The news: Prime Day 2022 was Amazon’s biggest ever, the ecommerce giant said.
Inflation takes its toll: Rising prices had a clear impact on consumers’ purchase decisions. Shoppers gravitated toward deals on household essentials over categories like health and beauty and consumer electronics, last year’s top sellers.
Small businesses see mixed benefits: Amid an ongoing antitrust investigation by the European Commission, Amazon highlighted the success of small merchants on its platform, noting that this year marked “the biggest Prime Day event for Amazon’s selling partners.”
Amazon’s growing pains: While Prime Day 2022 appears to be a success on paper, the shift toward smaller-ticket items like chips and toilet paper may have eaten into Amazon’s margins, even when accounting for record Amazon device sales.
The company is also proposing concessions to its European business that could affect its ability to grow as it seeks to quell antitrust scrutiny.
The big takeaway: Prime Day is no longer the tremendous boost to Amazon’s business it once was, although it will likely help the ecommerce giant overcome sluggish sales in the first part of the year.
But as eroding spending power forces consumers to make hard choices about what and how they buy, Amazon’s reputation for good deals coupled with the convenience of Prime delivery could make the retailer the first port of call for inflation-weary shoppers.
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