Amazon (Amazon) The most anticipated trading event of the year is here.
The e-commerce giant on Tuesday kicked off Prime Day, its annual two-day promotional event that began nine years ago as a way to highlight the value of Prime membership by offering members discounts and perks.
“When it comes to Prime Day, Amazon still dominates and drives the lion’s share of sales,” eMarketer analyst Skye Canaves told Yahoo Finance (video above). “We expect U.S. consumers to spend roughly $14 billion online over the two-day period.”
According to eMarketer, last year’s Prime Day brought in $13 billion in sales, 60% of which came from Amazon, with the rest coming from third-party sellers. Amazon said Prime members purchased more than 375 million items during the event last year, making it its “biggest Prime Day event ever.”
This year’s Prime Day is expected to beat that record, despite slower revenue growth, and about 80% of online shoppers are hoping to find the best deals of the year, according to a survey conducted by marketing platform Sky.
target(target), Walmart (World Trade Center), Best Buy (BBY), Costco (FeeOther retailers have followed Amazon’s lead by running competing sales to boost sales. For example, during Target’s Circle Week, a seven-day sale from July 7-13, the company offered members of its loyalty rewards program up to 50% off clothing, skincare, fragrance, technology, and food.
The shopping fest comes as consumer spending remains strong despite concerns about a slowing U.S. economy. Josh Shaffer Retail sales released on Tuesday were flat in June, better than the expected 0.3 percent decline.
The beauty sector is expected to shine
Canaves expects consumer staples and beauty products to outperform other categories.
“Beauty is a category where Amazon’s online sales continue to outpace the overall e-commerce growth rate for the category,” Canaves said. “Beauty is such a strong and resilient category, and brands are eager to get on Amazon because so many consumers are looking for beauty products.”
Amazon is growing its market share in health and beauty, one of its core products. Fastest Growing Product CategoriesUlta (Ulta) and Sephora (LVMUY), Morgan Stanley said Amazon Overtaking Walmart Our goal is to become the top beauty retailer in the United States by 2025.
The expansion of Amazon’s product selection is also part of Amazon’s push into beauty, as the company has recently attracted more premium brands, including Clinique and Kiehl’s, Canaves said.
According to 2023 McKinsey & Company reportThe trend towards “premiumisation” in beauty and fragrance is expected to continue over the next few years: McKinsey predicts that the prestige beauty category will grow 8% annually between 2022 and 2027, compared to mass beauty’s growth rate of 5%.
It’s a top brand that previously skipped opening a storefront on Amazon in order to reimagine the marketplace.
“If beauty brands don’t sell, [products on Amazon]If they do, third-party resellers will,” she said.
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