Amazon PD will be diverted to multiple parties. If sellers want to increase sales, they can only offer low prices?

This year, affected by inflationary pressure, most American consumers are unusually sensitive to discounts, and major American retailers will naturally not miss this opportunity.

It is understood that in July this year, many US retailers have launched their own discount promotions, and the timing of each event coincides with Amazon's Prime Day.

Two days ago, American retail giant Macy's also announced its own discount event "July Black Friday", which will start from this Thursday to July 12.

During this period, Walmart, Target, Best Buy, Nordstrom, Sur La Table and Wayfair all have their own discount activities, and the discounts are all amazing.

Especially Walmart’s Walmart+ Week, which not only offers big discounts but also starts two days earlier than Amazon, is bound to have a certain impact on Prime Day.

In fact, over the past decade, summer promotions have become a common practice among major retailers because they can effectively improve the mid-year sales decline.

While deep discounts offered by retailers squeeze their profit margins, they are a necessary strategy to stay competitive with consumers who have become accustomed to discounts, according to a report from the Alvarez & Marsal Consumer and Retail Group.

Adobe Analytics predicts that Amazon's two-day Prime event will bring in $13.1 billion in online sales , up 9.5% from last year .

However, individual consumer spending may be down. According to a survey of 1,000 adults by RetailMeNot, Prime Day shoppers plan to spend an average of $250 this year, down from $388 in 2022 and $594 in 2021.

It can be seen that discounts will be more critical this year than in previous years because Americans' budgets for non-essential items have been greatly reduced, especially high-priced items that may need to be purchased in installments .

Take Amazon as an example. The e-commerce giant said that the discounts for this year's PD event are greater than ever before. Macy's said that the discounts on various products this year will be between 20% and 75%. Target and Best Buy are also very sincere, offering discounts of up to 50% on various big-name products.

From the seller's perspective, if PD wants to boost sales this year, it must offer sufficiently attractive discounts, but doing so means that profits will likely be lost.

In addition, seven retail giants other than Amazon are also eyeing this huge traffic cake. Various low-price discounts will surely dazzle consumers, and Amazon's traffic will definitely be divided a lot.

Although it is still difficult to judge which retail giant will have the last laugh, there is no doubt that consumers who actually save money are the biggest winners of this shopping feast.

Amazon

Prime Day

Walmart