Amazon's bold attempt fails, extending Prime Day from two days to four days, with a sharp drop in sales on the first day of the promotion

Amazon made a bold attempt this year by extending its annual "Prime Day" summer sale from two days to four days, hoping that this extension would give consumers more time to browse the thousands of discounted products on its website. However, the initial results were disappointing, increasing the sales pressure for the remaining days. Momentum Commerce manages online sales for 50 brands across various product categories and price points. The company reported that its sales on Amazon plummeted by 41% this Tuesday compared to the start of last year's Prime Day. John Shea, founder and CEO of Momentum, stated that the extended promotion time encouraged consumers to engage in more "treasure hunt" shopping. They browsed and added items to their carts but delayed placing orders in hopes of better discounts. In contrast, the previous two-day short promotion created a stronger sense of urgency, with concerns about missing out on deals: The success or failure of this four-day strategy is crucial. Amazon has already made significant sacrifices on the first day. This year is extremely unpredictable and full of uncertainties. Shea pointed out that if the browsers in the last few days convert to buyers, Momentum's sales during the entire four-day event could still grow by 9.1% compared to last year's two days. Momentum represents brands like Crocs, Beats, and Therabody on Amazon, with annual sales of about $7 billion, making it somewhat representative of the market. U.S. President Trump's trade negotiations have cast a shadow over the economic outlook, and the Prime Day annual promotion has become a barometer of consumer confidence. The unclear price outlook has led some online merchants to even reduce discounts or choose not to participate in the promotion. Jamil Ghani, head of Amazon Prime, stated in a media interview that the company extended the promotion to four days because consumers wanted more time to browse deals. He mentioned that consumers are more inclined to purchase everyday essentials, such as teeth whitening strips, which have become Amazon's fastest-growing category; the company is satisfied with user engagement and noted that it is still too early to draw conclusions. On the first day of the promotion, consumers leaned towards purchasing low-priced items like dish soap and protein drinks rather than high-priced items like TVs and gaming consoles: Market research firm Numerator tracked over 7,000 orders from 3,855 households, showing that nearly two-thirds of the items sold during Prime Day were priced below $20, with only 3% of items priced over $100. Best-selling items included Dawn dish soap, Premier protein drinks, and Finish dishwasher rinse aid. According to Numerator data, the average spending per household was $106, down from $110 during the same period last year; the average price per item was $25.46, also lower than last year's $28. Numerator analyst Amanda Schoenbauer stated, "This year, Prime Day consumers purchased more lower-priced items, with the average price per item slightly lower. However, due to the promotion being extended to four days, Prime Day in 2025 still has the potential to break historical records Adobe stated that American consumers spent a total of $7.9 billion online across various e-commerce platforms on Tuesday, an increase of 9.9% compared to July 16, 2024, which was the first day of last year's Prime Day. Total spending is expected to reach $23.8 billion over the four days. Amazon's promotions also overlap with the multi-day promotional events of Walmart and Target, creating a wave of online shopping frenzy. Shea from Momentum stated, "This year's Prime Day has a more significant halo effect on other retailers."