Prime Day, a global shopping event that lasts only two days and is exclusive to Prime members, begins this Monday. Amazon has promised to provide one-day shipping for all of the 10 million products sold on their website. The event is expected to break all records this year. Held annually since 2015, this is the first time that it will last for two days.
Sucharita Kodali, an analyst at market research company, Forrester, said: “For them to be able to deliver the volume of transactions, it will likely be hundreds of millions, in a short compressed period of time. This really is about giving them practice for doing this later in the year.”
Prime Day is a vital part of Amazon’s business strategy – they use it to promote their products and to advertise all the benefits that come with being a Prime member. For $12.99 per month or $119 a year, members get perks such as free shipping and access to Prime Video and Prime Music streaming services.
Justin Post, Bank of America analyst, wrote: “Prime Day remains a strong branding event that can also drive strong Prime subscriber additions and device sales, ultimately increasing customer lock for Alexa and Prime.”
Competitors such as Walmart and Target are already planning their own exclusive sales days, with Walmart set to roll out their own next-day delivery service.
Amazon is expected to benefit between $5 to $6 billion from this. The company is valued at $989.5 billion, and their shares are up by 34% since January.
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