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June 25, 2021

Prime Day 2021 Displays Modest Sales Growth

Posted In: Retail Articles
Prime Day 2021 Displays Modest Sales Growth

By: Mike Duff

Amazon scored Prime Day sales of $11.19 billion globally over the two-day promotional period spanning June 21 and June 22, Digital Commerce 360 estimates, a gain that the market research characterized as significant but “modest,” as multiple observers released evaluations of the event.

Whether the significant counter promotions launched by mass-market retailers such as Walmart and Target and more specialized players such as Bed, Bath & Beyond had an impact on the Amazon result will become more obvious after rivals produce numbers for their own sales events.

Digital Commerce 360 noted that the Amazon sales total represents a 7.6% gain over the 2020 two-day event, held in October as the company decided to change dates from the usual mid-summer slot in response to the COVID-19 pandemic.

The market research firm’s analysis of Amazon’s seventh-annual Prime Day event also indicated that sales of products listed by third-party marketplace sellers grew 12% from the Prime Day prior while spending on Amazon’s own products, including its private-label goods, advanced 5.3%. Marketplace sales accounted for about 36% of Prime Day spending on Amazon.com, Digital Commerce 360 stated, up from 35% in 2020 and 32% in 2019. It added that 1.5 million third-party merchants sell on Amazon’s marketplace.

Number 1 in the market research firm’s Top 1,000 ranking of the biggest online retailers, Amazon grew e-commerce sales by 41% last year, surpassing the 32% growth of the U.S. e-commerce market.

Market research firm Numerator pointed out that the Prime Day Amazon order size was $44.75 on average, down from $54.64 during Prime Day 2020 and $58.91 during Prime Day 2019. Just over one in 10 households that shopped Prime Day placed more than five orders throughout the event, and 55% placed more than orders, Numerator indicated. On the higher end, 52% of participating shoppers spent more than $100 on Prime Day, bringing the average household spend to $106.41.

Reports put total U.S. online retail sales during the two-day Prime Day event as surpassing $11 billion, citing Adobe Analytics, 6.1% higher than overall e-commerce transactions generated by the 2020 promotion.

Still, Prime Day underscores Amazon’s role as the e-commerce leader in the U.S., where it won 39% of online sales last year, according to Digital Commerce 360 analysis. Prime members purchased more than 250 million items worldwide during the 2021 event, the market research firm related, citing Amazon’s own numbers, with best-selling categories worldwide including tools, beauty, nutrition, baby care, Amazon devices, electronics, apparel and housewares.

 

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