Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe

Page created by Chad Chavez
 
CONTINUE READING
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                Amazon Kicks Off the First Half Day of 2018 Prime Day in the US
                                and Europe

                                   • Amazon launched its 2018 Prime Day (and a half) at noon local time in the UK and
                                     Europe markets and at 3:00 p.m. EDT in the US.
                                   • As expected, Amazon’s homepage during the European promotional event focused
                                     on the promotion of the company’s own consumer electronic products, such as its
                                     Echo smart speaker, whose price was reduced by 50%.
                                   • In the US, Amazon launched extra deals 12 hours early on Amazon electronic
                                     devices. The company organized its deals in 40 interest categories, which are
                                     available online, via the Amazon App, in Whole Foods Market locations, at Amazon
                                     Books and pop-up locations and at its Treasure Trucks.
                                   • This year, Amazon says that it is offering more than 1 million deals worldwide,
                                     compared to 100,000 deals two years ago. When we checked Amazon's US and UK
                                     websites on July 16 and July 17, between 2,000 and 3,000 products on each site
                                     were listed as "active or upcoming" deals for Prime Day. Prime members will also be
                                     able to take advantage of Lightning Deals in addition to 140 curated Spotlight Deals.

                                Amazon Launches 36-Hour Prime-Day 2018

                                In the UK and the Rest of Europe
                                Amazon Prime Day 2018 started at 12 p.m. (local time), July 16 in the UK and EU markets.
                                The promotion will run for 36 hours until midnight (local time) on the following day, July
                                17. In Europe, this was the first offering of this event for shoppers in the Netherlands and
                                Luxembourg. Still, Amazon does not operate full platforms for either of these two
                                markets. For example, shoppers in the Netherlands can access Prime Day deals via the
                                Dutch language version of Amazon.de, the company’s German portal.

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                       1
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                The type of promotions offered this year are the same as previous editions of the event:
                                Spotlight Deals (which cover major brands and popular products), Lightning Deals (which
                                are valid for a few hours at a time) and other savings and sales.
                                As expected, Amazon’s homepage during the promotional event focused on the
                                promotion of the company’s own electronics, such as the Echo smart speaker, whose
                                price was reduced by 50%. Still, third-party brands enjoyed great visibility and featured
                                extensively among the Spotlight Deals, such as the Sangenic Tec Nappy Disposal System,
                                which was listed on Amazon.fr, Amazon’s French portal.

                                Source: Amazon

                                In the Netherlands and Luxembourg, two markets that saw their first edition of the
                                promotional event, topics on Twitter ranged from reporting of products available on
                                promotion, to advice on best practices when scoping for deals on Prime Day.

                                Source: Twitter

                                Other retailers ran competing promotions in response to Amazon Prime Day during the
                                day of the event. For example, the UK portal of online retail platform eBay highlighted
                                deals that were available to all shoppers—with no need to pay for a membership fee—and
                                stated that the website runs promotions all year round, not just for one day. All these
                                were indirect references to Amazon Prime Day. Among other examples, British catalog
                                retailer Argos highlighted flash sales and other promotions on the same day.

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                        2
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                Source: EBay

                                In the US
                                At 3:00 p.m. EDT on Monday, July 16, Amazon launched its 36-hour Prime Day shopping
                                event, offering more than 1 million deals worldwide, and consumers were able to access
                                the website after roughly an hour-long outage. The company launched a presale, featuring
                                “double the deals on Amazon devices,” 12 hours early, with extra discounts on Amazon
                                electronics such as the Echo, Fire TV and Fire tablets, as well as new products for home
                                security and Echo devices with screens. Consumers can also sign up for a free Prime trial
                                subscription to take advantage of the deals.
                                Amazon is organizing its deals in more than 40 interest categories, such as style and
                                fashion, electronics, cooking, travel and so on. Prime members can capture the deals
                                online, via the Amazon App, at Whole Foods Markets, Amazon Books and Amazon pop-up
                                stores and from its Treasure Trucks. Members can also watch live programming on
                                Amazon’s website.
                                This year, Amazon says that it is offering more than 1 million deals worldwide, compared
                                to 100,000 deals two years ago. When we checked Amazon's US and UK websites on July
                                16 and July 17, between 2,000 and 3,000 products on each site were listed as "active or
                                upcoming" deals for Prime Day. The company will offer limited-time Lightning Deals
                                throughout the 36-hour event, and US Prime members will be offered more than 140
                                highly curated Spotlight Deals.

                                Prime Day Advance Offers
                                Amazon started offering discounts on selected Prime Day products a full 12 hours before
                                the shopping holiday began.

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                    3
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                Source: Amazon

                                Early-access deals were offered on Alexa-enabled products such as Echo, Fire TV and Fire
                                tablets, as well as products for home security and Echo devices with screens.

