The U.S. e-commerce market is expected to reach nearly $1.2 trillion in sales this year. Amazon, the largest online retailer in the world, contributed significantly to those projected sales with this week’s Prime Day shopping event. According to Adobe Analytics data, over the course of July 11 and 12, online shoppers spent $12.7 billion with Amazon, marking 6.1% year-over-year growth indicating a growing trend in consumer spending and setting a record for Prime Day. Amazon does not typically provide sales data from Prime Day. However, in this case it did say that July 11 was the biggest sales day in the company’s history. It also said July 11 was its independent retailers’ biggest Prime Day on record.
In this post, I’ll look at some of the early figures and trends from this week’s Prime Day, retailers’ (and bargain hunters’) response to the massive e-commerce event and what it all could mean for this year’s holiday retail sales.
Inflation-weary shoppers lured by deep discounts and exclusive perks
During Prime Day, Amazon offered discounts across various product categories. Electronics showed the most substantial reductions at around 14% off listed prices. Apparel and toys followed closely behind, each averaging a 12% discount. Additionally, 9% off was reported for home and furniture items (although I saw steeper discounts on some items), while the computer category saw an 8% reduction. Appliances, sporting goods and TVs had more moderate deals, ranging from 5% to 7% off their original prices.
These attractive discounts likely contributed to the significant increase in consumer spending during the Prime Day event. According to data firm Numerator, the average Prime Day spend per order rose to $56.64 from $53.14 a year ago. Early data also shows that nearly two-thirds of households shopping on Prime Day placed two or more separate orders, bringing the average household spend to $155.67.
This year, U.S.-based Prime members received early access to some deals starting from June 21. Amazon also introduced invitation-only deals, allowing customers to request an invite to shop for items expected to sell out quickly. Additionally, from June 29 to July 26, Prime members who are approved for a Prime Visa card are eligible for a $200 Amazon gift card. This incentive is not exclusive to Prime Day, as the company offers it periodically throughout the year. Still, the company’s timing of the current offer around Prime Day shows another tactic to lure customers in with even more savings incentives.
Competing retailers take advantage of prime shopping time
According to the Numerator data, 52% of Prime Day shoppers say they purchased items they’d been holding off on buying until they were on sale. However, the proliferation of discount-finding apps such as Honey, Rakuten and CapitalOne Shopping helps shoppers find the best deals regardless of which e-commerce site someone patronizes.
Shoppers are now conditioned to compare deals from various retailers during Prime Day week, which leads to rising competition for Amazon. Prime Day has created a halo effect with rival retailers, including Walmart, Target and Best Buy, each offering significant discounts during specific periods. This week, for instance, Walmart took advantage of the bargain-hunting awareness created by Prime Day to lure more customers to its Walmart+ subscription program by offering a 50% discount on annual membership sign-ups.
Buy now pay later surged during Prime Day
Consumers used buy now pay later (BNPL) payment options in 6.5% of orders during Prime Days, totaling $927 million in revenue—up 20% YoY. BNPL usage continues to be most popular for apparel, furniture/home decor and electronics category purchases.
“For months, consumers have felt the effects of persistent inflation and an uncertain economic environment, and it has pushed shoppers to embrace more flexible ways to manage their spending around the Prime Day event,” said lead analyst Vivek Pandya of Adobe Digital Insights in a statement. “The revenue growth attributed to buy now pay later is a preview of what we can expect in the months ahead, especially as we near the holiday shopping season.”
In a high-interest-rate environment, consumers seeking to manage their cash flow over the holidays may regard BNPL installment loans with zero interest as a more favorable choice than high-interest credit cards. Recent research suggests that BNPL payments in the U.S. will grow 19.0% to reach $113 million by the end of 2023.
For more of my analysis of the forces at play in BNPL, check out my articles on early BNPL players and Apple’s recent introduction of its Apple Pay Later payment option.
A prime barometer for holiday and rest-of-year sales
According to Insider Intelligence, consumer spending will continue to rise into the 2023 holiday season. Inflation is not slowing down consumer spending, but rather has led shoppers to search for the best prices. Large savings events from retailers like Amazon, Target, BestBuy and others will likely lead to adjacent sales for other retailers who seize the opportunity to attract consumers to their own sales events, both online and in-store.
Discount events such as Prime Day impact supply chain planning by influencing demand forecasting, inventory management, supplier coordination, logistics and distribution and returns. By effectively managing these aspects, retailers can optimize their operations, meet customer demands and capitalize on the opportunities presented in peak shopping periods. With appropriate planning, optimizing for these discount periods should cut costs for retailers, allowing them to come out ahead even while offering lower prices to consumers.
It’s unclear whether Amazon will hold an additional Prime Day event this year, as it did in October 2022. Regardless, I expect Black Friday won’t be the only significant savings opportunity for deal seekers this 2023 holiday season and, with the right strategy, retailers of all sizes will benefit from these offerings.
You can watch additional analysis of Adobe Data on Amazon Prime Day from Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy, and Daniel Newman, CEO of The Futurum Group, here on the Six-Five Podcast.
CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.
The airline said Friday the service will be free to passengers.
United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.
Financial details of the deal were not disclosed.
The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.
“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.
The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.
Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:
Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.
Preorder Through Major Canadian Retailers
While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:
Best Buy Canada
Walmart Canada
EB Games (GameStop)
Amazon Canada
The Source
Steps to Preorder via Canadian Retailers:
Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.
3. Sign Up for Notifications
Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.
Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.
4. Prepare for High Demand
Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:
Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.
Final Thoughts
The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.
For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.
Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.
Key Features of the PS5 Pro
The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:
Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.
Optimized Games & Patches
Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:
Alan Wake 2
Assassin’s Creed: Shadows
Demon’s Souls
Dragon’s Dogma 2
Final Fantasy 7 Rebirth
Gran Turismo 7
Marvel’s Spider-Man 2
Ratchet & Clank: Rift Apart
Horizon Forbidden West
These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.
Design & Compatibility
Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.
Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.
Pricing & Availability
The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:
$699.99 USD
$949.99 CAD
£699.99 GBP
€799.99 EUR
¥119,980 JPY
Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.
The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.
Preorder your PS5 Pro and step into the next generation of gaming this holiday season.
