Tech

What Amazon Prime Day Data Could Tell Retailers About 2023 Holiday Shopping

Published

1 year ago

July 14, 2023

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.

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Tech

Ottawa orders TikTok’s Canadian arm to be dissolved

Published

6 days ago

November 6, 2024

Anne Joseph

The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

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Health

Here is how to prepare your online accounts for when you die

Published

3 weeks ago

October 24, 2024

Anne Joseph

LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Tech

Google’s partnership with AI startup Anthropic faces a UK competition investigation

Published

3 weeks ago

October 24, 2024

Anne Joseph

LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

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