Amazon.com Inc.’s Prime Day shopping bonanza will come at a good time this year for bargain hunters trying to save money amid rising inflation.
The e-commerce giant AMZN,
announced Thursday that Prime Day will take place on July 12 and 13 and will feature discounts on electronics, subscription services and more.
The event comes as consumers prepare for back to school, move on with summer plans and, for some early risers, start working on vacation wish lists.
US inflation has hit a 40-year high at 8.6%, driving up the cost of basic necessities like food and fuel.
“As more disabled consumers feel the pressure of rising commodity prices, they are determined to reduce spending by finding the best price deals online,” NielsenIQ wrote in a June report at global online shopping events. The report shows that shoppers around the world are going online to find the lowest prices.
“Financial polarization and ongoing escalation in commodity prices will further drive customers to look for ways to reduce spending.”
See: Here’s what 8.6% inflation looks like to the average grocery shopper — bacon is over $7 a pound, cookies are up 49 cents
Likewise: Amazon Prime Day 2022 will take place on July 12-13. Here’s how to find out if $139-a-year Prime membership makes sense for you
Low-income shoppers are already feeling the pressure. Walmart Inc. WMT,
said during its recent earnings that shoppers are switching to cheaper items to help manage their household budgets.
The data shows that inflationary pressures are increasingly being felt across the income spectrum.
Black Friday. com says 65% of American consumers have a Prime membership and 88% of those members plan to shop on Prime Day. However, shoppers plan to spend an average of $233, down $93 from a year ago. Almost half of Americans (47%) said they are waiting for Prime Day to make their biggest purchases of the year, with clothing, home decor, headphones and computers expected to be the top categories.
Amazon is offering free Prime Day trial memberships as part of the event.
Emarketer forecasts global Prime Day sales to reach $12.52 billion, with the majority, or $7.76 billion, taking place in the US. US sales are expected to increase by 16.8%.
“This is due to increased consumer search behavior and the better timing of mid-July this year compared to June last year to capture back-to-school demand,” eMarketer wrote.
“The return to office, summer wedding and events season and the resumption of major summer travel will also boost demand for certain apparel and accessories subcategories. Relevant brands can get involved by using Amazon Live to showcase their wares to a willing livestream audience during Prime Day.”
Competitors like Walmart and Target Corp. TGT,
those who tend to plan their own shopping events around Prime Day will also get a boost from the Amazon event. Emarketer expects sales at competing retailers to increase 17.8% year over year to $5.22 billion.
Read: Target’s markdown strategy signals a return to pre-COVID prices across retail, analysts say
Walmart held an event for its Walmart+ members earlier this month.
Amazon stock is down 38.4% year to date.
https://www.marketwatch.com/story/amazon-prime-day-will-be-huge-for-deal-seekers-hoping-to-score-a-discount-amid-soaring-inflation-11655391628?rss=1&siteid=rss Amazon Prime Day will be huge for bargain hunters hoping to score a discount amid rising inflation