Best-selling day of all times: Amazon generates billions on Prime Day

Best-selling day of all times: Amazon generates billions on Prime Day

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After the first Prime Day from Amazon in the year 2015 at least from the customer was rather a disappointment, it ran 2016 much better. However, in 2017, the shopping group once again put a big splash on it and drove a new sales record. At the very best day of the year, Black Friday, it would be hard for Amazon to exceed this record.

Turnaround in turnover?

As the company reported, the previous year’s sales record was even surpassed by a whopping 60 percent. In addition, the number of customers who have bargained at Prime Day has also improved by 50 percent, according to the online giant in a press release.

Amazon did not release exact figures on sales. The US newspaper Bloomberg, which counts on analyst studies by Cowen & Co. and JP Morgan, assumes that the company of Jeff Bezos has cracked the billion dollar sales. This is the triple the average daily turnover from 2016, the sheet continues.

Amazons own hardware runs best

The most sold product was the Echo Dot, the smaller version of Amazon’s intelligent echo speaker. In addition, customers here also had a look at the Fire TV Stick with Alexa voice remote control, Amazon announced.

Especially on its own hardware products Amazon on the Prime Day had given substantial discounts. While the echo speakers were 80 euros cheaper than on normal salesdays, the Echo Dot was reduced by 15 euros, the voice remote control cost instead of 39.99 euros only 29.99 euros.

Popular products are also the 15-month Playstation Plus membership and the SodaStream CRYSTAL 2.0 glass carafe water whirlpool, Amazon told further. But the business also appeared to be doing well in other categories: more than a million products were ordered in the fashion sector alone.

Amazon is not about sales

Behind the massive discounts that Amazon has given in particular to its own hardware, there is reason to believe: The company is likely to make money with the sale of its hardware products. Instead, the Seattle-based company is relying on revenue streams, such as the App Store, the Amazon Music offer, or Amazon Video, to generate customers with the most affordable devices.

This tactic is evident, as a glance at the business development proves: In the first quarter, the surplus rose by 41 percent to 724 million US dollars. In addition to the Amazon Web Services cloud platform, revenue pegs were, in particular, Amazons Prime Service, which offers users access to music and video streaming as well as free shipping options and other benefits for a subscription fee.

Accordingly, the annual Prime Day, which has already become a tradition, is also seen as a customer loyalty measure rather than a sales booster. On the partly significantly reduced products only Prime customers of Amazon access. A membership proposes 69 euros annually, for Prime members get besides free premium dispatch also access to the streaming service Amazon video and the music platform of Amazon.

 

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.

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