Online retailer Amazon on the eve of the famous Prime Day, what can investors expect?

This year, the most prominent American online retailer Amazon Inc. (AMZN) holds the famous For the seventh year running, Prime Day has been a sale day. What to expect from the event that will take place on July 12 and 13? Last year, during Prime Day, retailer Amazon sold more than $11 billion worth of goods, according to Digital Commerce 360, which is 8% more yearly. Growth only seems small at first glance, but the company faced a difficult comparison in 2021. A year earlier — in 2020 — due to closed stores and shopping centers, sales growth on Prime Day was 45%. 

This year, Amazon’s sales will be affected by macroeconomic factors such as inflation, rising energy prices, and unresolved supply chain problems, leading to consumers being more inclined to spend money on essential products and reduce discretionary spending. However, the results of competing retailers may inspire Amazon’s optimism. One of the leaders of Chinese online retail JD.com (JD), recently completed the “618” shopping festival. During the 30-day event, more than $56 billion worth of goods, which is 10% more yearly. 

At the same time, household goods and health protection were in great demand. For example, JD has tripled sales of robot vacuum cleaners and air purifiers this year. In addition, the company noted a big jump in the sale of specific categories of electronics: sales of laptops increased by 120%, and sales of televisions increased fivefold. Additionally, the retailer reported more frequent purchases of leisure and vacation goods. 

Thus, Amazon can also count on sales growth in at least the same categories. Prime Day is still of great importance for the buyers of the platform. Many of them specifically postpone the purchase of more expensive goods for this period. The retailer launched the first promotions within Prime Day last week because Amazon will be able to present the first sales results even before the event.