Amazon.com, Inc. AMZN recorded its biggest sales event in history this Prime Day weekend. The world's largest e-commerce company sold over 200 million items through independent sellers during the Prime Day event held on July 17 and 18, making it a "huge success," according to Doug Herrington, CEO of Worldwide Amazon Stores.
“We love helping Prime members save money, and Prime Day is the ultimate celebration of the savings, selection, and convenience that Prime membership provides customers looking for shopping, entertainment, food delivery, and more," Herrington stated in a news release.
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Amazon's annual event, a major sales driver, has also had significant ripple effects across the retail sector. Other retail giants like Walmart and Costco also stepped up their game to offer steep discounts.
Amazon
Amazon.com, Inc. AMZN created Prime Day in 2015 to celebrate its 20th anniversary and to boost Prime memberships. Since then, it has grown into a massive global event, with millions of deals across virtually every product category.
Adobe Analytics predicted Amazon's sales to hit $14 billion this Prime Day event, up 10% year-over-year. However, total sales in America are estimated to have crossed $14.2 billion. Furthermore, on the first day of the event itself, total sales crossed $7.2 billion.
Amazon's total revenues are expected to amount to $158.19 billion for the current September quarter, marking an 11.9% rise year-over-year. The consensus EPS estimate of $1.15 for the ongoing quarter indicates a 33.7% increase from last year.
Amazon's shares have risen by over 36% over the past year, outperforming the tech-focused Nasdaq composite Index's 14.5% returns.
Walmart
Walmart Inc. WMT, the retail giant and Amazon’s biggest competitor, has not remained idle despite Prime Day’s success. Walmart has strategically positioned its sales events around the same time, offering competitive deals to attract bargain hunters. The company launched Walmart Deals to compete with Amazon Prime Day, offering an exclusive lineup of discounts across its online and physical stores.
This comes weeks after the company hosted Walmart+ week, a seven-day event during which Walmart subscription holders received innumerable discounts on a wide range of products. This summer, Walmart has benefited from the increased seasonal demand as consumer spending ramps up.
A survey conducted by Numerator found that 35% of respondents shopped from Walmart during the Walmart Deals event. According to Adobe Analytics, consumers spent a record $7 billion on online shopping outside of Amazon on July 17.
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Alibaba
Alibaba Group Holding Limited BABA is on track to recover its market share after a brutal past couple of years. It was charged with antitrust allegations and underwent a robust corporate structure overhaul. To bolster shareholder confidence, Alibaba announced an increase in its share buyback program by $25 billion in May, extending through March 2027.
Nonetheless, the Chinese e-commerce company is poised for significant growth in 2024, with projections indicating a 20% increase in gross merchandise volume (GMV) to $60 billion, up from $50 billion in 2023. Alibaba's highly coveted Singles Day event in November is often compared with Amazon's Prime Day and Black Friday.
The retailer launched "Alibaba Guaranteed" in June to garner positive consumer sentiment as part of its growth strategy.
"Alibaba Guaranteed marks an exciting new chapter for SMEs and global sourcing as it will help to redefine the fulfillment standard of B2B cross-border trade," Alibaba's president Zhang Kuo said, "Global sourcing can be a complex process with many moving parts, but Alibaba Guaranteed can help SMEs navigate it with greater ease."
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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