Inflation-weary Amazon shoppers snap up essentials on Prime Day

Instant Pots and Roombas tend to be in high demand during Amazonprime day event. But this year, consumers were more interested in dishwasher containers, diapers and snacks.

Looking at some of most popular products During Amazon’s two-day discount promotion, which ended late Wednesday night, you can see how record high inflation is changing consumer spending habits.

The consumer price index, a broad measure of the prices of goods and services up 9.1% in June, 41-year peak. As prices rise, consumers shrink their wallets and cutting discretionary spending.

Analysts warned that inflation could dampen consumers’ willingness to shell out for a new TV or Echo smart speaker during Prime Day.

On Monday, JP Morgan wrote in a note to clients that they forecast “slower growth in Prime Day’s additional revenue given the challenging macro environment.” Firm analysts forecast total Prime Day revenue of $5.6 billion, up just 5% year-over-year, compared to 50% year-on-year growth in 2020 and 9% year-on-year growth. in 2021.

So far, Prime Day’s results have been better than feared. Company said Thursday’s Prime Day saw 300 million items sold, up from 250 million the previous year, making it the “biggest” in Amazon’s history.

Total US online retail sales during the Amazon Prime Day event topped $11.9 billion. According to Adobe Analytics, this is 8.5% more than the total number of e-commerce transactions made during last year’s event. Other retailers like Best Buy as well as Target sought to capitalize on the Prime Day frenzy by launching their own competitive events.

While inflation doesn’t seem to have affected sales, it may have affected what products consumers buy. According to Melissa Burdick, president of Pacvue, which helps companies advertise on Amazon and other e-commerce platforms, shoppers have been choosing the useful over the frills, buying household goods like Amazon Basics trash bags and Cascade dishwasher capsules.

“Sales are still very strong, but category confusion is due to inflation, especially for food,” Burdick said. “If they could figure out how to distribute gasoline, that would be the best prime day ever.”

Rising grocery store prices remain a major concern for many people across the country. About 90% of Americans are concerned on food prices, according to a recent survey by Harris in partnership with Alpha Foods.

Frito-Lay snack packs were among the top sellers during Prime Day, according to Numerator, which tracked Prime Day spending. But Prime Day shoppers weren’t limited to the essentials. Amazon-branded devices continued to top the list of hot items during the event, according to Numerator. Amazon tends to give big discounts on its Echo smart speakers and Fire TV sticks on Prime Day.

Consumers also shunned expensive items in favor of smaller purchases. According to Numerator, approximately 58% of Prime Day merchandise sells for less than $20, and only 5% sells for more than $100. About 34% of shoppers surveyed said they waited for Prime Day to buy something at a discounted price, while 28% turned down a good deal because they didn’t see it as a necessity, Numerator found.

Prime Day and other discount events that were held at the same time serve as a good “litmus test” of consumer confidence. amid fears of a looming recessionDaniel Newman, chief analyst at Futurum Research, said.

“It seems to me that most people still believe that their balances at home are in order, that they are still ready to go out and buy something on a day like Prime Day,” Newman said.

He added that many consumers have probably decided it’s better to buy “15 packs of Kind Bars and three new Echos” when they’re on sale, rather than wait.

“Am I going to spend $300 today or $500 tomorrow?” Newman said. “I think a lot of people think that way. If we’re going to be buying these things over the next few months anyway, I might as well do it now.”

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