The Prime Day shopping event, which is set to begin on Tuesday next week, will impact several retailers as Amazon drums up its marketing efforts around certain product categories.
While experiencing volatility in sales around the Prime Day event is nothing new, it can significantly impact retailers for better or for worse, CNBC pointed out.
In 2019, Amazon offered 60 percent off on first-time pet food subscription during the Prime Day event, leading Chewy to match up the offer on its site. Meanwhile, eBay launched a “crash sale,” wherein it offered discounts on major brands such as Apple, LG, Samsung and KitchenAid. The company promised to offer even deeper discounts if the Amazon website crashed. Other players such as Walmart and Target rolled out their own promotions that overlapped with Amazon’s Prime Day, offering discounts on in-house apparel and home goods without requiring shoppers to pay an annual membership fee. These brands have already announced deals that will be offered during the Prime Day this year but on their own websites.
In 2020, the eCommerce giant has focused on its apparel and accessories business, starting with the launch of “Making The Cut” show on Netflix earlier this year, which featured 12 designers competing for $1 million in prize money. Amazon Prime members could buy clothes designed by the winning candidate in each round on the Amazon app. More recently, the company rolled out a $4.99 personal shopper service for men. This is posing new competition for Stitch Fix, which has already been struggling. In June this year, the company reportedly laid off 1,400 stylists and has so far reduced its workforce by 18 percent. Stitch Fix is yet to announce any promotions that it would offer during the Prime Day event.
The event is expected to draw in revenue of $7.5 billion over the 48 hour sale period, up from $5.3 billion observed last year, according to JPMorgan.