Tag: prime

Amazon’s Prime Day boosted sales by 60 per cent

amazonOnline retailer Amazon claims that its “prime day” resulted in a boost of sales of 60 percent worldwide.

Despite early glitches, the retailer said it recorded the largest daily sales for Amazon devices on Tuesday, helped by heavy discounts. The Fire TV Stick was its best-selling device.

Orders rose by more than 50 percent in the United States, Amazon said. Orders placed on the company’s mobile app doubled.

Amazon did not provide total sales figures for the event, which was open only to members of its $99-per-year Prime subscription service.

However it might not have gone as well as Amazon hoped. Analysts noted that the rate of deals selling out was a lot slower than expected, meaning that Amazon was expecting the demand to be higher. However the number were still pretty good.

If orders jumped 60 percent over last year, that could mean sales in excess of $650 million on this year’s Prime Day

Citi analysts had projected up to $1 billion in sales from Prime Day. However, a snag that resulted in some customers being unable to add discounted items to their shopping carts could have affected sales.

Amazon’s potential sales from the event pales in comparison with the more than $14 billion of total value of goods transacted during Alibaba’s Singles’ Day shopping festival in China in November.

Piper Jaffray’s Gene Munster said global unit sales growth of more than 60 percent outperformed the brokerage’s estimate of a 37 percent growth.

The sale is also expected to drive shoppers to the Prime service, which offers original TV programming and access to digital entertainment products such as Prime Music and Prime Video, as well as one-hour delivery of purchases.

Benchmark Co analyst Daniel Kurnos said he expects Prime Day to have added over 6 million new Prime members worldwide and to boost year-over-year revenue growth by 300 basis points.

Amazon’s Prime Day miffs customers

amazonAmazon’s Prime day failed to live up to the hype generated sending a strong message to e-retailers of the dangers of overreaching customers’ expectations.

Merchants participating in Amazon.com’s much-advertised “Prime Day” sale saw an 80 percent rise in US sales from a year earlier but it appears that the event caused more trouble that it was worth.

The one-day sale on Wednesday for members of Amazon’s $99 per year Prime subscription service is similar to an annual sale by China e-commerce merchant Alibaba.

Wal-Mart panicked and also launched an online sale, fearing that the Prime Day would lose it customers.

Amazon was trying to create a Black Friday frenzy and partly managed it., Amazon did not give detailed sales numbers but said it sold 35,000 Lord of the Rings Blu-Ray sets in 15 minutes and that a Kate Spade handbag was sold out in a minute.

However Amazon shoppers were completely underwhelmed by the experience. Twitter polls show that Prime Day deals were selling out too quickly and complained that deals were not attractive enough.

Other shoppers used the #PrimeDayFail hashtag on Twitter. One user tweeted: “Hey @Amazon, #PrimeDay is not Black Friday in July. It’s April Fools’ in July. #primedayfail”.

Adobe Digital Index said that 50 percent of overall sentiment related to Prime Day on social media was about disappointment.

“Much of the disappointed chatter focused on the lack of blockbuster deals,” it said, adding that users cited sales of less desirable items like socks and towels.

“It was a sale of Amazon’s junk, there was nothing exciting there, and the limited ones which were s were either sold out in seconds,” one irate shopper said. “It was a missed opportunity for Amazon… they should have offered special deals and an across the board discount.”

An Amazon spokeswoman said the retailer was listening to its customers and planned to add more deals like TVs next time.

Wal-Mart launched a three-month online sale of some 2,000 items on Wednesday. The company said customers “shouldn’t have to pay a fee” to get low prices, a dig at Amazon, which it did not name. Deals should be around for more than a single day, a spokesman