Amazon’s Prime Day sales dropped 41% on the first day compared to last year, according to retail consultant Momentum Commerce, but an Amazon spokesperson called the numbers “highly inaccurate.”
- The drop in first-day sales might be due to consumers holding off on purchases, hoping for better deals as the four-day event progresses.
- Amazon VP Jamil Ghani said the company is “pleased by the engagement” and that it’s “very early” in the event.
- Amazon extended Prime Day to give shoppers more time to discover deals, and this year’s event offers more 50% off deals than last year.
Despite the reported drop, retailers still raked in $7.9 billion in online sales during the first 24 hours, a nearly 10% increase year-over-year, according to Adobe Analytics.
Why it matters: Prime Day, along with competing sales like Walmart+ Week, is a significant test for consumer spending amid global tariffs, sliding consumer confidence, and economic uncertainty.
The details:
- U.S. online sales jumped 9.9% year-over-year to $7.9 billion on Tuesday, making it the biggest e-commerce day so far this year.
- Home and outdoor goods showed strong demand, while beauty and household essentials had softer demand early on.
- Adobe anticipates online sales to reach $23.8 billion across all retailers during the 96-hour event, equivalent to two Black Fridays.
The uncertainty: This year’s Prime Day is happening as retailers and consumers grapple with the effects of President Trump’s unpredictable tariff policies.
What they’re saying:
- “Early Prime Day numbers might look soft compared to last year’s surge, but it’s too early to call the event a miss. With four days instead of two, we’re seeing a different rhythm, and consumers are spreading out their purchases.” – Kashif Zafar, CEO of Xnurta
- Amazon CEO Andy Jassy said the company hasn’t seen prices “appreciably go up” on its site due to tariffs, but some third-party sellers have considered or already raised prices on products manufactured in China.
What’s next: As Prime Day continues through Friday, it remains to be seen how total sales will compare to last year’s event and how consumer spending will be impacted by economic factors.