Anyone planning to buy groceries on Amazon’s Prime Day?
Ecommerce giant Amazon’s biggest day of the year is nearly here: the fourth annual Prime Day will kick off on July 16 and last for a solid 36 hours. Over that period, Amazon Prime members will have access to a bevvy of fast-release special offers and deep discounts. It’s a proven method for getting people to double down on their book and gadget spending habits, and the company takes in massive amounts of revenue from it: last year, for example, sales on Prime Day rose by 60% from 2016, and 3.5 million toys were sold. This year will be different in one, exciting, way: it’s the first Prime Day since Amazon acquired Whole Foods.
Amazon’s share price has surged this year
Source: Yahoo Finance
Amazon is offering discounts on everything from strawberries to cod and chicken in an effort to get consumers into its brick-and-mortar empire. It’s also pushing special deals to get them to try home delivery from an Ecommerce grocery shop. The name of the game here is not to make as much money as possible, but to introduce shoppers to a new paradigm for grocery purchases in much the same way Amazon did with books and electronics. It’s a great strategy: by 2022, online grocery sales will hit $100 billion, with 70% of households shopping online. Amazon wants to be the major player in that growing market.
Paco Underhill, founder of behavioural research firm Envirosell, said: "They want people to realize how much stuff in their kitchens they don’t need to schlep to the store for anymore. Amazon wants to train people to shop differently. Prime Day is an opportunity to introduce them to that new form of shopping."
Of course, groceries won’t be the only thing on offer. Amazon is making an even bigger commitment to slash prices this year, discounting its Echo Show by $100, and pushing Alexa into yet more homes. And, if Jeff Bezos gets his way, the things we start asking her to do will soon include ordering our cereals from Amazon.com.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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