Under the heavy pressure of tariffs, Amazon's annual promotion had a poor start: sales in the first four hours fell nearly 14% year-on-year
In addition to the impact of tariffs on promotional efforts, weak sales may also stem from the fact that Amazon's Prime Day event duration has been extended from two days to four days this year, making year-on-year comparisons more complex, as consumers may be waiting for larger discounts
Data from digital commerce technology and service companies shows that Amazon's annual promotion—Prime Day—has had a poor start this year.
Media reports citing data from Momentum Commerce indicate that sales during the first four hours of Amazon's Prime Day fell nearly 14% compared to the same period last year.
Momentum Commerce manages approximately $7 billion in sales for 50 brands, including Crocs and Beats, and its data is often seen as a barometer of consumer sentiment and the overall economic outlook in the United States.
Commentators believe that Momentum's high-frequency data has led investors to adopt a negative outlook on this year's Prime Day, which is not the summer consumer sentiment performance investors hope to see, potentially indicating that consumers are shopping more cautiously.
On the day the data was disclosed, Amazon's stock fell over 1.8% on Tuesday, dropping from the high reached on Monday, the highest since February 19. Among the Magnificent 7 tech giants in the U.S. stock market, it performed the worst on Tuesday.
Three weeks ago, Amazon announced that this year's Prime Day would start on July 8 and last until July 11. Amazon stated that this is the first time the Prime Day event will last four days, creating a longer shopping period for Amazon's global Prime members and providing global sellers with opportunities to expand and increase sales.
Media analysts believe that the weak sales reflected in Momentum's data for this year's Prime Day partly stem from the extension of the event duration from two days to four days, making year-on-year sales comparisons more complex. Consumers may be waiting for larger discounts and are less willing to place orders as promptly as in past events.
The high tariffs imposed by the Trump administration are also seen as a factor contributing to the weakness, as tariffs have affected sellers' promotional efforts, making it difficult to attract price-sensitive consumers.
Additionally, media observations noted some key points for this Prime Day: discounts on Amazon's own devices, such as Echo, are fewer this year; the promotion competition is driven by necessities rather than tech products, with grocery discounts being larger than those on electronics; Apple has some decent offers, such as AirPods 4 priced at $89, which is cheaper than last year's Black Friday promotional price
