Experts say Amazon is selling more deals during Prime Big Deal Day as cash-strapped consumers (also nervous about last week's U.S. port strikes) jump on sales early and often. Consumer spending is likely to increase.
Amazon's Prime Big Deal Days (also known as the October edition of the Prime Sale) take place on Tuesdays and Wednesdays. The 48-hour sale is similar to Prime Day in July, and offers a wide range of deals and discounts on a variety of products exclusively for Amazon Prime members.
Amazon has not disclosed specific sales figures for the Prime event, but sales are expected to increase compared to last year.
“People are looking for deals because the economy is not as good as it used to be,” Jay Kamhi, developer of the fortune-telling toy “Mr. Predict” and president of Amazon's toy retailer Kamhi World, told the Post. .
The historic port strike, which ended late Thursday after a tentative agreement between longshoremen and port employers, threatens to hurt Amazon by causing shortages and price hikes similar to the economic disruption seen during the pandemic. there were.
But while Amazon and other big retailers, which had stockpiled in anticipation of the strike, won't feel the impact for at least a month, SMI Group CEO Kenin says smaller retailers will suffer from shortages in just a few weeks. Spivak told the Post.
Nevertheless, experts advised consumers to start their holiday shopping early this year to prepare for potential supply chain disruptions.
“Consumers don't buy fresh produce, so I don't think it would do much harm to consumers to shop now and put the toys in the closet and wrap them up closer to Christmas,” Spivak told the Post. spoke.
But he also warned that this is a double-edged sword. The earlier consumers start shopping, the sooner supplies will run out.
Spivak said about two-thirds of container shipments, including goods such as clothing, furniture, toys and electronics, arrive via East Coast ports.
West Coast ports are already at maximum capacity ahead of the busy season, with major route changes underway.
“Most manufacturers have been watching the strike unfold closely for months and have contingency plans focused on West Coast ports,” said H Squared Research Principal Investigator and Parsons School Director. Hisa Herzog, a part-time lecturer at the School of Design, told the Post. .
Herzog said last-minute route changes could increase costs by about 15% or 20%, but companies are likely to absorb these costs.
Mr. Spivak told the newspaper that new imports from the West Coast would incur higher fees to be shipped by train or truck to the East Coast.
But experts say Amazon's fears appear to be over because the strike ended in three days and major retailers had ordered at least several weeks' worth of inventory in anticipation of the strike.
In addition to stocking up on Halloween decorations, consumers are likely to use Prime events to get their Christmas shopping done early, Kamhi said.
Kamhi said small household appliances and kitchen appliances are also popular choices at Prime Events.
Gabe Ray, co-founder of Evolved Commerce, told the Post that the beauty and electronics categories, which are filled with popular gifts, are likely to see sales growth as well.
Most customers are likely to wait to purchase larger items, such as furniture or more expensive holiday gifts, during traditional Black Friday and Cyber Monday sales, Ray said.
The average spend per order during Prime Big Deal Day in 2023 was $55.86. According to the molecular report.
The average household spending during the sale period was $108.86, the report said.
About 28% of Prime Big Deal shoppers said they purchased holiday gifts during sales last year, and nearly one-third of shoppers spent at least half of their holiday shopping during sales, according to the report. I replied that I had finished.
About 6% of households that shopped during the sale placed at least five orders in the first 30 hours of Prime Big Deal Day, the report said.
Ray said Amazon continues the trend of consumers moving to online retailers after the boom in online shopping during the pandemic.
“The shift from brick-and-mortar stores to online shopping continues to advance,” Ray told the Post.
Despite economic impacts such as long-term inflation, consumers continue to spend more money on Amazon each year, Ray said.
Amazon won over customers by offering more same-day delivery options and improving convenience.
While online shopping was previously thought of as a fad among younger generations, “older generations are also embracing online shopping more and it's becoming easier for them to embrace it.” Ray told the Post.
