Amazon's annual Prime Day shopping event appears to be off to a roaring start in 2024.

Momentum Commerce, a firm managing sales for brands like Crocs and Beats by Dre on Amazon, reports a 13% increase in sales during the first six hours compared to the same period of 2023.

Momentum Points to Strong Prime Day Performance

This early surge is a positive indicator for the overall performance of Prime Day 2024, according to Momentum. Historical data shows sales typically peak within the first few hours of the event, making this initial growth significant.

On your marks, get set, go— Prime Day is finally here! Millions of amazing deals for our Prime members, with more being released through the two day bonanza. Have at it and have fun... https://t.co/KRZTKBsIkQ pic.twitter.com/PXUAR8teE8

— Andy Jassy (@ajassy) July 16, 2024

 

Momentum's analysis holds weight, considering the firm manages billions in sales annually on Amazon for a diverse range of brands.

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Prime Day: A Strategic Play for Customer Loyalty

Launched in 2015, Prime Day serves a dual purpose for Amazon. It attracts new Prime members with its promise of exclusive deals on various products, from gadgets to everyday essentials. Additionally, it encourages existing members to deepen their engagement with the platform by offering significant discounts.

As per Bloomberg, the strategy has proven successful, with Prime memberships in the U.S. reaching an estimated 180 million as of March 2024, reflecting an 8% increase year-over-year.

Prime Day as a Holiday Season Indicator

The success of Prime Day can foreshadow the upcoming holiday shopping season. Industry estimates suggest online sales across all retailers will reach a staggering $14 billion over the two-day event, representing an almost 11% rise compared to 2023.

While other analysts predict slightly lower growth, they still project significant increases, with EMarketer anticipating a 6% rise in U.S. online spending during Prime Day, and direct sales on Amazon potentially growing by 5.5%.

"Consumers continue to spend, but they do so strategically, which can benefit a sale like Prime Day. I think we'll see shoppers buy things like headphones and chargers rather than big-ticket electronics like laptops," EMarketer Inc. analyst Sky Canaves said.

Amazon Prime Day's Latest Controversy

Despite the positive sales outlook, Prime Day isn't without controversy. Senator Bernie Sanders, a vocal critic of Amazon's labor practices, released a report coinciding with Prime Day.

The report alleges that the surge in orders during the event increases the risk of injuries for Amazon warehouse workers due to high work volume and pressure to meet tight deadlines. These claims come as Amazon already faces criticism from the federal government and its home state of Washington regarding potential safety hazards in its warehouses.

Amazon disputes the report's findings, calling them "sweeping and inaccurate conclusions" based on unsubstantiated anecdotes and outdated documents.

With the Prime Day event still ongoing, it remains to be seen if the early sales surge will translate into a record-breaking year for Amazon. However, the initial numbers suggest strong consumer interest and potentially continued growth for the e-commerce giant.

In the meantime, check the 100+ deals you should not miss on the biggest shopping bonanza. From Apple products to smart home devices, your choices are endless for this two-day event.

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