Amazon Prime Day 2020 will be unlike any other since its debut five years ago. Amid the backdrop of a pandemic and recessionary headwinds, this year’s event promises significant changes that will shake up the entire retail landscape heading into the holidays.
An estimated $6.93 billion was generated in worldwide sales from Amazon’s Prime Day 2019, a 48-hour event held July 15-16, according to our latest forecast.
This year, Prime Day will be held on October 13-14, nearly three months later than its typical mid-July timing. This will result in a different focus, de-emphasizing products for summer and back-to-school and making the event an early lead-in to the holiday season. We forecast that it will generate $9.91 billion in worldwide sales for Amazon, up 43% from last year’s event.
Despite a more uncertain economy, we believe Prime Day will build on past momentum as consumers continue to spend heavily on ecommerce and will be active deal-seekers heading into the holiday season.
To maximize sales on Prime Day and in its aftermath, Amazon needs flagship products that generate excitement and promotions tailored to customers’ changing lives amid the pandemic. Amazon did not disappoint on the new product front, unveiling an array of new Alexa-enabled devices and existing product upgrades at a September 24 event. Among the highlights were a revamped Echo, Echo Dot, and Echo Show, and a Ring home security drone. Not all products unveiled at the event will be available for Prime Day, but it appears that some will.
Even without the pandemic upending consumer spending habits, landing Prime Day in October will be a disruptive force to the holiday season. According to August 2020 research from Criteo, 75% of Prime members said they were likely to purchase some of their holiday presents on Prime Day, and 73% said they were likely to spend some of the money they save for Black Friday on Prime Day. This will further separate retail winners and losers.
Prime Day’s delay to October gives Amazon a unique opportunity to generate member engagement and new sign-ups right before the holidays while also experimenting with different promotional schedules.
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