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The Prime Day Secrets Amazon Doesn't Advertise
AmazonAmazon(US:AMZN) ZACKSยท2025-07-10 00:01

Core Insights - Amazon Prime Day is primarily designed to clear warehouse inventory rather than to provide the lowest prices for consumers [4][6] - The event has evolved into a significant retail holiday, providing Amazon with a reliable summer revenue boost [6] - Some advertised discounts during Prime Day may not represent genuine savings due to price manipulation tactics [7][8] Group 1: Purpose and Strategy of Prime Day - Prime Day was initiated as a solution to Amazon's inventory management issues, functioning as a large-scale clearance event [4][5] - The event has grown into a major retail occasion, allowing Amazon to control revenue during the summer months [6] - The urgency created by countdown timers and limited stock encourages impulsive buying behavior among consumers [14][15] Group 2: Pricing Tactics - Many Prime Day deals may not be the lowest prices of the year, as Amazon often raises prices prior to the event to create the illusion of discounts [7][8] - Price anchoring is a common tactic used by Amazon to manipulate consumer perception of savings [8][9] - Genuine deals do exist, particularly on Amazon's own devices, which are discounted to encourage further engagement with the Amazon ecosystem [10][12] Group 3: Consumer Behavior and Recommendations - Smart shoppers can navigate Prime Day effectively by avoiding purchases they wouldn't make at full price and planning ahead [16][17] - Following deal-hunting accounts and tracking price changes can help consumers identify true savings opportunities [17] - Comparing prices with other retailers during the same sales period can maximize savings [17]