Amazon’s artificial holiday sale is underway in Australia.

Amazon Prime Day was launched in 2015 and first held in Australia in 2018. At the time it was the company’s biggest sales day since launching a local presence in Australia in December 2017.

The ecommerce giant, which recently celebrated its 25th anniversary, is offering heavily discounted products with free shipping for Prime Members across 18 countries for 48 hours.

Amazon Prime Day 2019Amazon does not disclose sales figures for Prime Day but analysts from Coresight Research estimate Prime Day accounted for about 1.4 per cent of Amazon’s annual sales last year.

This year Coresight predicts Amazon could generate approximately US$5.8 billion in global product sales on Prime Day, up by around half from its US$3.9 billion estimate for 2018.

In comparison, Alibaba reported US$30 billion in sales on its platforms during Singles’ Day in 2018.

According to Coresight, the growth will be supported by the event being extended to 48 hours, up from 36 hours in 2018.

And Australians get an extra 17 hours (until 5pm AEST on 17 July) to shop from the US Global Store, taking the sales period to 65 hours.

The sale is a major event for Amazon’s third-party marketplace sellers, which generated US$1.5 billion in sales globally last year on Prime Day.

And retailers outside the Amazon ecosystem are also expected the benefit from a halo effect on Prime Day. Research from Adobe predicts Amazon’s competitors will see revenue jump by 79 per cent during this year’s Prime Day(s).

To access the discounts, new customers in Australia can try Prime with Amazon’s 30-day free trial, and then join Prime for AU$6.99 a month, or save 30 per cent with an annual membership at AU$59.

Greg Portell, lead partner in the global consumer and retail practice of A.T. Kearney, said the sale is likely to drive more Amazon Prime sign-ups.

“Amazon hasn’t yet reached a saturation point in terms of subscriber growth and will leverage this year’s Prime Day to add subscribers. Data from A.T. Kearney’s Prime Day survey last year showed  meaningful percentage of purchasers were new to Prime.  We would expect this to continue this year.”

Portell said the broader retail ecosystem would also benefit on Prime Day, as consumers “have been conditioned by retailers to need a trigger to purchase.”

“If Prime Day is a trigger, Amazon’s highly-visible profile will expand the impact to the entire retail sector rather than just a single retailer. It will be a very active day for online shopping, potentially rivalling Cyber Monday. Competitors will look to siphon off demand and ambush Amazon’s traffic,” he said.

“Amazon is increasingly focused on share-of-wallet which will put pressure on their merchandising capabilities.  Retailers have looked to broaden consumer category engagement during sales events – bring consumers into the store for one category, but sell them across multiple categories. Prime Day will give Amazon an ability to show their capacity to do this as traffic spikes.”

Previous post

The pressure on analytics professionals

Next post

COVER STORY: Buy Now Pay Later debt will soon hit $1 billion. How Sustainable is the Model?

Join the digital transformation discussion and sign up for the Which-50 Irregular Insights newsletter.