Prime Day has firmly established itself as a significant event in the e-commerce calendar, offering consumers unparalleled discounts across a range of retailers.
The Executive Magazine presents a detailed analysis of the 2024 Prime Day event, drawing on data from Adobe Analytics. This report provides a comprehensive overview of U.S. e-commerce by analysing over one trillion visits to retail sites, encompassing 100 million SKUs and 18 product categories. Adobe Analytics, a part of Adobe Experience Cloud, is a trusted tool for over 85 percent of the top 100 U.S. internet retailers, offering crucial insights into consumer behaviour and online shopping experiences.
Prime Day Sets New Revenue Records
Prime Day 2024 witnessed unprecedented consumer spending. On July 16, shoppers spent $7.2 billion, reflecting an 11.7 percent year-over-year (YoY) growth. The momentum continued on July 17 with $7 billion in sales, marking a 10.4 percent YoY increase. The total for the two-day event reached $14.2 billion, an 11.0 percent rise from the previous year, establishing a new benchmark for Prime Day sales.
Mobile commerce played a crucial role, with nearly half (49.2 percent) of all online purchases made via mobile devices. Across both days, mobile spending reached $7 billion, an impressive 18.6 percent YoY increase.
Back-to-School and Product Upgrades Fuel Growth
Several factors contributed to this year’s robust growth. Notably, the timing of Prime Day, closer to the start of the school year, spurred back-to-school shopping. Sales of products such as backpacks, lunchboxes, and stationery soared by 216 percent compared to daily sales in June 2024. Additionally, spending on kids’ apparel surged by 165 percent in the same period.
Consumers also took advantage of Prime Day to refresh their electronics and home furnishings. Online sales in the electronics category saw a 61 percent increase over the two-day event, driven by significant growth in items like tablets (up 117 percent), televisions (up 111 percent), and headphones (up 105 percent). Fitness trackers, computers, smartphones, and cameras also experienced substantial increases.
In the home, furniture, and appliances sector, sales of small kitchen appliances rose by 76 percent, while kitchenware and cookware increased by 25 percent. Sales of mattresses, home office furniture, and bedroom furniture also saw notable upticks. In the apparel category, sales of suits grew by 36 percent, with outerwear, footwear, and accessories each increasing by 17-19 percent.
Key Insights into Consumer Behaviour and Retail Strategies
Prime Day 2024 also highlighted several important trends in consumer behaviour and retail strategies.
Buy Now Pay Later (BNPL): This flexible payment option accounted for 7.6 percent of online orders during Prime Day, driving $1.08 billion in spending, a 16.4 percent YoY increase. This trend indicates a growing consumer preference for payment flexibility.
Discounts: Retailers have leveraged discounts to drive growth amid uncertain demand. Prime Day featured significant discounts across various categories, with electronics seeing the highest discounts at 23 percent off (up from 14 percent in 2023). Apparel, home furnishings, televisions, toys, appliances, sporting goods, and computers also experienced steeper discounts compared to last year.
Impact of Social Media: Social networks played a critical role in driving sales, contributing to an 11.1 percent increase in revenue, just behind display advertising at 12.5 percent. Other significant drivers included direct traffic and affiliate/partner marketing.
Curbside Pickup: This convenient fulfilment method was utilised in 18.9 percent of online orders, slightly down from 20.2 percent last year, underscoring its continued relevance.
E-Commerce Forecast and Inflation Impact
Boosted by Prime Day, Adobe projects $84.4 billion in total e-commerce spending for July 2024, an 8.2 percent YoY growth. Looking ahead to the holiday season, Adobe forecasts $732 billion in online spend for 2024, a 7.3 percent increase YoY.
Interestingly, the strong consumer spending this year is attributed to new demand rather than price increases. The Adobe Digital Price Index, tracking online prices across 18 categories, shows a 4.2 percent YoY decline in June 2024, marking 22 consecutive months of falling e-commerce prices. This suggests that if inflation were considered, the actual growth in consumer spending would be even more substantial.
Prime Day 2024 not only set new records but also highlighted evolving consumer trends and the dynamic nature of the e-commerce landscape. The insights from Adobe Analytics provide valuable guidance for retailers navigating this competitive market.
