Prime Day unlocks huge value for Amazon (AMZN)

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July 13, 2017 3:22 PM

Amazon’s annual Prime Day promotion resulted in the biggest day of sales in the online retailer's history

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Amazon’s annual Prime Day promotion resulted in the biggest day of sales in the online retailer's history, it announced in a press release.

While Amazon has not released specific numbers, the company said sales from the 30-hour promotion improved significantly from last year’s event.

Prime Day created immense sales for both Amazon and its merchants:

existing
sold

The promotion helped Amazon connect with consumers via the Echo line and Amazon app:

steep

Amazon is using Prime Day to create a cycle of ever-increasing engagement and spend, as it gets more people to own Echos, subscribe to Amazon Prime, and download the Amazon app. According to a report from The NPD Group, 30% of people who purchase an Echo Dot buy another one in the next year, and their orders through Prime Now increase 140%.

Additionally, half of the money Echo users spend online is spent through Amazon. Meanwhile, Prime subscribers tend to spend more on Amazon than non-subscribers, and once consumers have the app downloaded, it is easier to go back to it. All of these channels and products could lead to increased future revenue — a Harvard Business Review survey found that consumers who engage with a retailer through multiple channels spend 10% more than ones who only shop through one channel. While Prime Day saw tremendous sales this year, the real value is in finding more ways to engage with customers.

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