Amazon Prime Day Spending Expected to Rise 9%

Amazon’s four-day Prime Day sale is set to begin on June 23, with U.S. online spending expected to reach a record $26.3 billion, up 9% from last year. The event is significant as inflation and higher gas prices drive deal-seeking, with strong cross-shopping expected at Walmart and Target. Amazon aims to convert shoppers into Prime subscribers and capture about 60% of event spending, reinforcing loyalty ahead of the holiday shopping season. Shoppers are expected to take advantage of deals on back-to-school clothes and household goods, with discounts in line with last year’s deals. Competitors such as Walmart and Target are holding their own sales, which can boost sales on other sites. Almost 60% of Amazon Prime Day shoppers will also browse Walmart, while 35% will check out Target, according to a consumer survey. Amazon launched Prime Day in 2015 to attract new subscribers, who pay $139 a year for shipping discounts, video streaming, and other benefits. The event helps Amazon lock in shoppers before the holidays and deepen its relationship with existing customers by offering them exclusive deals on Amazon gadgets and other products. About 201 million Amazon shoppers in the U.S. were Prime subscribers as of March, up about 3% from a year earlier. Amazon will capture about 60% of all U.S. online spending during Prime Day, its highest market share since 2019.