Did you know Amazon is losing billions of dollars on its device business? But what it’s shedding on smart gadgets like Echo, Kindle, and Fire TV Sticks, it may have already earned back on the recently concluded Prime Day.
How much did Amazon earn, exactly? Read on to know more.
- Final Prime Day statistics and takeaways 📒
- A brilliant marketing solution 💡
- Social media platforms’ social commerce woes 🛑
BIG IDEA
The final Prime Day 2024 numbers are in!
We’ve already reported on the sky-high total sales of $14.2 billion. But to make it ‘more’ official, here are the stats you’ve all been waiting for straight from Digital Commerce 360.
📊 The numbers
Amazon didn’t exactly release an official sales amount. So, we did our best to extract the key takeaways from third-party analytics to share with you the numbers of the retailer’s biggest sale of the year:
- 200 million items were sold, mostly from small and medium businesses.
- Orders had an average order value (AOV) of $57.97, with the average price per item being $28.06. Roughly 40% of households ordered just once.
- 98% of shoppers knew it was Prime Day, with 53% saying the sales event was their main reason for shopping.
- 37% were “VERY satisfied” with the deals offered. About 29% were SOMEWHAT satisfied, while 26% were EXTREMELY satisfied.
Beyond Amazon
According to Adobe Analytics, other marketplaces benefited from the shopping rush too. Day 2 of Prime Day saw $7 billion in sales outside Amazon.
- 35% also shopped Walmart Deals.
- 34% took part in Target Circle Week.
- 11% participated in Best Buy’s Black Friday in July.
The remaining shoppers only shopped on Amazon, clearly marking its dominance.
Overall, Prime Day 2024 wasn’t only another success for Amazon but also a sales booster for the entire ecommerce sector. Talk about a win-win situation! 🎊
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A brilliant solution to your marketing woes
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- You have dozens (or hundreds) of products to offer and sell;
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BITES OF THE WEEK
- New Dog, Old Tricks: New AI-powered assistant Rufus aims to address people's old concerns when shopping.
- Product Size Update: More product types, including pitchers and binoculars, will soon have size normalization features.
- Amazon x Instamart: Amazon India is showing interest in Swiggy's Instamart.
SOCIAL COMMERCE
Why social media platforms struggle with social commerce
ICYDK, around 5.07 billion people use social media. What’s more, 77% of retail site visits came from smartphones, which also made up two-thirds of online shopping orders.
With such a huge audience and mobile traffic, you'd think social media platforms would dominate ecommerce. But according to Yahoo Finance, they’re facing some big challenges.
⚖️ Big plans = Big losses
Meta introduced Live Shopping in 2018. This feature lets you tag products in live videos so viewers can easily buy. The goal was to turn social media into shopping hubs.
However, things didn’t go as planned. While live shopping is a hit in China, it's not catching on in Western countries yet.
- Meta halted its Live Shopping feature in October 2022.
- TikTok also paused its Live Shop expansion in the U.S. and Europe in 2022 due to low engagement. And just recently, it put its expansion plans in major European markets on hold to focus on the U.S. market where it’s facing a potential ban.
📱 What’s next?
To succeed in social commerce, platforms like Facebook and TikTok need to make buying on their apps as easy and safe as shopping on Amazon.
As for sellers like you, keep an eye on these trends so you can be ready once social media becomes a strong selling avenue. Until then, focus on boosting your Amazon store while using social media to attract customers.
