Amazon Celebrates 20 Years by Having Prime Day
Amazon is celebrating 20 years in business on July 15th with Prime Day, aimed at providing knockdown deals to subscribers to Prime, their shopping program. The deals will be available in nine geolocations including; US, UK, Spain, Italy, Japan, Germany, France, Austria and Canada.
There is speculation that it is an attempt to steal the thunder of Black Friday, which saw over $1.5 Billion worth of online sales during one day during last November.
A representative of Amazon has claimed in a press release that there will be more deals available during the 24 hour lifespan of Prime Day than there was during the last Black Friday. However the company did not confirm whether or not this meant that there would be more deals available during July 15, if they would be worth more in monetary terms, or if they intended to trump Black Friday as the major annual event in the consumerist calendar.
The third option is not as much hyperbole as it may at first seem. This is due to the amount of influence Amazon currently has over Black Friday, as well as Cyber Monday, which now involves reductions in the pricing of approximately 80 million products during the two major shopping days, and also continuing for the following week to Thanksgiving. The scale of this is currently putting their competitors, both bricks and mortar and online, under increasing amounts of pressure to cut their prices and sell more at the same time.
Prime day isn’t just being launched on Amazons whim in order to celebrate the anniversary. During Q4 last year they were able to show profits of $214 million largely due to Prime. This was a speedy and dramatic turnaround from the previous quarter when they posted losses, which were larger than most had anticipated. The reversal was mostly attributable to their raising of the charges for Prime subscriptions.
The raises were initially met with a lot of discontent from their subscribers and other consumers, as are most price increases, but over time they were accepted as Amazon bolted on a number of new services, including instant deliver and the Dash Button. A successful Prime Day this year might just push more consumers over the line for their $99 annual Prime subscription, or the one-month trial at least.
However, with so many orders coming in on the same day, will logistics giant Amazon be able to keep up?