Amazon Prime Day Sales Fall 41% on Day One, Brand Adviser Reports

Amazon Prime Day Sales Fall 41% on Day One, Brand Adviser Reports image

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Amazon.com Inc took a bold step this year by expanding its annual Prime Day summer sale from two days to four, aiming to give shoppers more time to explore millions of deals across its vast online marketplace.

However, early results have been sobering, raising pressure on the event’s remaining days. Momentum Commerce, which manages online sales for 50 brands across various categories, reported a 41% drop in its Amazon sales on Tuesday compared with last year’s Prime Day kickoff.

“The prolonged event has encouraged shoppers to do more ‘treasure hunting,’” said John Shea, Momentum’s founder and CEO. “Consumers are browsing and loading up shopping carts, but postponing pulling the trigger in case better deals emerge. Shorter Prime Day sales generated more urgency because shoppers worried they’d miss the discounts.”

Despite the slow start, Shea noted there’s still hope: “Momentum Commerce sales over the four days could still increase 9.1% compared with last year’s two-day event if more browsers make purchases in the final days.” Managing sales for brands like Crocs, Beats, and Therabody, Momentum handles about $7 billion in annual Amazon sales, giving the firm a broad perspective on Prime Day so far.

“It all hinges on this four-day strategy being a success,” Shea said. “Amazon sacrificed a lot on Day 1. It’s a wildly unpredictable and uncertain year.”

Wall Street appears cautiously optimistic, with Amazon shares rising 1.5% on the day, keeping pace with gains in Microsoft and Alphabet.

“They extended Prime Day from two days to four days, so it’s unclear that there really is a dropoff in activity,” said Gil Luria, analyst at D.A. Davidson & Co. “We’ll find out some when they report the quarter. But it’s very hard to pin down how well Prime Day has gone.”

Amazon initially declined to comment on Momentum’s figures. After Bloomberg published the report, the company responded: “Typical of statements made by third-party consultancies that don’t have access to the actual data, these numbers are highly inaccurate.” Amazon did not provide details on how the numbers were incorrect.

Prime Day has become a key indicator of consumer sentiment amid economic uncertainties. The ongoing trade tensions and tariff threats—some as high as 145%—have complicated pricing and discounting strategies, with some merchants limiting promotions or skipping Prime Day entirely.

Prime chief Jamil Ghani told Bloomberg Television on Wednesday that Amazon extended the sale based on shopper feedback wanting more time to browse. He said customers favored “everyday essentials” like teeth-whitening strips—the fastest-growing category on the site—and that the company was “pleased by the engagement” and that it’s “very early” in the event.

Data from Numerator tracking over 7,000 orders showed shoppers gravitated toward lower-cost items on day one, buying dish soap, protein shakes, and pantry staples rather than big-ticket items like TVs and gaming consoles. Nearly two-thirds of purchases were under $20, with only 3% exceeding $100.

The average household spent $106 on Prime Day, slightly down from $110 last year, with the average item costing $25.46 compared to about $28 a year ago.

“Consumers appear to be purchasing a greater number of items at a lower price point this Prime Day, with the average price per item slightly lower,” said Numerator analyst Amanda Schoenbauer. “However, with this year’s sale extended to four days, there is potential for Prime Day 2025 to break previous records.”

Meanwhile, U.S. shoppers spent $7.9 billion online across all retailers on Tuesday—up 9.9% from last year’s Prime Day kickoff—according to Adobe Inc., which forecasts total four-day spending to reach $23.8 billion. The Amazon sale coincides with multiday events from Walmart and Target, sparking a broader online shopping frenzy.

“The halo effect of Prime Day this year on other retailers is more significant,” said Momentum Commerce’s Shea.

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