Amazon’s two-day October Prime Day sales may outperform last year’s Cyber Monday sales, according to data analytics firm Numerator.
About one third of US households are expected to shop the Oct. 10-11 sale, and will likely opt to buy toys and Barbies over electronics.
While Numerator stated the fall sales “will bring a significant boost to e-commerce sales in general,” the participation level is lower than the summer Prime Day sales.
Amazon Stores CEO Doug Herrington said that “the first day of Prime Day was the largest sales day in Amazon’s history” in a July news release, without sharing the figures. Digital Commerce 360, an e-commerce research firm, estimates the July 11-12 sales neared a record-breaking $13 billion.
Retailers expect big sales
Big retailers have been preparing for big sales events as the holiday season approaches. Amazon is hiring 250,000 logistic workers, Target is bringing on 100,000 seasonal workers, and Macy’s is planning to hire more than 38,000 employees.
Adobe, a software and analytics firm, forecasts that online holiday sales in the US will hit $221.8 billion this holiday shopping season (Nov. 1 to Dec. 31), which is up 4.8% from last year.
Cyber Monday sales are expected to top $12 billion this year.
Flexible payment options such as “Buy Now, Pay Later” (BNPL) are also expected to set new records this season, driving $17 billion in online spending.
Shoppers are more budget conscious
Facing sustained inflation and rising prices, shoppers are budget conscious and plan to shop during Black Friday or Cyber Monday, wrote market research firm Mintel in a press release.
They found from their survey that 42% of winter holiday shoppers will buy less gifts, while a quarter will switch to lower-priced retailers. Nearly half the survey respondents will consider buying pre-owned gifts to save money. That number increases with Gen Z (18-24 years old), with 68% willing to buy second-hand.
With the September producer price index (PPI) rising unexpectedly to 2.2%, far above the expected 1.6%, and core PPI excluding food and energy up 0.3%, above the forecast for 0.2%, inflation remains a thorny issue.
PPI is the price of producing goods, which ultimately may reflect on the price passed onto consumers.
Still, consumers are excited about the winter holiday season, with 62% planning to attend in-person events and gatherings, wrote Mintel.