Top Three Things To Expect For Prime Day 2019

 In Blog

Yes, it’s true, Prime Day is here and this year, we get not one, but two days to search and spend. Although Prime Day 2019 runs from Monday, July 15 – Tuesday, July 16, Amazon began offering Prime members deals early to promote excitement and sales. This year, Amazon is going above and beyond to attract online shoppers, with large advertising spends and multiple channels marketing Prime Day including a Prime Day concert that was streamed on Prime Video. 

Prime Day has become the Black Friday of the summer and a standalone business. We took a look at the historical data from Jumpshot and marketplace trends and here are our three key factors we anticipate for Prime Day this year. 

Amazon Products Will Be The Winner  

In June 2018, Amazon averaged 4.5M eCommerce sales a day across over 20 major categories. Amazon experienced over a 2X boost in transactions on Prime Day in 2018 with transactions growing to 9.3M on Prime Day. The boost in transactions, 4.8M to be exact, is more than many brands sell in an entire year and this was all achieved in a single day. 

Year-over-year, Prime Day has been a success for Amazon. With 2017 showing similar prosperous transaction counts. This year we anticipate another strong year for Amazon. Thus far in 2019 Amazon has averaged around 5M transactions a day. If the eCommerce powerhouse can maintain the same 2.3x prime day lift as 2018, transactions can potentially exceed 11M for Prime Day this year.  

Okay, so it’s clear Amazon is selling a lot on Prime Day, but what are the top products? Using Jumpshots data, we looked at the top 10 products purchased on Prime Day in 2018. A major trend stood out — the leading products were Amazon-branded and Alexa built-in devices. 

10 Products Purchased On Prime Day 2018

  1. Fire TV Stick with Alexa Voice Remote
  2. Echo Dot (2nd Generation) – Smart speaker with Alexa – Black
  3. Amazon.com eGift Card
  4. Fire TV with 4K Ultra HD and 1st Gen Alexa Voice Remote
  5. Toshiba 50-inch 4K Ultra HD Smart LED TV HDR – Fire TV Edition
  6. Kindle Paperwhite E-reader
  7. Echo Dot (2nd Generation) – Smart speaker with Alexa – White
  8. Echo (2nd Generation) – Smart speaker with Alexa – Charcoal Fabric
  9. Fire HD 8 Tablet with Alexa
  10. Fire 7 Tablet

Jump In, The Deals Are Fine: Smaller Fish Join The Big Fish 

As Amazon continues to promote their own products on Prime Day, other retailers are getting into the pond and riding the wave of excitement created by the promise of online deals. This buzz may create more opportunity for other brands to succeed. 

One retailer that is working overtime to match Amazon’s success verbatim is Target. As Amazon has expanded Prime to 48 hours, a 30-hour extension from 2018, Target is rising to the occasion with “Target Deal Days”. Target Deal Days will be held on the exact days as Prime Day this year. Target is spicing things up by offering same-day delivery options, in-store pickup and removing the membership requirement to participate. 

Jumpshot’s data reveals Target’s strategy is working. YoY Target has been the leading retailer receiving the largest boost from Prime Day.  In 2018, Target completed 256% more eCommerce sales on Prime Day than on an average day in June. While Target, is still a small fish in this pond, their boost is anything but modest. Other retailers have also shown success from Prime Day, including Macy’s and JCPenney

2017 Prime Day Boost 2018 Prime Day Boost
target.com 126% 256%
amazon.com 227% 232%
macys.com 118% 199%
jcpenney.com 100% 182%
nordstrom.com 101% 176%
kohls.com 96% 167%
bestbuy.com 97% 166%
landsend.com 170% 149%
costco.com 86% 142%
ulta.com 100% 141%

Source: Jumpshot. US data; Prime Day transactions vs. June average.

Target also has become a safe space for brands, launching high profile partnerships with several leading previously direct-to-consumer brands including Casper, Quip, and Harry’s and Native.  

Unlike Amazon who has increased their private label transactions 27%, Target is stepping away from private label brands. Transactions for private label brands dropped almost 50% over the year in 2018. 

For more information on other retailers joining the Prime Day surge, check out our the article on Riding the Prime Day Wave — How Other Retailers Push for eCommerce Growth on Amazon’s Big Day

The Chicken Or The Egg –  Same Profit Or Incremental Sales? 

A question that keeps appearing in regards to eCommerce and retail industry holidays is it the old question of which came first, the chicken or the egg? Do retail sales events truly generate incremental sales or do they simply funnel sales that would have occurred regardless through a more narrow time frame?

This is a difficult question to answer and to quantify. It’s hard to say if a consumer would have made the same purchases under different circumstances. Further, even if sales redistributed demand, this would still be a success for retailers. Similar to how Black Friday was invented to get struggling businesses out the red from poor sales in the first 11 months of the year, Prime Day allows Amazon to reap the same benefit. 

While there is no easy way to answer the above question, Jumpshot data suggests that Amazon and the online shopping industry has developed successful ways to build incremental sales with eCommerce growth.

Although Amazon saw a large increase in eCommerce retail sales in 2017, sales in July were down almost 3% from June. 2018 was a different story for Amazon. In July, sales were up 3.4%. In 2017 Target also saw a drop in transactions falling to 4.3% from the volume in June. 2018 was a redeeming year for Target as well, with July 2018 showing a growth of 18% for transactions from June 2018. We anticipate similar growth this year for both retailers and others getting into the eCommerce holiday sales game.

Final Thoughts

So, is Prime Day for consumers, brands, Amazon? Amazon has created a holiday that YoY has grown in popularity, expanding and extending as more consumers are eager to join in the shopping frenzy. We will continue to watch Prime Day 2019 and report not only on Amazon but on other retailers taking advantage of the strategy and retail trends. 

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