Prime Day 2019 is now Amazon.com Inc.’s biggest sales event ever, surpassing its previous Prime Day, Black Friday and Cyber Monday sales events.
Amazon (No. 1 in the Internet Retailer Top 1000 and No. 3 in the Online Marketplaces database) didn’t provide specifics on sales or growth of its fifth-annual Prime Day. However, based on early analysis of marketplace sales, Amazon’s top-selling product categories and key site metrics, like conversion rate and traffic, Internet Retailer estimates sales hit $7.16 billion globally over the 48-hour period. That’s up 71% from the $4.19 billion sold during the 36-hour sales event last year.
While Amazon doesn’t disclose total gross sales, it did say the retailer sold more than 175 million products during the two-day event (July 15-16). That compares with 100 million products sold during Prime Day 2018.
Amazon also said sales of products from its marketplace sellers crossed $2 billion. Comparatively, last year Amazon said its marketplace sales “far exceeded” $1 billion.
Internet Retailer estimates marketplace sellers’ sales only account for about a third of Prime Day sales. This breakdown is different from Amazon’s annual gross merchandise sales, for which marketplace sellers accounted for 58% in 2018. The share of marketplace sales is different on Prime Day because Amazon typically uses this sales event to promote its own products. For instance, top-selling products worldwide were Amazon’s Echo Dot and Fire TV Sticks. Sales of marketplace products were $2.29 billion for Prime Day 2019, Internet Retailer estimates.
“Our sense is that this year, Prime Day is—for the first time—focused dramatically on products that are either Amazon’s own, or sourced by them through a direct relationship [which would count as Amazon’s first-party sales as opposed to marketplace sales],” says Matthew Berk, CEO of coffee beans retailer Beanbox. Last year, the focus was more on introducing other brands, but that’s shifted.
The main reason for the 71% growth in sales, which is higher than what Internet Retailer projected, is because the sale was 12 hours longer than last year. There also weren’t any major technical issues with Amazon’s site like last year’s event. In addition, there were 10 million more Prime members at 105 members this year than last year, according to estimates from Consumer Intelligence Research Partners (CIRP). Prime membership is Amazon’s $119 annual loyalty program that gives shoppers free two-day shipping, among other benefits. Prime Day deals are only eligible for Prime members.
On July 15, the first this year’s two Prime Days, Amazon signed up more new members of its Amazon Prime loyalty program than any previous day and nearly matched that record on July 16, the retailer said. Prime members spend more than twice as much on the site each year than non-Prime members, according to CIRP.
Based on Internet Retailer’s estimates, Prime Day 2019 surpassed online sales on Black Friday 2018 (the Friday after Thanksgiving). Will Prime Day sales affect Cyber 5 2019 sales? The data has yet to suggest that. It may be that the bulk of Prime Day shopping is consumers purchasing goods for themselves rather than holiday gifts. Here’s where Prime Day falls among the largest U.S. shopping holidays.