Amazon fans worldwide are celebrating the first annual Prime Day, a holiday developed by the online giant especially for its most loyal consumer base.
For today only, Amazon promises to give Prime subscribers access to deals that meet – and even exceed – Black Friday. The branded holiday undoubtedly has some retailers shaking in their boots. For example, Walmart has retaliated by opening steep discounts to all shoppers.
But will Prime Day truly be a hit with consumers? Will the holiday drive consumers to sign up for the Prime service and capitalize on these can’t-miss deals? The RTP editorial team shares their thoughts:
Debbie Hauss, Editor-in-Chief: Judging by Walmart’s reaction, Prime Day is poised to have quite an impact. I am a member, so I’ll be checking it out, but probably not exactly at midnight when it launches. What’s great for new customers is that they can sign up for a 30-day free preview, so they could potentially take advantage of Prime Day offers for free to find out if they are interested in paying the annual $99 fee to keep the service. My other question/concern is how the site will handle all the traffic. This promotion is getting a lot of media coverage so I hope the company has planned for handling all the activity.
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Alicia Fiorletta, Senior Editor: While I don’t think Prime Day will have a significant impact on Amazon’s annual sales, I do think it will impact long-term loyalty and lead to a boost in Prime memberships. I think this is a really effective model that aims to show appreciation to Amazon’s most loyal and profitable consumers (Prime members). I also think it’s a great marketing ploy; a way for Amazon to stay top-of-mind while celebrating its 20th anniversary as a business. I’ll definitely be keeping my eyes and ears open on how consumers react, but judging by the breadth and depth of deals available, I personally will be checking it out.
Rob Fee, Managing Editor: With its allusions to offering better deals than Black Friday, it seems that Amazon is embracing the Christmas in July concept that retailers like Best Buy and Target have used in the past. With all the promotion and media attention this event is getting, I expect a nice bump in Amazon’s sales and new Prime members. If the event proves successful, I wouldn’t be surprised if it happens again in 2016. I’m also finding it interesting to learn how other retailers have reacted to Prime Day. Walmart, for example, is attempting to one up Amazon by offering its own special deals and adjusting its free shipping threshold to $35. What’s more: Walmart’s promotion lasts for 90 days. It seems that Prime Day could have a positive impact on shoppers even if they don’t shop on Amazon.
Kim Zimmermann, Senior Managing Editor: I’m not a huge online shopper, but I will probably at least check out Prime Day. It’s a good way for Amazon to gain some noise and all of the news outlets and social media have been buzzing about it. But Amazon is a highly competitive, low-margin business and I don’t really see this move boosting profits.
Glenn Taylor, Associate Editor: The marketing tactic is a good way to bring in Prime members, as the free month provides value to those who may be hesitant at the $99 per year price tag. I’m not personally a Prime member, but I’ve certainly given signing up a thought now that Prime Day is here. Additionally, Walmart’s entrance into the market can only help the consumer make a better decision for their purchasing needs by giving them the cheaper option that Amazon isn’t providing. While there is going to be competition there, there are plenty of customers who have different purchasing needs/desires that one of the services may be able to fulfill better than the other.
Brian Anderson, Associate Editor: This is a clever way for Amazon to get more people to trial their Prime service. A deal-savvy shopper will not mind signing up for a trial if it provides them some decent discounts, leading to Amazon having a better chance of converting them into Prime subscribers. Only time will tell if Amazon will see success; I know that oftentimes I sign up for these services for the incentive, then never convert into a full-time customer. It all depends on the types of deals being offered and whether or not consumers see the value in their services.
Do you think Prime Day will be a hit with shoppers? Will you check out the shopping event? Share your thoughts and feedback in the comments section below!
