Adobe Analytics on Amazon Prime Day: online sales total of USD 14.2 billion for US retailers

Adobe has released new shopping insights from Amazon Prime Day, revealing that US retailers' online sales totaled USD 14.2 billion—a growth of 11% year over year (YoY).

Consumers spent $7.2 billion on July 16 (Tuesday), the first day of the Prime Day event, representing 11.7% growth year-over-year (YoY). On the second day (July 17, Wednesday), consumers spent $7 billion online, up 10.4% YoY. This brought the final 2-day total to $14.2 billion, up 11.0% YoY and setting a new record for Prime Day.

The research highlights a shift in consumer behavior towards mobile shopping, with nearly half (49.2%) of online purchases made via mobile devices. Across both days, USD 7 billion was spent through mobile devices, reflecting an 18.6% YoY increase. This mobile shopping trend indicates a significant change as consumers move away from desktop shopping.

Increases by product category 

Adobe Analytics further broke down the sales growth by category, showing strong demand for various products. Online sales for electronics surged by 61%, small kitchen appliances increased by 76%, and apparel saw a 36% rise. The report attributed part of the growth to back-to-school shopping, with the Prime Day event occurring closer to the start of the school year than the previous year. Items such as backpacks, lunch boxes, and stationery witnessed a 216% increase in sales, while kids' apparel sales rose by 165% during the event.

Additionally, the report outlined a notable product refresh cycle, with consumers investing in new electronics and home furnishings. Among electronics, sales of tablets increased by 117%, televisions by 111%, and headphones and Bluetooth speakers by 105%. Sales of fitness trackers were up 88%, computers up 80%, smartphones up 71%, and cameras up 60%. 

In-home and furniture sales of small kitchen appliances were up 76%, kitchenware and cookware by 25%, mattresses by 21%, and home office furniture by 14%. Bedroom furniture sales rose by 11%. In the apparel category, suits sales rose 36%, outerwear 19%, and footwear and accessories 17%.

The rise of Buy Now, Pay Later solutions 

The report also highlighted that the "Buy Now, Pay Later" (BNPL) payment method accounted for 7.6% of online orders, generating USD 1.08 billion in online spending, up 16.4% YoY. This reflects a growing preference among consumers for flexibility in payment options. Furthermore, the report noted that retailers leaned heavily toward discounts to drive growth, offering steeper discounts across various categories than the previous year. For instance, electronics discounts peaked at 23% off the listed price, up from 14% in 2023.

Additional Adobe Analytics insights

• Buy Now Pay Later (BNPL): Across the 2-day event, BNPL orders accounted for 7.6 percent of online orders. The flexible payment method drove $1.08 billion of online spend, up an impressive 16.4 percent YoY, as consumers seek more flexibility in managing their daily expenses.
• Discounts:  Since the 2023 holiday shopping season, retailers have leaned into discounts to drive growth, given an unpredictable demand environment. Shoppers found great deals across both days, with electronics peaking at 23 percent off the listed price (vs. 14 percent in 2023). Steeper discounting was also seen in apparel at 20 percent (vs. 12 percent in 2023), home/furniture at 16 percent (vs. 9 percent), televisions at 16 percent (vs. 5 percent), toys at 15 percent (vs. 12 percent),  appliances at 14 percent (vs. 7 percent), sporting goods at 11 percent (vs. 6 percent) and computers at 11 percent (vs. 8 percent).
• Impact of Social Media:  From email marketing to paid search, consumers were driven to U.S. retail sites differently. Adobe Analytics data profiles how much each channel contributed to online sales. Social networks saw a large lift in revenue contribution (up 11.1 percent across both days) — right behind the display (up 12.5 percent) — highlighting the impact of social content and influencers. Other notable sales drivers included direct traffic (up 10.7 percent), and affiliates/partners (up 8.2 percent).
• Curbside Pickup:  This fulfillment method was used in 18.9 percent of online orders across the 2-day event (for retailers who offer the service), again highlighting the staying power of a service that can provide speed and convenience. This is down slightly from last year at 20.2 percent.
• E-commerce Forecast: With the bump from the Prime Day event, Adobe expects $84.4 billion to be spent in July 2024, representing 8.2 percent growth YoY. By the end of September 2024 (nearing the Nov-Dec holiday shopping season), Adobe is forecasting $732 billion in online spend for the year, representing 7.3 percent growth YoY.

Impact of inflation:  Strong consumer spending this year has been driven by net-new demand, as opposed to higher prices. The Adobe Digital Price Index, which tracks online prices across 18 product categories, shows that e-commerce prices have fallen for 22 months now — down 4.2 percent YoY in June 2024. Adobe’s numbers are not adjusted for inflation, but if online inflation were factored in, there would be even higher growth in topline consumer spend.