Amazon (AMZN, Financial) extended its Prime Day sales event from two to four days this year in the U.S., aiming to attract more consumers amid tariff impacts and economic uncertainties. However, according to sales agency Momentum Commerce, the event's first day saw a 41% drop in sales compared to last year. The agency, which manages online sales for brands like Crocs, Beats, and Therabody, reported that consumers are placing items in their carts but waiting for better deals.
Momentum Commerce's CEO, John Shea, noted that extended sales can reduce urgency, as shoppers may delay purchases in anticipation of better discounts. Despite the slow start, if more consumers purchase in the latter days, the four-day sales could still surpass last year's two-day event by 9.1%.
Wall Street remains optimistic, with Amazon's stock rising nearly 1.5%. Analyst Gil Luria from DA Davidson & Co. suggested that the extended event's success will be clearer in quarterly reports. Amazon declined to comment on Momentum Commerce's sales figures, labeling them inaccurate.
Numerator data indicates that most items sold on the first day were under $20, with only 3% priced over $100. Adobe reported a 9.9% increase in total online spending across all retailers, reaching $7.9 billion. They project Amazon's four-day event could total $23.8 billion in sales.
