Amazon Prime Day Wins Over Gen Z And Millennials, But Boomers Remain Elusive

Leading ecommerce company Amazon.com Inc AMZN hosted its recent Prime Day shopping holiday over the two days of July 11 and July 12. The holiday was first launched back in 2015 and offers exclusive deals for Amazon Prime subscribers.

Here’s a look at how different age demographics value the annual shopping holiday.

What Happened: Amazon reported record first-day sales for Prime Day 2023 with $6.4 billion spent, an increase of 6% year-over-year.

Over 375 million items were purchased on Amazon in the first 24 hours, according to the company.

Morning Consult conducted a new survey to assess which age groups were the most active on Amazon during the Prime Day event, and how much they spent.

The survey found that 45% of all U.S. respondents said they shopped during Amazon’s 2023 Prime Day. Amazon Prime members were more likely to shop during the holiday, with 62% polled saying they bought something during the 2023 sale.

Here’s a look at the survey results with the percentage of people who said they shopped during Prime Day 2023:

• Gen Z: 58%
• Millennials: 53%
• Gen X: 40%
• Baby Boomers: 37%
• The survey found that 53% of Gen Z adults and 62% of Millennials said they often or sometimes shop during Prime Day. Contrarily, 52% of Gen Xers and 54% of Baby Boomers reported that they seldom or never shop during Prime Day.

Amazon reported that fashion and beauty were among the top-selling categories on the site during Prime Day. These categories have been increasingly popular with Gen Z women, which may have contributed to the strong demand from the demographic.

The ecommerce giant also increased its influencer marketing for Prime Day 2023, including increased attention to TikTok. This effort from Amazon may have captured a larger share of the Gen Z and Millennial audience, given their preference for different social media platforms.

Related Link: Americans Are Splurging On Amazon Each Month, For Some It Could Be More Addictive Than Alcohol 

Why It’s Important: The annual shopping holiday remains a key to Amazon’s success and can help increase quarterly sales along with annual subscriptions to the Prime subscription service.

The survey found that around one-third of respondents said they spent more than anticipated during the Prime Day event.

Median spending during Prime Day was around $200, according to the survey. Here’s a look at the spending amounts, as determined by the percentage of responses gathered in the survey.

• $1 to $50: 13%
• $51 to $100: 19%
• $101 to $200: 17%
• $201 to $300: 13%
• $301 to $400: 8%
• $401 to $500: 4%
• More than $500: 11%

The rest of the respondents indicated that they didn't make any purchases during the event.

Amazon.com is expected to report second-quarter financial results in the coming weeks. While the quarter won’t include the results of Amazon Prime Day, the company could share some color on how successful the annual holiday was and provide updated guidance for the third quarter.

AMZN Price Action: Amazon shares trade at $131.86 versus a 52-week trading range of $81.43 to $146.57. Shares of the ecommerce company are up over 50% year-to-date in 2023.

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