Coresight Research estimates Amazon’s annual sales event will rake in 40 percent more revenue than last year, as the company is poised to make at least $3.4 billion.
According to analysts, Amazon is expected to rake in $3.4 billion from its annual Prime Day shopping event, with researchers telling Retail Dive that this estimate is actually very conservative.
In 2017, Amazon’s members-only sale ran for 30-hours, six-hours longer than its first few years. Now, the company has extended its annual event a further six hours to 36-hours. As a result of the extended timeframe, the expansion of Prime memberships into new global markets, including Australia, and further adoption of Amazon across the globe, analysts believe the e-commerce juggernaut is set to make a lot more revenue than it has in the past.
Coresight Research has also suggested the company is using its exclusive sales event to boost its private label sales, while also establishing a competitive edge with its smart speakers.
“We interpret the focus on promotional activities on Echo devices as a strategy in response to the surge in competition in the smart speakers/smart home space, especially from competitors such as Google with its Google Home devices,” Coresight Research CEO and Founder, Deborah Weinswig said in the report.
In Australia, Amazon is promoting its Echo Dot by giving them away. Consumers who purchase a standard Echo smart speaker, which retails for $149, will reportedly receive an Echo Dot ($49) for free. It’s believed the promotion will be valid up until Prime Day officially kicks off in Australia on July 16 and is accessible to all consumers, not just Prime members.
With more than 100 million Prime members worldwide, Amazon itself is also confident its Prime Day event will prove to be a successful one for everyone involved.
“Having just launched Prime in Australia, we are delighted that Australian members can now enjoy the unparalleled combination of shopping and entertainment benefits that Prime gives them,” said Rocco Braeuniger, country manager of Amazon Australia. “We hope that Prime Day will provide them with even more value.”
The sale will take place less than a month after Amazon first launched Prime down under, and is believed to be a tactic to show consumers that a Prime membership is about more than just video streaming and free shipping.
Consumers will reportedly have access to a host of exclusive deals on books, electronics, DVDs, video games and smart home tech, as well as cookware, kitchen appliances, toys, fashion and everyday essentials from across amazon.com.au.
Amazon’s private label brands and in-house tech will also be offered at reduced prices, with “incredible” savings expected in Alexa-enabled products.
Australian consumers can join Prime for free on a 30-day trial, with the introductory member price currently sitting at $4.99 per month or $59 per annum until January 2019 when the monthly membership is expected to increase to $6.99.
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