Amazon needs to improve its discounts to prevent a fall in Prime Day participation, according to GlobalData.
The consulting company’s senior retail analyst Eleanor Simpson-Gould explained Amazon needed to offer “unmissable deals on top brands” over the discounting event, which is held on 11 to 12 July, to increase involvement in the event, due to “many retailers already advertising a plethora of discounts”.
She pointed out: “The proportion of consumers with access to Prime membership has been accelerating since 2019, up 24.7ppts to reach 67.8% in 2022, according to GlobalData’s Prime Day Surveys.
“Yet the proportion of consumers reporting that they bought something during Amazon Prime Day has not kept pace – Prime Day participation has only risen 13.6ppts over the same period”.
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According to the data analytics company, while consumer sentiment in terms of retail spending has shown “early signs of improvement,” the online non-food market is only predicted to experience “modest growth,” meaning Amazon will struggle to entice shoppers.
Simpson-Gould added: “As the UK’s inflationary hangover will be slow to ease, Prime Day discounts will be scrutinised with a finer lens than ever before.
“Amazon’s purchasing power must come into play to secure deeper discounts than competitors”.