Core Insights - Amazon extended its annual Prime Day from two days to four days, betting that a longer promotional period would allow consumers more time to browse its vast selection of discounted products. However, initial results indicate a significant drop in sales, raising concerns about the effectiveness of this strategy [1][2]. Group 1: Sales Performance - Momentum Commerce reported a 41% year-over-year decline in sales on the first day of Prime Day (July 16) [1]. - The CEO of Momentum Commerce noted that the extended promotional period led to a "browsing" behavior among consumers, who added items to their carts but delayed purchases in anticipation of better discounts [1]. - If hesitant consumers convert to actual purchases in the following days, total sales during the four-day event could still see a 9.1% increase compared to last year's two-day event [1]. Group 2: Consumer Behavior - Approximately 65% of purchased items were priced below $20, with only 3% exceeding $100. The most popular items included household essentials like Dawn dish soap and Premier protein powder [3]. - The average household spending on the first day decreased from $110 last year to $106 this year, while the average price per item dropped from $28 to $25.46 [3]. - Consumers appeared to favor lower-priced items this year, indicating a shift in purchasing behavior [3]. Group 3: Market Context - Amazon's Prime Day has become a barometer for consumer confidence, especially in light of economic uncertainties stemming from trade tensions [2]. - The promotional event coincided with similar multi-day sales from competitors like Walmart and Target, intensifying the online shopping frenzy [3]. - Adobe Inc. reported that U.S. consumers spent $7.9 billion online on the first day of Prime Day, marking a 9.9% increase compared to the same day last year, with total spending for the four-day event expected to reach $23.8 billion [3].