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Core Insights - Amazon sellers are offering fewer discounts during the Prime Day sales event due to tight margins caused by high costs from tariffs [1][4] - Approximately 60% of products sold on Amazon are from sellers who are pulling back on discounts [1] - The sales event is expected to generate $23.8 billion in online sales for Amazon and other US retailers [6] Seller Challenges - Upstream Brands, which sells aluminum trays, is unable to offer discounts this year for the first time due to a 50% tariff on aluminum, impacting their budget for Prime Day [3] - Unilever's Blueair has reduced the number of products on sale this year because of tariffs, indicating a cautious approach to the economic environment [4] Consumer Behavior - A survey indicated that 25% of US shoppers plan to skip Prime Day due to tariffs, while over half will closely monitor prices [11][16] - The extended sales period may lead to cart abandonment as it reduces the sense of urgency typically associated with Prime Day [10] Market Dynamics - Prime Day is seen as an early indicator of consumer appetite, especially in categories like apparel and electronics, where price drops are expected to be significant [13] - Retail sales have started to decline following a surge in purchases before tariffs were implemented, indicating a shift in consumer spending behavior [14] Sales Projections - Online sales from July 8 to July 11 are expected to increase by 28.4% compared to the same period last year, with Amazon alone projected to see nearly $13 billion in sales, a 59% increase from last year [18]

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