Prime Day 2023: Amazon Analysts Estimate Deeper Discounts Amid Competition from Walmart and Best Buy

Amazon.com Inc AMZN looks to lure U.S. shoppers on Tuesday with deeper discounts on a wide range of goods and services during this year's "Prime Day" 48-hour shopping event, including its first-ever travel discounts.

CFRA Research analyst Arun Sundaram said Amazon's U.S. Prime Day discounts this year are mostly deeper, marking 60% off Gap, Inc GPS clothing, 50% off on Sony Group Corp SONY headphones, and 40% off Peloton Interactive, Inc PTON exercise bikes, Reuters cites Bank of America.

Also Read: Union-led Strikes Continue in Britain as Amazon Workers Join Protest during Prime Day

According to Adobe Inc ADBE, in 2022, U.S. online sales during Amazon's Prime Day shopping event reached nearly $12 billion, up 8.5% year-on-year.

Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said Amazon Prime sales growth would be slower this year due to post-pandemic recovery, with consumers looking to spend more on experiences, travel, and entertainment. He predicted Prime Day 2023 might add about $4 billion - $6 billion of incremental revenue for Amazon, up 10% - 16% year-on-year.

Criteo S.A.'s CRTO Global Chief Revenue Officer Brian Gleason said such discounts may appeal more to shoppers in a more challenging economy.

Related: Amazon Set For Record-Breaking Prime Day Despite Economic Frugality

Amazon is also offering its first-ever Prime Day travel discounts this year, partnering with travel booking site Priceline to offer an additional 20% off on Priceline's Hotel Express deals, which offers 60% off hotels.

Prime Day will likely encounter stiff competition from other retailers like Walmart Inc WMT, Best Buy Co, Inc BBY

Bank of America projects that this year's Prime Day sales event will generate $12 billion in gross merchandise value (GMV) for Amazon in the U.S., up 12% Y/Y.

Reportedly, Amazon plans yet another Prime sales event this year. The company has notified its marketplace vendors to submit deals for a "Prime Fall Deal Event" beginning in the fourth quarter. 

Price Action: AMZN shares traded higher by 0.72% at $128.03 premarket on the last check Tuesday.

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