Amazon Prime Fall Sale: Customers opt budget-friendly buys over high-value deals, report

Amazon.com Inc.'s Prime subscriber fall sale began on Tuesday, with price-conscious shoppers primarily focusing on purchasing budget-friendly kitchen gadgets and clothing, rather than making extravagant purchases on high-value items, reported Bloomberg.

Reportedly, during the initial eight hours of the event, customers spent an average of $38, which marks a two percent increase compared to the same timeframe last year, according to Attain, a research firm that gathers data from credit card transactions.

Brian Mandelbaum, Chief Executive Officer of Chicago-based Attain, mentioned that Amazon is tracking customers' browsing activity to provide tailored deals later in the season when they are ready to make more substantial purchases. Similar tactics are being employed by other retailers seeking to capitalize on Amazon's sale.

“This is a master class of how to have foresight into the consumer ahead of the season. Each shopper will have their own symphony of offers heading into the holidays,” added Mandelbaum.

The report from the agency adds that the consumers continue to face enduring inflationary pressures while simultaneously witnessing an increase in their debt obligations and a decrease in savings. The upcoming resumption of student loan payments, which were temporarily halted during the pandemic, is also anticipated to exert a burden on consumer spending.

According to Adobe Inc, online sales in the United States for November and December are expected to increase by 4.8 percent to reach $222 billion, surpassing last year's 3.5 percent growth but still falling significantly short of the pre-pandemic level of 13 percent achieved in 2019.

Numerator, another research firm, reported that the best-selling items during the sale thus far include Amazon-branded batteries. Numerator's data, gathered from 890 shoppers placing 1,379 orders, revealed that approximately 60 percent of the items sold were priced under $20, while only three percent exceeded the $100 mark.

“We’re just getting started, and so far, we’re really pleased with what we’re seeing and hearing from our customers, with Prime members shopping top deals across electronics, toys, home, fashion, beauty and Amazon devices,” said company spokesperson Maria Boschetti in a statement.

In 2015, Amazon initiated its Prime Day summer sale with the goal of enticing new subscribers, who pay $139 annually for benefits like shipping discounts and video streaming. This event enables Amazon to secure shoppers' loyalty ahead of the holiday season and strengthen its bond with current customers by providing exclusive deals on Amazon devices and various other products.

Last year, the Seattle-based company introduced a second event known as the Prime Early Access Sale, where shoppers predominantly favored discounted pantry items over expensive products. This year's autumn sale has been rebranded as Prime Big Deal Days.

Adobe estimates that during the two-day period, total online sales in the United States will amount to $8.1 billion, reflecting a 6.1 percent increase compared to the previous year.

(With inputs from Bloomberg)