Amazon’s 2023 Prime Day Breaks Records, Boosts Small Businesses

Amazon announced on Thursday that its 2023 Prime Day event was the largest in its history, surpassing previous records and driving significant sales for both the e-commerce giant and independent sellers. Taking place over a two-day period from July 11 to July 12, Prime members worldwide purchased over 375 million items, saving a collective total of more than $2.5 billion.

The first day of the 48-hour shopping extravaganza marked the “single largest sales day in company history,” according to Amazon. The event’s success was particularly noteworthy for small- and medium-sized businesses operating as independent sellers on the platform. Sales growth for these sellers outpaced Amazon’s own retail business during the event, demonstrating the positive impact of Prime Day on smaller enterprises.

In a bid to support these independent sellers, Amazon offered a record number of deals on their products, leading to a significant boost in their average daily sales. On the first day of the sale alone, small businesses experienced a surge in sales, with their average daily revenue increasing by more than 18 times compared to the days leading up to Prime Day.

The impact of Prime Day extended beyond Amazon’s platform, stimulating overall online sales. According to Adobe Analytics, consumers collectively spent a staggering $12.7 billion across all online marketplaces during the two-day event, marking a 6.1% year-over-year growth. Adobe’s analysis, which covers over 1 trillion visits to U.S. retail sites and 18 product categories, confirmed that Prime Day set a new record for demand in the e-commerce industry.

The popularity of Amazon’s Prime Day has prompted other retailers to offer competing sales during the same period. Walmart and Target, in particular, capitalized on the event by issuing their own enticing deals. Both companies sought to attract shoppers by promoting their respective loyalty programs, Walmart+ and Target’s Circle, in exchange for discounts on a wide range of products.

Vivek Pandya, lead analyst at Adobe Digital Insights, highlighted the significance of Prime Day as one of the biggest e-commerce moments of the year. He noted that consumers not only took advantage of the discounts but also utilized buy now, pay later services for their purchases. Adobe’s data revealed that buy now, pay later services accounted for 6.5% of orders, generating $927 million in revenue, a 20% increase compared to the previous year. Categories such as apparel, furniture/home, and electronics drove this growth.

Pandya emphasized that the revenue growth attributed to buy now, pay later services offers a preview of what can be expected in the coming months, particularly as the holiday shopping season approaches. With Prime Day setting new records and boosting the e-commerce industry as a whole, retailers are optimistic about the potential for continued growth and success in the months ahead.