Amazon.Com, Inc (NASDAQ: AMZN) initiated its fall sale for Prime members aiming to capitalize early on the anticipated subdued holiday shopping season.
U.S. online sales will likely grow by 4.8% to $222 billion during November and December, a rate higher than the previous year but significantly lower than the pre-pandemic growth.
Consumers face persistent inflation, increasing debt, and diminishing savings, leading to cautious spending.
The two-day sale will likely witness consumers seeking bargains and comparing prices across various platforms.
Retail giants like Walmart Inc (NYSE: WMT) will also probably offer competitive deals, leading to deep discounts.
The inflationary environment and the need for cost management are driving this trend, Bloomberg reports.
Buy-now-pay-later services will likely reach a new high this holiday season as consumers navigate the challenges of increased prices and borrowing costs.
Amazon's Prime subscription, priced at $139 per year, offers members shipping discounts, video streaming, and other benefits, and events like these aim to attract new subscribers and retain existing ones.
Amazon's Prime Big Deal Days, previously known as Prime Early Access Sale, is expected to see consumers focusing on discounted items rather than luxury products. Adobe Inc (NASDAQ: ADBE) anticipates total U.S. online sales to hit $8.1 billion during the sale, marking a 6.1% increase from the previous year.
A survey by RetailMeNot revealed that 64% of shoppers are ready to begin their holiday shopping in October if the discounts are attractive. About 58% plan to participate in Amazon's Big Deal Days, although the average spending will likely be lower than the Prime Day sale in July.
U.S. consumers spent $6.4 billion online in the first 24 hours of its 2023 Prime Day, up by 6% year-on-year.
Adobe and Insider Intelligence previously estimated the Y/Y sales to rise between 9.5% - 11%.
Price Action: AMZN shares traded higher by 0.80% at $129.30 on the last check Tuesday.