Amazon sold more than 100 million items at its first ever fall Prime sale event – nothing to sneeze at to be sure, but only a third of what the e-commerce giant moved during its main Prime Day sale in July. Yet Amazon’s Early Access sale, which took place on October 11-12, 2022, appears to have had the effect Adobe predicted to bring forward the start of holiday shopping earlier than ever.
As Amazon’s annual summer sale also tends to do, the Fall Prime promotion drove competitive sales at a host of other retailers, including Target, walmart, Bed bath and beyond, petco and Wayfair, among others. “Our Prime Early Access Sale was a great kick-off to the holidays, and the best part is, it’s just the beginning,” said Doug Herrington, CEO of Amazon Worldwide Stores in a statement.
Indeed, and starting sooner than ever with inflation, rising interest rates and recessionary pressures forcing shoppers to implement “new money-saving tactics, including starting to shop earlier to allocate their expenses,” according to Adobe.
Still, Adobe predicts that holiday sales in the United States will be strong this year at $209.7 billion from November 1 to December 31, representing 2.5% annual growth. And while Adobe still considers Nov. 1 the official start of holiday shopping, the company noted that Amazon’s fall sale will impact the season as a whole and will likely reduce Cyber Week performance. “As [Prime Day is] an event that has historically lifted all retail boats, past discounts will cause some shoppers to start earlier and spread out spending this season,” Adobe said in a statement.
Cyber Monday is set to remain the biggest shopping day of the season and year, with a record $11.2 billion in expenses, a 5.1% Increase year over year. By comparison, online Black Friday sales are expected to rise by just a little. 1% Year to $9 billionwhile Thanksgiving sales are expected to fall to $5.1 billiondown 1% YoY. “Those great shopping days are losing their importance as e-commerce becomes a more ubiquitous everyday activity and consumers see discounts continue throughout the season,” Adobe said.
“The shape of the holiday season will be different this year with early discounts in October that will increase spending that would have occurred around Cyber Week,” said Patrick Brown, vice president of growth marketing and information from Adobe in a press release. “Even though we expect to see single digit growth online this season, it is worth noting that consumers have already spent more than $590 billion online this year [from January to August 2022] at 8.9% growth, highlighting the resilience of e-commerce demand.
Adobe also expects discounts to hit record highs this year (over 32%) as retailers face their own set of economic challenges, namely oversupply and declining consumer spending.
Electronics, necessities… and platoons
According to Amazon, top categories during the fall Prime event included toys, home, beauty and personal care, apparel, and electronics. In fact, the retailer said he was selling 8000000 toys alone. Some of the best-selling products included the Macbook Air M1, Bose headphones and earphones, and caspar pillows and mattress toppers. Another very successful product was Platoon bikes, which only recently entered the platform as this brand seeks to expand its reach amid growing pressure on its business.
However, consumer surveys of Numerator show that shopping habits followed a similar trend to the Summer Prime event, with the bulk of shoppers stocking up on basics – 15% of shoppers said they purchased larger items than they would only buy on sale, while 23% got everyday goods that they would have bought anyway.
The average order size during the Prime Early Access sale was $46.68down $60.29 on Prime Day 2022, depending on the numerator, with 29% of buyers say they have taken advantage of the sales to buy end-of-year gifts. Of those who bought gifts, 69% say they less than half finished of their holiday shopping, and 95% say they are likely to shop again on Amazon for additional holiday items in the next Three month.