Under the impact of tariffs, the "American version of 618" started weakly, with sales in the first four hours down 14% year-on-year

Amazon Prime Day shopping festival starts off weak, with sales in the first four hours down nearly 14% compared to the same period last year. This annual promotional event of the world's largest e-commerce platform is facing dual challenges of slowing consumer purchasing power and tariff impacts.

According to data from Momentum Commerce, an e-commerce service provider managing 50 brands with annual sales of approximately $7 billion, this year's Prime Day sales performance in the first four hours was significantly below expectations. The company provides Amazon sales management services for well-known brands such as Crocs, Beats, and Therabody, and its large sample size offers important references for assessing Prime Day performance.

As a result of this news, Amazon's stock fell 1.8% in pre-market trading. Investors and analysts are closely monitoring the performance of this shopping festival as an important indicator of the strength of the U.S. economy and consumer confidence.

It is worth noting that this year's Prime Day event has been extended from two days in previous years to four days, making year-on-year data comparisons more complex, but also providing Amazon with greater space to disperse sales pressure and maintain overall performance.

Under the impact of tariffs and consumption downgrade, the expanded scale of the event cannot hide the weak start

This year's Prime Day started in July and lasts for four days, doubling the duration of the two-day event in 2024. Although the extended time window may disperse sales peaks and affect the comparability of year-on-year data, the performance in the first few hours is still seen as a key indicator of the overall success of the event.

According to historical data from Momentum Commerce, the sales peaks for Prime Day in 2024 occurred on the morning and evening of the first day, as well as the evening of the second day. This year's four-day event is expected to make sales more dispersed, but whether this strategy can compensate for the weak early sales performance remains to be seen.

This year's Prime Day faces a more complex external environment. The tariff policies implemented by Trump have raised the prices of imported goods, causing some sellers to choose to withdraw from the promotional activities. Jed Ellerbroek, portfolio manager at Argent Capital, stated:

“Amazon may be the most affected by tariffs among large tech companies, and these tariffs have again become a focus this week.”

According to Kristin McGrath, senior editor at the deal search website The Krazy Coupon Lady, Apple has offered the largest discounts on electronic products, including the $89 AirPods 4 wireless headphones, which are even priced lower than last year's Black Friday. In contrast, discounts on Amazon's own products, such as the Echo smart speaker, are not significant.

Consumer purchasing preferences are also changing. McGrath pointed out that competition is most intense in areas such as packaged lunch snacks, where retailers like Amazon, Walmart, and Target are engaged in fierce price wars:

"Stores are meeting consumers' discount demands on everyday essentials rather than tech products."

Market Expectations and Competitive Landscape

Adobe expects total online sales across all retailers during the four-day event to reach $23.8 billion. Market research firm eMarketer estimates that online spending in the U.S. will hit $17.2 billion, with Amazon capturing 75% of the share.

Since its launch in 2015, Prime Day's main goal has been to attract new Prime members. Users must pay an annual membership fee of $139 to enjoy various benefits, including shipping discounts and video streaming services. According to data from market research firm Consumer Intelligence Research Partners, as of March this year, the number of Prime members in the U.S. reached 196 million, a year-on-year increase of 9%.

Amazon did not immediately respond to requests for comment regarding Momentum Commerce data. The company previously stated in a release:

"We are working with a wide variety of important sales partners in-store to support them in adapting to the evolving environment while maintaining low prices and a wide selection for customers."

Amazon is also facing fierce competition this year from same-day promotional events by other retailers, including Walmart's, Wayfair's "four-day sale," and Target's "Circle Week."