This year, nearly three-quarters (74%) of Prime Day shoppers bought items for personal and/or household use, up from 60% compared with last year, per July 2024 data by CivicScience. These everyday staples included top-selling items such as trash bags and protein shakes, per Numerator.
What it means: There’s a lot of upside in being a go-to retailer for lower-cost consumer packaged goods (CPG) buys because there’s huge purchase frequency potential, Marzano said. The opportunity for recurring revenue puts traditional retailers in a bigger advantage over up-and-comers such as TikTok Shop, which hosted its own sales event a week before Prime Day. Some 10% of Prime Day consumers also shopped from TikTok Shop’s Deals for You Days, according to CivicScience.
2. Shoppers are anticipating their needs
“Consumers largely knew what they were going to shop for going into the event. [That means] there’s more planning and less room for impulse purchases, especially in this economic environment,” Marzano said.
More than 6 in 10 consumers (62%) researched deals ahead of the Prime Day, per May 2024 data by Skai.
What it means: With more product research and discovery happening before Prime Day, it’s clear consumers “are willing to wait around,” our analyst Zak Stambor said. That shows a lack of urgency, but also an increasingly strategic and discerning attitude toward spending.
To avoid losing a sale to a competitor offering a cheaper price, Marzano suggested diversifying your ad spend to ensure it’s not all going toward lower-funnel messaging. Advertisers should think about ways to reach their audience earlier in the planning process to solidify their place in the consideration phase, she said.
3. The hesitancy to spend isn’t dissipating
“Prime Day existing isn't enough to really overcome the overarching impact of the broader economic landscape and how consumers are feeling,” Marzano said. “We saw more muted behavior in terms of customers who are going onto Amazon to shop for back to school, holiday, or gift-giving.”
Although retail back-to-school season sales will reach $81.16 billion this year, growth is slowing (7.2% YoY growth in 2023 vs. 3.2% growth YoY in 2024), according to our February 2024 forecast.
What it means: Economic concerns continue to take a toll on spending. More than half (55.3%) of US parents plan to spend less on back-to-school supplies, per a June 2024 report by JLL. Among those parents, one-third (34.9%) say they are spending less due to inflation.
“[Advertisers] should take advantage of all the opportunities during an event like Prime Day, including invite-only deals, limited items, and other tactics that would drive a consumer to say, ‘I can’t wait. I’m just going to buy this now,’” Stambor said.
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