Amazon.com Inc (NASDAQ: AMZN) stated that its second Prime Day promotion conducted annually was the largest sales of the online retailer ever. In this year’s Prime Day, global orders edged higher by over 60 percent in comparison to the previous year.
The online retail giant created the Prime Day promotion to attract consumers to register for its membership program that costs $99 per year. The Prime membership includes free 2-day shipping, together with video and music streaming.
Although the number of consumers who registered this time is not revealed, the online retailer sold a record number of its own devices. The deals for Kindles, tablets, as well as the Echo speaker were posted all over the website’s homepage. Amazon’s Fire TV stick, which is for video streaming, was this year’s best-selling Amazon device and aided the ecommerce company to triple the Prime Day sales of in-house gadgets this year.
The main objective is to establish a unique shopping experience and good digital ecosystem, which will lure consumers to Amazon.com.
According to Monness Crespi Hardt & Co. analyst Mr. James Cakmak, “Whether it’s video, e-readers, restaurant delivery, it all comes down to how much Amazon is part of your daily life.”
“The more touch points Amazon can create with your daily routine the more it can monetize on membership,” he further added.
Even though some consumers experienced some technical issues earlier, the glitches were resolved and bullish momentum started to build up throughout the day. In the United States, which is the largest market of Amazon, Prime Day sales exceeded the results from the previous year by over 50 percent.
Cakmak pointed out that, “It’s a stellar number. They’re well on their way to accelerating their mission of augmenting Prime usage.”
According to the Consumer Intelligence Research Partners (CIRP) in Chicago, subscribers of Prime membership spend approximately $1,200 on a yearly basis, in comparison with the $500 spending of non-subscribers.
Since the last Prime Day, the ecommerce titan added 19 million Prime members from the United States. The research firm stated that as of June 30, there are already 63 million members.
Bloomberg Intelligence analyst Poonam Goyal stated that, “If more Prime members shop more with Prime it pulls users away from everyone else.”
“Not just Wal-Mart and Target, but apparel retailers too,” he further added.
By late Tuesday, the online retailer began to witnessed an increased number of sales, with orders for third party merchants surging by 30 percent, in comparison to the past year. This development is most likely supported by global demand. Amazon.com Inc depended on thousands of these third party sales in order to fuel the rally this year, providing a wider range of inventory and more deals.
Over 2 million toys and a million pairs of shoes were bought, and up to 90,000 televisions were sold.
As of 11:03 AM GMT -4 on July 14, the stock of Amazon is changing hands at $746, up by 0.48 percent or 3.54.