Amazon’s 10th Prime Day Event Breaks Records as Competitors Play Catch-up

Amazon Prime Day returned for the 10th time earlier this week, along with a surge of sales from competing retailers, such as Target, Walmart, TikTok Shop, and Temu. US e-commerce sales over the two-day event reached a record $14.2 billion, an 11% increase from 2023. 

The Success of Amazon’s Annual Prime Day Sale

Prime Day, a sales event exclusively for Amazon Prime Members, ran on July 16 and 17. Just hours after the end of Prime Day 2024, Amazon announced that this year was the “biggest Prime Day shopping event ever”, reportedly saving Prime members billions of dollars over the two days. 

Amazon created Prime Day in 2015, establishing a shopping holiday in one of the slower retail spending seasons of the year. Just like Black Friday, shoppers now anticipate special deals and promotions for this event. 

Prime Day was Especially Relevant this Year for the Deal Seeking E-commerce Shopper 

The most recent Census Bureau data revealed better-than-expected consumer spending in June, supported by an 8.9% year-over-year increase in e-commerce sales. The growth of online sales and preliminary Prime Day day results suggest consumers remain resilient despite persistent inflation and the challenging economic climate.

July’s sales are anticipated to match or surpass June’s flat performance, driven by the surge in promotions across retailers. Bargain-seeking consumers stand to benefit from this heightened competition as e-commerce becomes cheaper, quicker and easier, and retailers vie for increasingly cost-conscious consumers.

Competitors Introduce Promotions in the Weeks Leading Up to Prime Day

Competitors such as Target and Walmart are piloting ways to challenge Amazon’s Prime Day promotion. Last year, Walmart and Target went head-to-head with Amazon by simultaneously offering their own sale events during the same week as the Prime Day promotion. Neither Target nor Walmart saw significant revenue increases during these competing sale events in 2023. Both companies did however have a large increase in the number of people who signed up for their loyalty programs.

Target and Walmart adjusted their approach this summer to compete for budget-conscious Americans. The retailers not only offered deals during Prime Day, but also held their own multi-day sales events prior to Amazon’s Prime Day promotion. 

• Walmart+ Week was held this year in mid-June. It was a week-long sale as opposed to a two day event. The promotion was intended to increase overall membership by offering a limited time 50% discount of Walmart+ memberships, lowering the cost to $49 for the year. Walmart+ Week also rewarded current Walmart+ members with savings on items like gas, car rentals, flights and hotels. Following Walmart+ Week in June, the company slashed thousands of prices for shoppers during an additional “Walmart Deals” event that ran from July 8-11.

Photo Credit: Walmart.com

• Target’s Circle Week took place the week prior to Prime Day from July 7-13. The promotion came a few months after Target relaunched its “Circle” membership program. (Learn more about the program relaunch in our recent blog here.) To participate in the sale, shoppers must be registered for the company’s free Target Circle loyalty program.

Photo Credit: Target.com

Chinese low-cost online marketplaces, such as TikTok Shop and Temu, also introduced summer sales this year, as their presence continues to grow in the US. 

• TikTok’s “Deals For You Days” sale took place between July 9-11. It offered discounts on thousands of products found on its TikTok Shop, a platform that launched in the US in September 2023. The company leverages the social nature of its platform to sell products found in viral videos popularized with the “TikTok made me buy it” hashtag.

Photo Credit: TikTok.com

• Temu, the growing discount online marketplace, conducted its own summer promotion, called “Temu Week”. The event overlaps with Amazon Prime Day, spanning from July 12-18. Temu ran sales offering up to 90% off select products across their site.

Photo Credit: Temu.com

The results of the summer promotions from Target, Walmart, Temu and TikTok have yet to be released. As these results emerge in the coming weeks, they will offer insight into consumer spending and the current state of the American consumer. At McMillanDoolittle, we keep a pulse on the retail industry and consumer trends. Contact us to discuss how your company can stay ahead of the curve in today’s competitive retail landscape.