Majors

How Retailers Can Benefit from Amazon’s Prime Day

MajorsJun 09, 2021

How Retailers Can Benefit from Amazon’s Prime Day

An increasing number of retailers have been running promotions alongside Prime Day, according to a recent survey.

20210609_Amazon truck.jpg
Amazon’s annual Prime Day sales event is slated for June 21-22. (Image courtesy of Amazon)
Seattle—Amazon will hold its seventh annual Prime Day sale this month, but competing sales and an incentive from the retail giant to shop small may benefit other retailers, too.

The two-day sales event, slated for June 21-22, is available exclusively to Amazon Prime members.

Amazon is kicking off the sale with several early release deals available now, including discounts on its in-house brands, like Solimo and Revly, as well as third-party products.

Shoppers can find early bird deals on Calvin Klein and Tommy Hilfiger apparel, select Xbox games, Ninja blenders, iRobot vacuums, and more.

Though Amazon doesn’t disclose its Prime Day sales numbers, it brought in an estimated $10.4 billion worldwide last year, according to Digital Commerce 360.

A survey conducted by RetailMeNot found that 81 percent of shoppers have an Amazon Prime membership, with the average consumer planning to spend $326 at Amazon on Prime Day.

Rival retailers Walmart and Target are holding their own competing sales, both starting a day earlier on June 20 and lasting longer than Prime Day.

Target’s online sales event, called Target Deal Days, will run from June 20-22. Unlike Amazon, shoppers won’t need a membership to take part in the sale.

Walmart’s event, called Deals for Days, offers online and in-store exclusive deals from June 20-23.

Shoppers are aware of the competing sales, planning to spend an average of $268 at other retailers on Prime Day.

Of those surveyed, 44 percent plan to purchase clothing, shoes, and apparel, followed by kitchen appliances (32 percent), smart home products, home décor, tablets (30 percent), and cleaning supplies (29 percent).

At-home fitness equipment (26 percent) and home office equipment (19 percent) have remained two popular categories throughout the COVID-19 pandemic.

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Retailers are cashing in on the momentum surrounding the shopping holiday, with more than 350 retailers promoting alongside Prime Day in 2020, 17 percent more than in 2019, according to the RetailMeNot survey.

Small businesses may be able to get in on the action as well.

The retail giant has once again incorporated a small business promotion into this year’s event.

From now through June 20, Amazon will offer Prime members a $10 credit to use on Prime Day when they spend $10 on items sold by select small businesses via Amazon.

This also includes select products from Amazon Handmade, its marketplace for handmade goods, and Amazon Launchpad, a program designed for start-up companies.

Funded by a $100 million small business investment, the promotion looks to connect shoppers to small businesses.

From June 7 to Prime Day, U.S. customers with an Amazon Prime Rewards Visa card and Amazon Prime store card holders with an eligible Prime membership will earn 10 percent back in rewards on select purchases from small businesses. 

Though Prime Day is mainly an online event, the sale will expand to Amazon’s physical retail locations, with deals available at Whole Foods Market, Amazon 4-star, Amazon Books, Amazon Pop Up, Amazon Go, and Amazon Fresh.

In celebration of the annual event, music stars like Billie Eilish, H.E.R., and Kid Cudi will star in a Prime Day Show, a three-part immersive musical event presented by Amazon Music.

Set to premiere on June 17, the show will be available to all customers, with or without a Prime membership, for 30 days.

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