Thursday, 18 October, 2018

Amazon Prime Day shopping topped $4 billion, analyst estimates

Home Border Business Perryman Prime Time

Border Business Perryman Prime Time
By M. Ray Perryman Home Border Business Perryman Prime Time Border Business Perryman Prime Time By M. Ray Perryman
Russell Knight | 22 July, 2018, 03:44

Amazon said this week's Prime Day was a massive success.

Singapore Prime members also received "thousands of units of free gifts and samples" including Glucose monitors, Authentic Tea House Oolong tea, Dettol soap, Dove shampoo and Carling beer, and enjoyed significant savings through credit card promotions, said Amazon. Haq Se Single, Chacha Vidhayak Hain Humare, and hit Bollywood movies Padmaavat and Sonu ke Titu Ki Sweety, have been particular hits on-demand, said Amazon.

FBN's Deirdre Bolton on the tech glitches during Amazon's Prime Day. This year, some 67% of Prime Day shoppers shopped on their mobile phone, with the remainder shopping via desktop.

Amazon is hoping for record Prime Day sales and sign-ups to Prime memberships in Australia, even after its website crashed at the beginning of the event. The company offered over one million deals for the event, leading to sales of over 100 million products.

Amazon's website and app malfunctioned early on this week's annual blow-out sale, but the company still managed to surpass all prior sale records in its 24-year history, including Black Friday and Cyber Monday sales. "Amazon's stock might seem pricey at 140 times this year's earnings, but it remains an essential long-term play on the e-commerce and cloud markets". But voice-driven purchases have yet to catch on, with only 1% of shoppers indicating they used their Alexa device to place a Prime Day order.

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"This has been a growing change in Amazon's business model because today, it's not enough for retailers to compete only online".

Amazon's servers couldn't handle the flood of traffic from shoppers during Prime Day - and the company cut off all global traffic and launched a backup landing page in an effort to fix the problem, according to internal documents obtained by CNBC. This is an especially important target for Amazon, as Prime members spend on an average five times more than non-Prime members, per a Morgan Stanley report. "Count on Prime Day 2019 to continue this trend, which is great news for all retailers".

Prime Day also put the spotlight on small and medium-sized businesses that sell on Amazon's platform.

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