Amazon to Hold Prime Day for Two Days Starting Next Month on the 13th... 4Q Sales Expectations Rise

Year-end Shopping and COVID-19 Drive Surge in Online Demand
Amazon's Record-Breaking Q4 Sales Expectations Rise

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Amazon's annual discount event, Prime Day, will be held for two days from October 13 to 14, according to a report by The Wall Street Journal (WSJ) on the 28th (local time).

Amazon Prime Day is an annual event held every July since 2015 to boost summer sales, traditionally considered an off-season for online shopping malls, and is conducted for Amazon Prime members. There are approximately 150 million Amazon Prime members worldwide who pay $119 (about 139,000 KRW) per year.

This year, due to the COVID-19 pandemic, the event was postponed several times and will be held for two days starting next month on the 13th.

Amazon has not disclosed the revenue from Prime Day so far, but some analysts estimate that Amazon earned more than $7 billion (about 8.2 trillion KRW) from Prime Day last year.

Last year, Amazon sold more than 175 million items during Prime Day. This surpasses the combined sales volume of previous events such as Black Friday and Cyber Monday.

With Amazon Prime Day taking place in October this year, expectations for fourth-quarter sales are high. By holding Prime Day in October, which usually takes place in summer, overlapping with the year-end holiday shopping season, and with increased online shopping demand due to the COVID-19 pandemic, Amazon is expected to achieve record sales in the fourth quarter of this year. In anticipation of this, Amazon has already hired an additional 100,000 workers at logistics centers in the U.S. and Canada.

Amazon has made various efforts to attract customers for Prime Day. Last year’s event featured a concert by singer Taylor Swift and sales of new beauty products by Lady Gaga. Amazon stated, "We will work with Hollywood stars and influencers to surprise customers with unique experiences."

Competition among retailers is also expected to be fierce in line with Amazon’s Prime Day. Last year, over 200 retailers including Best Buy and Walmart offered significant discounts to coincide with Amazon’s Prime Day. This year, major retailer Target is reportedly holding its own online sales event on the same day as Amazon.

Jeff Wilke, former head of Amazon’s Worldwide Consumer division, said, "Amazon Prime Day will be an opportunity for our premium members to finish their holiday shopping early."