                                Source: Amazon

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                    4
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                The First Batch of Deals
                                The first batch of deals includes discounts in the following categories:
                                   • Amazon devices—Deals include a free trial subscription to Amazon Music, and
                                     discounts on TVs and Fire TV sticks, Echo products, Ring doorbells, Fire tablets and a
                                     10% discount when using the Amazon credit cards.
                                   • Amazon brands—Amazon is offering 30% off on private-label brands such as
                                     AmazonFresh, Presto! and Solimo, AmazonBasics items such as bedding, office
                                     products, cookware and electronics accessories, and furniture and home décor from
                                     Rivet and Stone & Beam, in addition to 50% off on private-label apparel brands,
                                     including Amazon Essentials, Goodthreads and Daily Ritual.
                                   • Fashion—Amazon is offering 40% off on select denim styles from Levi’s and The
                                     Children’s Place, and on select jeans for men and women from Hudson, NYDJ and
                                     Lucky, as well as 50% off on athleisure shoes for men and women from Adidas, New
                                     Balance and Puma, and on activewear brands, including Champion, Lacoste, Russell
                                     and Puma.
                                   • Electronics—Products on sale include smart TVs, cellphones, headphones, memory
                                     cards, monitors, PCs, routers, accessories, 3D printers and robots. Eligible Prime
                                     members will receive 15% back on select Samsung TVs when using Amazon credit
                                     cards.
                                   • Smart home—Discounts range from 30% to 40% on smart home products, including
                                     lighting, sprinklers and smart plugs.
                                   • Home and kitchen—Amazon is offering 30% off select furniture, mattresses, rugs
                                     and appliances, as well as 40% off select cat treats and supplies.
                                   • Video games—Discounts include 25% off on an Xbox bundle and discounts on two
                                     Nintendo bundles.
                                   • Toys, books and baby—Discounts range from 30% to 50% off on select toys, puzzles,
                                     children’s books, games and baby products.
                                   • Sports and outdoor—Amazon is offering discounts on camping gear, grills, griddle
                                     stations and water filters.
                                   • Other deals—The company is also offering discounts on IMDPro (the Internet movie
                                     database) subscriptions, virtual dash buttons and Subscribe & Save subscriptions.
                                   • Small and medium-sized businesses—Amazon partners are offering discounts on tea
                                     and accessories, DBA testing sets, power banks, handmade products and Amazon
                                     Launchpad startup products.

                                Where Consumers Can Access the Deals
                                Prime members can access Prime Day deals through a variety of channels, including:
                                The Amazon App—Members can set alerts to track deals up to six hours before they are
                                live, as well as use the app to unlock additional discounts on select deals.
                                Alexa—Members can just ask, “Alexa, what are my Prime Day deals?” to learn about deals
                                or track orders.
                                AmazonFresh—Prime members receive up to 30% off on frozen treats this summer, plus
                                up to 30% off groceries and household supplies. New and existing AmazonFresh
                                customers can get $30 off an order of $100 or more.

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                      5
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                Whole Foods Market—Through July 17, Prime members who spend $10 in a single
                                transaction in the store can receive a $10 credit to be used during Prime Day. Amazon
                                Prime Rewards cardmembers will enjoy double the rewards—10% back—when shopping
                                at Whole Foods Market on up to a total of $400.
                                Prime Now—Prime members who have not yet tried Prime Now will receive $10 off their
                                order before July 17 and receive $10 to use towards a future order.
                                Treasure Truck—There are 25 trucks in select cities, each with special offers that can be
                                picked up at the truck on Prime Day.
                                Amazon Books and Pop-Ups—Members can take advantage of Prime Day deals at 82
                                Amazon Books and pop-up locations in 21 states across the US.
                                Amazon.com in Spanish—Customers can shop Prime Day deals, view their shopping cart
                                and place orders in Spanish.
                                Amazon Prime Credit Cards—Cardmembers can enjoy 5% back on all Prime Day
                                purchases when shopping with Amazon Prime Rewards Visa credit cards.

                                Other US Retailers’ Activities
                                Other retailers have jumped on the Prime Day bandwagon, offering their own promotions:
                                   • Best Buy is offering discounts on 4K smart TVs, laptops, smartphones and other
                                     products.
                                   • EBay is offering thousands of deals on brands such as Adidas, Apple, Dyson,
                                     KitchenAid, Samsung and others.
                                   • Target is offering deals on smart TVs, smart home and kitchen products.
                                   • Walmart is offering a Nintendo Switch console bundle, discounts on selected video
                                     games, TVs, tablets, phones and laptops and on Google Home products.

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016                                        6
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
July 17, 2018

                                Deborah Weinswig, CPA
                                CEO and Founder
                                Coresight Research
                                New York: 917.655.6790
                                Hong Kong: 852.6119.1779
                                China: 86.186.1420.3016
                                deborahweinswig@fung1937.com

                                Filippo Battaini
                                Analyst

                                John Harmon, CFA
                                Senior Analyst

                                Hong Kong:
                                6/F, LiFung Tower
                                888 Cheung Sha Wan Road, Kowloon
                                Hong Kong

                                London:
                                242–246 Marylebone Road
                                London, NW1 6JQ
                                United Kingdom

                                New York:
                                1359 Broadway, 18th Floor
                                New York, NY 10018

                                Coresight.com

Deborah Weinswig, CEO and Founder, Coresight Research
deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016             7
Copyright © 2018 Coresight Research. All rights reserved.
Amazon Kicks Off the First Half Day of 2018 Prime Day in the US and Europe
You can also read