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Amazon Prime Day starts slow; Day 1 shoppers drop 41% in US, await better deals as sale extended this time

Amazon extended its annual sale, Prime Day 2025, to four days, up from the usual two in the US

Updated on: Jul 10, 2025 1:07 PM IST
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Shopping major Amazon extended its annual sale, Prime Day 2025, to four days, up from the usual two in the US and some other markets, aiming to give shoppers more time to browse and make purchases. However, sales performance on the first day fell short of expectations in the US, according to a Bloomberg report.

“The prolonged event has encouraged shoppers to do more ‘treasure hunting,’” said an  expert. (Pixabay)
“The prolonged event has encouraged shoppers to do more ‘treasure hunting,’” said an expert. (Pixabay)

Momentum Commerce, which oversees Amazon sales for 50 brands across various categories and price points – including Crocs and Beats – reported that its clients saw a 41% drop in sales in the US on Tuesday compared to the start of Prime Day last year.

CEO John Shea said that shoppers are browsing but holding off on purchases. “Shoppers are waiting to see if better deals show up later,” he said, adding that shorter Prime Days had previously driven quicker buying decisions.

‘Bigger and better’ Prime Day, but is that the issue?

Ahead of the event, Amazon had said: “Amazon Prime Day is bigger and better than ever, expanding to four days of exclusive discounts and savings for Prime members July 8–11. Stay informed with the latest Prime Day 2025 updates and helpful shopping tips to make the most out of this year’s 96-hour sale.”

When asked about Momentum’s data, an Amazon spokesperson initially declined to comment.

Momentum, which generates around $7 billion in annual Amazon sales for clients including Crocs, Beats, and Therabody, is considered to have a broad view of Prime Day trends.

After Bloomberg’s story was published, Amazon responded via email, saying: “Typical of statements made by third-party consultancies that don’t have access to the actual data, these numbers are highly inaccurate.” The company did not specify how the figures were inaccurate.

Also Read | Amazon Prime Day Sale 2025: How GenAI is quietly changing the way India shops

With 4-day sale, shoppers take time

Momentum Commerce believes Prime Day sales could still recover. If enough shoppers make purchases in the final days, total sales may rise 9.1% over last year’s two-day event, according to Bloomberg.

With around $7 billion in annual Amazon sales under management, the firm offers a wide view of consumer trends.

Amazon expanded Prime Day to four days this year, aiming to give shoppers more time to browse millions of deals. But early results have been underwhelming, raising pressure for stronger performance in the final stretch.

The extended format has shifted buying behaviour, said John Shea, Momentum’s founder and CEO. Shoppers are browsing and adding to carts, but waiting to see if better deals appear.

“The prolonged event has encouraged shoppers to do more ‘treasure hunting,’” Shea said. “Shorter Prime Day sales generated more urgency because shoppers worried they’d miss the discounts,” he added.

Still, he is hopeful: “It all hinges on this four-day strategy being a success,” Shea said. “Amazon sacrificed a lot on Day 1. It’s a wildly unpredictable and uncertain year.”

This year’s Prime Day coincides with overlapping multiday promotions from Walmart and Target. “The halo effect of Prime Day this year on other retailers is more significant,” Shea noted.

Wall Street appears optimistic – Amazon shares rose 1.5%, mirroring gains by Microsoft and Alphabet. Gil Luria of D.A. Davidson & Co. said, “They extended Prime Day from two days to four days, so it’s unclear that there really is a dropoff in activity. We’ll find out some when they report the quarter. But it’s very hard to pin down how well Prime Day has gone.”

Since the Trump-era trade war, Prime Day has become a key gauge of consumer confidence. With proposed tariffs of up to 145% on imports – later delayed for talks – many sellers hesitated to offer discounts or skipped the event altogether, Bloomberg previously reported.

‘Prime Day extended because…’

Amazon doubled the length of Prime Day after shoppers expressed a need for more time to browse deals, Prime chief Jamil Ghani told Bloomberg TV.

He noted a strong interest in “everyday essentials” like teeth-whitening strips, calling it Amazon’s fastest-growing category. Ghani added the company was “pleased by the engagement” but emphasised it’s “very early.”

On the first day, shoppers focused on low-cost basics such as dish soap, protein shakes, and pantry items, rather than high-ticket electronics. According to Numerator, which tracked over 7,000 orders, nearly two-thirds of items purchased cost under $20, and only 3% were over $100.

Top-selling products included Dawn dish soap, Premier protein shakes, and Finish dishwasher rinse aid. The average household spent $106, down from $110 last year, with the average item priced at $25.46, compared to $28 previously.

“Consumers appear to be purchasing a greater number of items at a lower price point this Prime Day,” Amanda Schoenbauer, analyst at Numerator was quoted as saying by Bloomberg.

“However, with this year’s sale extended to four days, there is potential for Prime Day 2025 to break previous records.”

Adobe reported that US shoppers spent $7.9 billion online across all retailers on Tuesday – a 9.9% increase from last year’s Prime Day start – with total four-day spending projected to hit $23.8 billion.

(With Bloomberg inputs)

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News/Business/Amazon Prime Day Starts Slow; Day 1 Shoppers Drop 41% In US, Await Better Deals As Sale Extended This Time