Prime Day 2016 reached historic levels for Amazon, with the e-Commerce giant touting that it had its “biggest day ever.” But that’s last year’s news. In its third year, the shopping day is projected to break new records, establishing itself as a cultural phenomenon alongside holiday favorites Black Friday, Cyber Monday and Singles Day.
So what can be expected for Prime Day 2017? Here are seven predictions from around the retail world for how the day is set to shake out.
1. Amazon is set to make $1 billion on Prime Day 2017
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JP Morgan analysts anticipate Amazon to once again have its “biggest day ever,” to the tune of $1 billion in revenue. While the goal is steep, Amazon already extended Prime Day sales by more than 50% in the U.S. and more than 60% worldwide in 2016. It’s reasonable to think that JP Morgan’s prediction of a 55% sales increase this year remains a possibility.
2. UPS and FedEx could be bigger winners than Amazon
CNBC’s Jim Cramer predicted that the two major delivery carriers will be the big winners on Wall Street come Prime Day. Despite the continued growth of Amazon’s distribution and delivery network, UPS and FedEx still deliver a majority of the retailer’s orders and have shown no signs of slowing down.
3. Fashion and grocery will take the big leap in 2017
In the wake of the Whole Foods acquisition, Kantar Retail said Amazon will look to draw shoppers to its various consumables channels, including AmazonFresh, Prime Now and Prime Pantry, to appeal to shoppers exploring grocery options. Additionally, timed with the introduction of Prime Wardrobe, Amazon is leveraging Prime Day promotions to create incentives for shoppers to try new programs such as sample boxes, subscriptions and Prime Wardrobe.
4. Mobile app usage to jump as much as 35%
App Annie forecasts Americans are poised to spend more than 5.5 million hours collectively in the Amazon Android phone app on Prime Day, marking an impressive 35% growth in time spent on the app from both last year’s Prime Day as well as Black Friday 2016.
5. Gen Z shoppers may take a back seat on Prime Day
While Amazon is synonymous with e-Commerce, the most online-savvy generation may not be as excited about Prime Day as everyone else. Yes Lifecycle Marketing reports that 31% of Gen Z consumers actually prefer to shop at non-Amazon retailers because they enjoy the in-store shopping experience, more than any other generation.
6. Amazon continues to prioritize acquisition and increasing Prime memberships
Amazon saw only 13.5% of its active customer base participate in Prime Day 2016, according to Slice Intelligence. But that relatively low number didn’t stop the retailer from achieving record one-day sales. The not-so-hidden purpose of Prime Day is to convince consumers to become Prime members. After all, a Morgan Stanley study indicates that Prime members spend nearly five times more in a year’s span than a non-Prime consumer.
7. Alexa will reach its jumping-off point
Much has been made of Amazon’s voice-activation software Alexa in recent months, but Prime Day 2017 will be the first major spending day where the technology has gotten significant exposure among shoppers. Alexa users will gain early access to more than 100 exclusive deals, adding more value to a product that is still gaining traction. It helps that Amazon is putting both the Echo and the Echo Dot on sale, giving new potential consumers the capability to use voice activation in other situations down the line.
