--- title: "High Oil Prices Erode US Consumer Purchasing Power; Amazon Prime Day Starts Softly with 16% Drop in Household Spending" type: "News" locale: "en" url: "https://longbridge.com/en/news/290749362.md" description: "Amazon Prime Day starts off cold: Numerator data shows average household spending on the day was approximately $89, a sharp 16% year-over-year decline. Surveys indicate that consumers, facing budget constraints due to high oil prices, generally expect deeper discounts; however, high oil prices and tariffs have also increased seller costs, leading to relatively narrower discounts this year" datetime: "2026-06-24T23:19:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290749362.md) - [en](https://longbridge.com/en/news/290749362.md) - [zh-HK](https://longbridge.com/zh-HK/news/290749362.md) --- # High Oil Prices Erode US Consumer Purchasing Power; Amazon Prime Day Starts Softly with 16% Drop in Household Spending Amazon's annual shopping festival, Prime Day, faces a double whammy of tariff uncertainty and cost pressures, resulting in a significantly weaker start compared to last year. According to data from market research firm Numerator, as of 4 p.m. New York time on Tuesday, the average household spending tracked was approximately $89, a decline of about 16% from the same period last year. Meanwhile, analysis by global marketing company PMG shows that Prime Day discounts will narrow further this year, continuing a downward trend seen over multiple years. Consumer disappointment is already evident. Patrice Kihlken, a retiree from Ohio, browsed for summer dresses and jewelry-making materials on the day but found nothing satisfactory. "Most items are only discounted by 5%, 10%, or at most 15%. Truly good products are not discounted at all," she said. ## Consumers Face Budget Squeeze from High Oil Prices, Expect Deep Discounts Now in its 12th year, Prime Day is facing structural pressures. On one hand, high oil prices are squeezing consumer budgets, raising shoppers' expectations for significant discounts; on the other hand, brands and third-party sellers are constrained by rising costs and ongoing tariff uncertainty, making it difficult to meet these expectations. According to a survey conducted by marketing agency Tinuiti Inc. in April this year, more than 70% of shoppers stated that a discount of at least 30% off is required for a product to be considered a "good deal," while 20% of respondents believed the discount should be at least 50% off. Despite this, nearly 90% of Amazon Prime members plan to participate in the event. In a statement, Amazon spokesperson Maxine Tagay said that third-party data regarding transaction selections and purchasing trends is "often inaccurate" and that the company is "satisfied" with the early consumer response. She added that currently, more than one million items are being sold at their lowest prices of the year, with over 100,000 transactions offering discounts of no less than 40%. ## High Oil Prices and Tariffs Push Up Seller Costs, Narrowing Discounts Become a Trend Josh Ketter, a third-party seller from Lincoln, Nebraska, operates Spreetail, which sells products including swimming pools, trampolines, and patio furniture across platforms such as Amazon, Walmart, and TikTok Shop. He stated that high oil prices and tariff uncertainty make it increasingly difficult to offer substantial discounts this year. Since many of his products are made from petroleum-based plastics, oil price volatility triggered by the situation in Iran has directly increased his operating costs. "Last year, we still had some inventory imported before the tariffs took effect, so our situation was much better," Ketter said. He revealed that the average discount range for Prime Day this year is only between 15% and 20%. He also observed that consumers are actively shifting to lower-priced alternatives, such as choosing a $500 swimming pool instead of a $1,000 model. ## Overall Online Spending Still Grows, Consumers Mainly Stock Up on Daily Essentials Despite the narrowing discounts, the overall scale of online spending is expected to continue growing. According to forecasts from Adobe Inc., which tracks retail website traffic, total online spending by US consumers during this Prime Day and concurrent promotions by other retailers will reach $26.3 billion, a 9% increase from the four-day event last July. Adobe expects discount levels to remain largely flat compared to last year—with clothing and electronics categories seeing approximately 23% off. Back-to-school clothing is expected to be the leading category for this promotion. Notably, while participating in Prime Day, consumers are also comparing prices on competing platforms such as Walmart, Target, and Costco. Numerator data shows that about half of shoppers cited inflation as one of the drivers for seeking Prime Day deals, with households planning to spend an average of approximately $187. Numerator tracked over 6,700 Prime Day orders from more than 3,600 households, showing that consumers mainly stocked up on daily essentials such as trash bags, cat treats, and makeup removal products. ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [BNO.US](https://longbridge.com/en/quote/BNO.US.md) - [03175.HK](https://longbridge.com/en/quote/03175.HK.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [UCO.US](https://longbridge.com/en/quote/UCO.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [ERX.US](https://longbridge.com/en/quote/ERX.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [PXJ.US](https://longbridge.com/en/quote/PXJ.US.md) - [XLE.US](https://longbridge.com/en/quote/XLE.US.md) - [IXC.US](https://longbridge.com/en/quote/IXC.US.md) - [03097.HK](https://longbridge.com/en/quote/03097.HK.md) - [SCO.US](https://longbridge.com/en/quote/SCO.US.md) - [USOI.US](https://longbridge.com/en/quote/USOI.US.md) - [ERY.US](https://longbridge.com/en/quote/ERY.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [VDE.US](https://longbridge.com/en/quote/VDE.US.md) - [XOP.US](https://longbridge.com/en/quote/XOP.US.md) - [IEO.US](https://longbridge.com/en/quote/IEO.US.md) - [IEZ.US](https://longbridge.com/en/quote/IEZ.US.md) - [OIH.US](https://longbridge.com/en/quote/OIH.US.md) - [XES.US](https://longbridge.com/en/quote/XES.US.md) - [CRAK.US](https://longbridge.com/en/quote/CRAK.US.md) - [DUG.US](https://longbridge.com/en/quote/DUG.US.md) - [MLPA.US](https://longbridge.com/en/quote/MLPA.US.md) - [WMT.US](https://longbridge.com/en/quote/WMT.US.md) - [ADBE.US](https://longbridge.com/en/quote/ADBE.US.md) - [TGT.US](https://longbridge.com/en/quote/TGT.US.md) - [COST.US](https://longbridge.com/en/quote/COST.US.md) ## Related News & Research - [Amazon Is Navigating a $200B Spending Cycle — AMZN Stock Is Still a Buy Now](https://longbridge.com/en/news/290601759.md) - [Mapping the Market: Tumbling global oil price could fall further](https://longbridge.com/en/news/290177067.md) - [Oil reverses earlier gains, sinks below $75](https://longbridge.com/en/news/290447300.md) - [When Will Gasoline Prices Return To Pre-War Levels?](https://longbridge.com/en/news/290478809.md) - [Amazon Says Co Plans To Invest $48 Billion In India From 2026-2030](https://longbridge.com/en/news/290796582.md)