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Why Amazon’s Prime Day happens in July

Starting Tuesday, Amazon Prime Day is back. But a couple of odd days in July do feel a bit strange. Here’s why it seems crazy that Amazon moved what could be one of its biggest sales days to the middle of the summer.

Amazon has Prime Day every year in July to boost sales during the summer, which is usually a slow time for shopping. Doug Anmuth, an analyst at JPMorgan, says that it also lets Amazon get a head start on the back-to-school and college shopping season.

Amazon (AMZN) tried out its first Prime Day in July 2015, which was the 20th anniversary of the company. It planned the day so that Amazon (AMZN) fans would feel like they were shopping on Black Friday, but it had more deals than the November buying tradition. In a press release about the deal, Amazon (AMZN) said, “Move over, Black Friday. Here comes Prime Day.”

Coresight Research says that on Amazon’s first Prime Day, the company made $900 million in sales. The company chose to bring it back with more deals for a second year. Coresight thinks that the sales reached $1.5 billion.

Since then, Amazon has added a second day of deals. Bank of America thinks that Prime Day will bring in about $12 billion this year, which is up 12% from last year.

Analysts say that Prime Day only accounts for 1% to 2% of Amazon’s total sales, but the company uses the sale to build loyalty with Prime members and get new shoppers to join the program.

Prime Day helps Amazon get new members for Amazon Prime, its $139-a-year free-shipping program, and strengthens customer relationships with the company’s goods and businesses, like Whole Foods. Most of the things the company has sold on Prime Day in the past were only available to Prime users.

This will be the first Prime Day after Amazon’s shipping system was updated.

Amazon has always had one national delivery system that sent items to customers from warehouses all over the country. If a customer in, say, Detroit bought something that wasn’t in a warehouse nearby, Amazon would ship it from another part of the country. But the company made eight smaller regions this year so that goods could be shipped over shorter distances.

People may see different products when they look for products on Amazon’s website because of the changes. Amazon says that items that are closer to the customer will show up higher on search pages.

This year, Target (TGT), Walmart (WMT), Best Buy (BBY), and other stores are putting more pressure on Amazon by having sales on the same day as Prime Day.

Online prices are also going down as the deal starts.

The Adobe Digital Price Index from Adobe Analytics shows that online prices fell 2.6% year over year in June. This was the biggest drop since May 2020.

June was the 10th month in a row that prices went down from the same month the year before. Prices went down in more than half of the categories that Adobe watched.

The prices of electronics, computers, and tools have continued to drop by a lot. Prices for groceries went up, but not as quickly as before.

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