As the clock strikes midnight tonight, Amazon is gearing up to unleash its much-anticipated Prime Day in the UK. For a span of 48 gruelling hours, online shoppers will be swept up in a whirlwind of deals and discounts.
However, before we plunge into this shopping frenzy, let’s take a moment to reflect on the history of this commercial spectacle, its profound influence on consumer behaviour, and Amazon’s evolution.
The Evolution of Amazon Prime Day
In 2015, Prime Day made its debut on July 15 to commemorate Amazon’s 20th anniversary. It quickly transformed an ordinary summer day into a retail event rivalling the sales of Black Friday. Initially a 24-hour event exclusively for Amazon Prime members, Prime Day has grown over the years to span a full 48 hours, a testament to its enormous success.
This event has not merely expanded in duration, but it has also evolved in nature. From promoting small and medium-sized businesses to showcasing Amazon-branded products, Prime Day has constantly reinvented itself, keeping shoppers on their toes. Prime Day has not only reshaped shopping habits, creating an additional peak shopping season during a traditionally slow retail period but has also significantly boosted Amazon Prime subscriptions.
Prime Day Amidst Financial Turbulence
This year’s Prime Day, starting tonight at midnight, arrives against a backdrop of financial turbulence. With consumers feeling the pinch due to the ongoing economic crisis and rising inflation rates, the demand for the best prime day deals is more intense than ever. Consequently, this year’s promotion could not have come at a better time. The event offers consumers a much-needed opportunity to maximise their spending power during this typically quiet retail period. It also provides a glimmer of hope to many retailers who anticipate a sales splurge, which can stimulate the economy amidst these challenging times.
The economic crisis and rising inflation rates may have resulted in consumers tightening their purse strings, but this doesn’t necessarily imply a drop in Amazon Prime Day sales this year. As Matt Williamson, SVP and Industry Principal at Endava, points out, “Last year 300 million items were sold during Amazon Prime Day – up from 250 million the previous year – despite the global economic downturn. Amazon‘s scale and diverse product offering enable it to meet shifting consumer demand and act as a one-stop-shop for customers.
The Role of Reviews and Ratings During Prime Day
As retailers move to compete with Amazon – some have even launched their own competitive ‘prime days’ to drive sales – improving the shopping experience for customers is key. Reviews have always played an integral role in shaping the Amazon shopping experience. They serve as a form of social proof that bridges the gap between virtual shopping and the tangible certainty that physical stores offer. In an online shopping environment where consumers can’t physically examine a product, reviews provide valuable insights into the product’s quality, functionality, and overall performance. They offer an unfiltered perspective, often detailing the user’s experience, thus helping potential buyers make informed decisions. Additionally, reviews can also influence a product’s visibility on Amazon, as products with higher ratings tend to appear more frequently in search results.
Ed Hill, SVP EMEA, Bazaarvoice commented: “Amazon Prime Day continues to gain momentum every year, and this one will be no different with shoppers looking to snap up bargains amid rising costs of living. Consumers will not only be able to enjoy sales on the Amazon website and app, but other brands and retailers are also taking advantage of the occasion by hosting their own sales simultaneously to capture the momentum.
While price will be a key factor in purchase decisions this year, product ratings and reviews also play a key role in influencing consumers, with 39% of shoppers stating that reviews are the most important part of a product page. Shoppers rely heavily on consumer recommendations to inform their purchasing decisions and are unlikely to buy a product that lacks positive reviews and ratings. Reviews that include photos and videos of products are especially helpful for shoppers looking to validate their decision before purchasing.
Retailers should actively encourage and collect customer feedback, ensuring it is easily accessible to potential buyers. This strategy enhances credibility, builds trust, and ultimately attracts more shoppers to make confident purchases.”
Gen Z relationships
The younger generation of shoppers are typically more value-driven and often favours shopping with smaller and independent retailers. But this demographic is also digitally savvy and accustomed to slick technology, as well as generally having shorter attention spans. As a result, they find themselves coming back to the big players – that offer myriad payment solutions and services – for convenience and reliability. And Gen Z’s relationship with finance is also evolving, as they turn away from traditional credit in favour of more flexible payment methods that allow them to buy now and pay at a time that suits them. The rise of these services and integration into merchant offerings means that retailers are embedding payments to go the extra mile in driving sales and building customer loyalty, whilst also improving the overall shopping experience – a win for both consumers and retailers.”
Prime Day has also played a crucial role in Amazon’s growth narrative. With Prime membership exceeding 200 million by 2021, Amazon uses this event as a platform to test new features, marketing strategies, and products. It’s become an integral part of Amazon’s broader retail strategy.
How Prime Day is Transforming Retail Landscape
Prime Day’s influence extends beyond mere consumer spending. It’s drastically shifted the retail landscape, influencing competitors to offer their own summer deals in an attempt to keep pace. The introduction of ‘Prime Day Concerts’ and the increased focus on supporting small businesses in recent years signal Amazon’s ongoing commitment to adapt and broaden its appeal.
As we brace for 48 hours of relentless retail indulgence, it’s fascinating to consider how a simple sales event has revolutionised shopping habits and moulded Amazon into the powerhouse it is today. Against the current economic backdrop, this year promises not only a respite for budget-conscious consumers but also a potential boost to a struggling retail sector. Its impact will likely echo far beyond the imminent shopping bonanza.
