Amazon.com Inc (AMZN  ) saw its Prime Day sales increase by about 13% in the first six hours compared to the same period last year, according to Momentum Commerce.

"Consumers continue to spend, but they do so strategically, which can benefit a sale like Prime Day," Bloomberg cites Sky Canaves, an analyst at eMarketer Inc.

Canaves expects shoppers to prioritize smaller items like headphones and chargers over big-ticket electronics like laptops.

Adobe Inc (ADBE  ) estimates that online sales across all retailers will reach $14 billion over the two-day event, an almost 11% increase from last year.

eMarketer projects a more modest 6% growth, with U.S. online spending hitting $13.8 billion during Prime Day and Amazon's direct sales rising by 5.5% to $8.2 billion.

According to Mike Brenner, research analyst at FBB Capital Partners, investments made during the Covid-19 pandemic have improved efficiency, Bloomberg reports.

These improvements could lead to faster growth and better margins, shifting investor focus from revenue to overall growth and profitability.

Jefferies analysts highlighted that increased efficiencies in Amazon's retail business could significantly boost its EBIT margins from 2.4% in 2022 to 9.9% this year.

JPMorgan analyst Doug Anmuth predicts a total gross merchandise value of $12.4 billion, a 12% increase, with $7.9 billion in total retail net sales. Of that, $5.8 billion was generated with Prime Day.

JPMorgan expects Amazon to surpass Walmart Inc (WMT  ) as the largest U.S. retailer this year.

Price Action: AMZN was up 0.19% to $193.08 at the last check on Tuesday.