The Amazon Prime Day 2020 ended successfully, and people are happy. Some closed the best deals of their lives while others got the chance to buy the products they always dream. Many are speechless because they didn’t believe that they saved way more than they expected.
Prime members around the world saved over $1.4 billion for the most epic deals and have secured unbelievable discounts. Electronics, health and wellness, toys, arts, and crafts are among the top-sellers.
“We are thrilled that Prime Day was a record-breaking event for small and medium businesses worldwide, with sales surpassing $3.5 billion—an increase of nearly 60% from last year,” said Jeff Wilke, CEO Worldwide Consumer. He also noted that more discounts are waiting for consumers buying for the Holiday season.
Prime Day Expected to Generate Bigger Sales
Digital data provider eMarketer, on its first-ever forecast for the Prime Day, said the event is expected to generate $9.91 billion sales worldwide. That’s a whopping 43% increase YOY!
Some sellers have already predicted an increase in sales after Amazon decided to move Amazon Prime 2020 from July to mid-October since this can also be a chance for people to shop for the incoming Holiday seasons. In August 2020, Children’s workbook company Channies LLC claimed that the sales are up 250% as the school season approaches.
In March 2020 survey conducted by Profitero, 37% of digital sellers worldwide felt that Amazon’s decision to move Prime Day busted out plans and the sales are not sure. However, 56% remained optimistic.
Small Sellers are Delighted
Amazon’s brands such as Echo, Ring, and Eero are heavily discounted and have tremendously made sales during Prime Day. The company said Echo Dot, the cheap but powerful smart speaker, is the most popular.
Big labels also took advantage of the event. Tech companies like Apple, Samsung, and Sony slashed the original price tags of their products in the participation of the overwhelming shopping days.
However, the biggest winners are third-party sellers, who don’t have much budget for promotion. Many claimed a drastic increase in their sales and are delighted to announce record-breaking tallies. CNBC revealed that these sellers earned more than $3.5 billion during this year’s Prime Day shopping event. It’s a 60% spike compared to the last year’s data.
Prime Day by Numbers
Amazon launched Prime Day in 2015 in celebration of the company’s 20th birthday and to give way to customers who can’t get enough of the mind-boggling sales and deals. The event was joined by people from 9 countries including USA, Spain, Japan, Italy, Germany, Canada and France. Later, countries like China, Belgium, Australia, Mexico, Brazil and many more countries joined the fun.
Since then, it has grown exponentially.
This year, Amazon Prime membership reached 142.million. Due to the pandemic, the prime membership accounts grow by 14.9%, and by 2022, Amazon Prime member accounts will exceed 150 million.
Photo by eMarketer
Third-party sellers is actually a big chunk of Amazon, contributing up to 58% of the company’s total merchandise sold.
The Coronavirus Pandemic became a factor in the increase in sales. Since people are always home, many opted to buy their wants and needs online.
Chinese Sellers Dominate
In terms of geographical sales, it appears that the Chinese sellers are the happiest of all.
Newly-launched smartphone Nord by the Chinese tech giant OnePlus is the highest selling smartphone during the Prime Day sale. Other smartphone units like Xiaomi’s Mi and Redmi, Oppo, and Honor also dominated the sales.
Apple’s iPhones and Samsung phones also made sales. However, there are significant differences between the top sellers.
Though huge Chinese companies made sales and have kicked out the competition, small and medium entrepreneurs from China also claimed a substantial amount of sales. Some were super delighted to the point of posting screenshots of their seller’s account. One showed an eye-popping $3.5 million in sales and the screenshot was taken at about 3:00 p.m., which is only half of a Prime Day. It is estimated that the seller earned about $5-6 million in just a day. Well, there’s two days in the Amazon Prime, right?
Photo by Weixin
The Professor of Amazon already explained why Chinese sellers dominate Amazon. Among the things listed are easy availability of Chinese stocks, obsession with research and competition, love for branding, innovation, creativity, the ability of negotiation, and many more are some of the factors why products from China are well-loved.
Currently, there are 2.5 million sellers in Amazon and 49% of the top sellers are from China, which is 2% higher than their American counterparts. They are attributed to billions of sales annually. The top Amazon seller, who is from China, is estimated to earn $2.6 billion in a year.
This increase of Chinese sellers is because of the innovative program called Fulfillment by Amazon (FBA), which eliminated the slow and expensive shipping costs that allowed international sellers showcase their wonderful products.
Amazon Gives Importance to Small Sellers
Small and medium enterprises stood a fighting chance against top-rated large companies on Amazon compared to other online shopping platforms such as eBay. Why is that so? Because Amazon gave importance to independent sellers opening an equal battlefield. It opened the best tools and programs such as inventory management, shipment tracking, analytics, and many more.
This gives sellers guidance and solutions that even Amazon didn’t imagine. Sales are up and enterprises are happy.
Not just that, Amazon also provided discounts such as buy one take one promotion for small-scale entrepreneurs that have truly helped in sales.
Every Day is Better
Amazon, which is guided by the principle of customer obsession, will continue to design Prime to make lives better. It will continue to invest in programs, software, algorithms, and many more to provide the greatest platforms for both sellers and consumers.