Core Insights - Amazon Prime Day sales initially showed a decline year-over-year but later data indicated strong sales performance despite economic uncertainties [1][3] - The event duration was extended to four days this year, which may have influenced consumer purchasing behavior [2][3] Sales Performance - Early reports indicated a 41% drop in sales for the first day of the event according to Momentum Commerce, but Amazon disputed these figures [3] - Sales on the third day surged by 165% compared to the previous year, indicating a shift in consumer spending patterns [4] - Overall online spending in the U.S. reached $7.9 billion on the first day of Prime Day, marking a nearly 10% increase from the same day last year [4] Consumer Behavior - The average household expenditure during Prime Day increased to $156.37, up from $152.33 in 2024, with multiple orders being common [5] - The average order price decreased to $53.34 from $57.97 the previous year, suggesting a shift in purchasing strategies [5] Market Context - This year's Prime Day was the first since the implementation of tariffs affecting many sellers, particularly from China [6][8] - Amazon's CEO noted that the company had not yet seen significant price increases due to tariffs, attributing this to preemptive stocking and competitive pricing strategies [8] Competitive Landscape - Amazon continues to face competition from retailers like Target and Walmart, which also hold sales events around the same time [10] - Nearly 50% of surveyed buyers expressed intentions to shop Walmart's deals, while 35% planned to participate in Target's sales event [10] Sales Projections - Adobe predicted record online spending of $23.8 billion during the Prime Day period, with discounts expected to remain high [11]