Core Insights - Amazon's Prime Day event achieved record sales and volume, surpassing any previous four-day sales cycle, with significant contributions from third-party sellers [1][3] - Despite the increase in order volume, many sellers expressed dissatisfaction with profit margins, indicating a shift in market demand where consumers are more price-sensitive [3][6] Group 1: Sales Performance - During the Prime Day event from July 8 to 11, 2025, online spending in the U.S. reached $24.1 billion, a 30.3% increase year-over-year, exceeding previous expectations [2] - Mobile shopping became the dominant channel, accounting for 53.2% of consumer purchases, with total spending via mobile devices reaching $12.8 billion [2] - Significant sales growth was observed in categories such as children's clothing (250% increase), home security products (185% increase), and refrigerators/freezers (160% increase) compared to June 2025 [2] Group 2: Seller Challenges - Over 60% of sales on Amazon's platform came from third-party sellers, yet many reported declining profit margins despite increased order volumes [3][5] - The average discount during Prime Day ranged from 11% to 24%, with clothing discounts reaching 24%, higher than the previous year's 20% [5] - Sellers faced pressure from increased discount requirements, competition from other platforms, and Amazon's own price cuts, leading to a "Matthew effect" where larger sellers benefit at the expense of smaller ones [5] Group 3: Post-Promotional Effects - Following Prime Day, many sellers reported a significant drop in sales, with some experiencing a 50% reduction in order volume [7][9] - Amazon introduced a new "cool-off" period requiring products that participated in Prime Day promotions to refrain from further promotional activities for a specified duration, raising concerns among sellers about future promotional eligibility [9][12]

Core Viewpoint - Amazon's stock price fell by 1.8%, reaching an intraday low, as spending during the Prime Day promotion decreased by 14% compared to 2024 [1] Group 1 - Amazon's stock experienced a decline of 1.8% [1] - The Prime Day promotion saw a significant drop in spending, down 14% from the previous year [1]