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Amazon Prime Day: Offers, Expectations For Company Holiday

In an article for International Business Times, reporter Denisse Moreno looks at the massive shopping holiday in the middle of the summer, Amazon’s Prime Day. Prime Day, with its record-breaking sales, is a success because of the fact that Amazon looks at everything through the “lens of a technology company,” according to Clarus Commerce CEO Tom Caporaso.

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Amazon will hold its third annual Prime Day next week and it has already started offering deals on its site.

Amazon is expecting to have its biggest Prime Day yet, Tom Caporaso, e-commerce expert and CEO of Clarus Commerce, a marketing and technology platform, told International Business Times.

“I think they’re always striving for growth,” Caporaso said. “The target should be above 2016.”

Caporaso thinks Amazon’s goal could be to make $1-2 billion for Prime Day, definitely above the $600 million in incremental sales it made last year for the holiday.

Last year’s Prime Day was Amazon’s biggest day ever, surpassing 2015’s event by more than 60 percent worldwide and more than 50 percent nationwide, the company said. Prime Day 2016 was great for Amazon Echo devices, which were up more than  2.5 times compared to its previous record day, and up three times compared to 2015’s Prime Day. The online retailer sold more than 90,000 TVs on Prime Day last year, while Prime member orders on the Amazon app surpassed 2015’s by more than double.

Caporaso thinks more consumers will tune-in this year, pointing out that Amazon is doing more promotion for this summer.

Amazon started Prime Day back in 2015, but the self-proclaimed holiday was met with backlash, as some described the deal as a garage sale. However, Amazon’s goal now is to continuously add value to Prime, Caporaso said.

“I think Amazon’s two goals for the day is to recognize customers with deals and to recruit. Creating a new holiday can do that,” said Caporaso, adding that Amazon will continue to show Prime’s value so customers can stay on longer.

Amazon also announced exclusive deals for Alexa Prime users. The online retailer is offering a $10 new customer credit for those who use Alexa to order select items on Prime Day. Amazon is also offering a $20 discount on the Prime membership if the person signs up using Alexa. Telling the virtual assistant: “Alexa, sign me up for Prime,” will allow users to sign up for the one-year membership for $79.

“They’re trying to incent people to use Alexa and buy Alexa, and endrain Alexa into their shopping patterns and ultimately into their life,” said Caporaso. “Using Alexa makes a lot of sense for Amazon.”

Caporaso also said he finds it “interesting” Amazon created a holiday in the middle of the summer.

“I think with mobile devices people will tune into their mobile devices,” he said. “[It’s] a reflection of how people are shopping today. Amazon is taking advantage of that.”

Caporaso pointed out that “Amazon is at the forefront” compared to other retail companies because at its core it’s a tech company.

“Amazon is driving more sales and more revenue because of technology,” he said. Caporaso added that “retailers like JCPenney have to look through the lens of a tech company” to catch up.

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