Core Insights - The summer retail market in 2025 is characterized by an intense competition over "promotion duration" and "consumer mindset," with major retailers extending their promotional periods to capture market share amid rising price sensitivity [1][2][3] Group 1: Amazon's Prime Day Strategy - Amazon extended its Prime Day from 2 days to 4 days, leading to a significant increase in overall advertising budgets, with daily ad spending rising by 19.2% year-over-year [2][12] - The first day of Prime Day saw the highest hourly sales, indicating a concentrated effort by brands to maximize exposure during this "golden window" [2][12] - Despite the extended promotion, sales slowed on the second and third days, with a resurgence on the fourth day, highlighting a shift in consumer urgency [2][31] Group 2: Walmart's Competitive Edge - Walmart experienced a remarkable turnaround, with advertising spending increasing by 46.1% year-over-year, surpassing Amazon's growth [3][27] - The efficiency of Walmart's advertising improved, with a 15% decrease in cost-per-click (CPC) and a 21.4% increase in return on ad spend (ROAS) [3][14] - Walmart's advertising sales grew by 22% year-over-year, outperforming Amazon's 13.3% increase, indicating a shift in the competitive landscape of retail media [3][27] Group 3: Performance of Other Retailers - Target's promotional efforts showed modest growth, with a 7.4% increase in advertising spending, but faced a 9.5% decline in ROAS [4][29] - Instacart's extended promotion period of 92 days led to fluctuating performance, with a notable drop in advertising sales by 10.8% year-over-year [4][29] - Both Target and Instacart struggled to match the urgency and effectiveness of Amazon and Walmart's promotional strategies [4][29] Group 4: Category Insights - Electronics emerged as the top-performing category on Amazon, achieving a ROAS of $13.43, while grocery and food categories reflected a 36% conversion rate, indicating a preference for essential goods [2][31] - Health and personal care categories saw a 24.7% increase in daily ad spending, but faced challenges with declining ROAS due to rising import costs [5][13] - The pet supplies category experienced a significant increase in CPC by 27.5%, highlighting the ongoing demand in the "pet economy" despite rising advertising costs [5][13] Group 5: Market Trends - The retail market is witnessing a shift towards "price sensitivity," with consumers prioritizing practical and high-value items, as evidenced by 65% of purchases during Prime Day being under $20 [6][21] - "Discovery-based e-commerce" is emerging as a new growth area, with platforms like TikTok driving traffic to Amazon, indicating a shift in consumer purchasing behavior [6][28] - The competition in retail media is expected to focus on "cross-platform integration" and "full-funnel operations," with brands needing to adapt to multi-platform strategies to succeed [6][28]

Core Insights - Amazon has introduced a new promotional policy that imposes a "cooling-off period" for sellers who participated in specific Deal activities during Prime Day, preventing them from setting new promotions for a designated time [1][2][3] Group 1: New Promotional Regulations - ASINs that participated in Best Deals (BD) will face a 21-day restriction on promotions post-activity, while those involved in Lightning Deals (LD) will have a 7-day restriction [2] - European sites have stricter requirements, with some countries enforcing a 30-day ban on any promotional activities after Prime Day [2] - The new policy has not been officially announced by Amazon, but multiple sellers have confirmed its validity through communications with account managers [2][3] Group 2: Impact on Sellers - The sudden implementation of this policy disrupts sellers' operational plans, particularly those who invested heavily in Deal activities during Prime Day [3] - Sellers are now required to pivot their strategies to maintain sales performance without relying on mainstream promotional tools, leading to increased focus on advertising optimization, natural ranking improvement, and external traffic generation [3][6] - The new regulations necessitate a comprehensive understanding of sales performance and adjustments in advertising and promotional strategies [3][6] Group 3: Support Tools for Sellers - Easy Warehouse ERP (易仓ERP) can assist sellers in managing their operations during the promotional restrictions by providing necessary support and data synchronization [3][6] - The ERP system offers features that allow sellers to analyze promotional performance across different stores and platforms, helping them to optimize resource allocation during the cooling-off period [6] - The introduction of the cooling-off period is seen as a significant adjustment in Amazon's promotional management, encouraging sellers to focus on long-term operational strategies rather than short-term promotions [6]

Group 1 - Amazon Prime Day early spending decreased by 14% compared to the same period last year [1] - Amazon's stock (AMZN.O) fell by 1.8%, reaching its lowest point of the day [1]

Core Viewpoint - Amazon is facing significant challenges due to changes in global trade dynamics, particularly the impact of tariffs and trade policies on its supply chain and profitability [1][4]. Financial Performance - In Q1, Amazon reported net sales of $155.67 billion, a 9% year-over-year increase, marking the lowest growth rate in 2023; net profit was $17.13 billion, up 64% from the previous year [2]. - The retail segment remains the largest revenue source, with online store sales growing 5% to $57.41 billion, and third-party seller services increasing by 6% to $36.51 billion [2]. - AWS cloud services generated $29.27 billion in sales, a 17% increase, and $11.55 billion in operating income, helping to offset pressures from the retail sector [2][7]. Impact of Tariffs - Amazon's guidance for Q2 indicates revenue between $159 billion and $164 billion, with operating profit expected to be between $13 billion and $17.5 billion, both below analyst expectations [3]. - Goldman Sachs estimates that if Amazon cannot pass on tariff costs, it could face annual profit losses of up to $10 billion, equivalent to 17% of its projected net profit for 2024 [4][6]. - The cost of goods sold in the U.S. could rise by 15%-20% due to tariffs, with global costs increasing by 9%-12% [3][4]. Seller Dynamics - Many third-party sellers are already raising prices and cutting advertising spend due to increased costs from tariffs, which could reduce Amazon's commission income and affect product diversity on the platform [3][4]. - Some sellers are preemptively stockpiling inventory to mitigate the impact of tariffs, but this is a short-term strategy that may lead to price increases as inventory depletes [5][6]. Market Response - Despite current challenges, Amazon has not yet observed a significant decline in market demand or a substantial increase in average retail prices [5]. - The upcoming Prime Day event may see reduced participation from some sellers due to tariff impacts, potentially affecting advertising revenue [6]. Long-term Outlook - Amazon's strong brand and Prime membership system may help maintain market share despite competitive pressures from platforms like Temu, especially in the context of ongoing tariff challenges [6][7]. - The performance of AWS and advertising segments, which grew by 17% and 18% respectively, may provide a buffer against retail pressures [7].