Ah, Prime Day: summer’s biggest online shopping event. Record-high inflation and whispers — or shouts? — of a looming recession did not deter shoppers from spending more than $12 billion on Amazon’s annual sales event, up 8.1% year-over-year from 2021. Here’s a breakdown of the top products customers searched for, the increase in users and the way advertising costs grew for sellers. Plus, we’ll give you our predictions for what’s in store this peak holiday season.
Amazon customers purchased more than 300 million products during this year’s Prime Day, up about 20% from the approximately 250 million products sold during the same period in 2021. The top-selling categories? Consumer electronics, household goods and Amazon-branded devices — indicating a shift in the shopper mindset to focus more on saving and buying the essentials. In contrast, 2021 Prime Day product categories reflected a collective urge to get back to in-person events with health and beauty, consumer electronics, and apparel and shoes ranking in the top slots.
This year’s top Prime Day categories: Consumer electronics, household goods and Amazon-branded devices
WBX Commerce data shows the number of unique users who clicked on an Amazon listing jumped 52% in 2022 versus 18% in 2021. Shoppers purchased roughly 100,000 products per minute during the 48-hour event, with average products costing less than $20. However, customers weren’t strictly committed to the essentials: WBX Commerce data shows that Apple Watches, laptops and TVs topped the search list this year. At the end of the day, despite inflation woes and trends indicating a recession, shoppers wanted to do just that — shop.
Despite inflation woes and trends indicating a recession, shoppers wanted to do just that — shop.
Prime Day presents brands with an enormous opportunity to grow sales, but you have to pay to play. During the two-day event, advertisers spent four times more on daily ad spend than the previous 30 days. WBX Commerce data shows that CPC (cost-per-click) increased by 25% from 2021.
So what does this mean for the 2022 holiday season? Even though this year’s Prime Day raked in record-high sales, brands should consider the effect of the rising cost of goods on consumers as we enter the peak season. Many shoppers are tightening their belts and planning out their holiday spending now. Brands should consider spreading out their advertising and promotions to give customers a longer runway to buy their holiday gifts. In years past, it made sense to run your biggest holiday sales around Thanksgiving. But with everyone feeling the pressure of higher groceries and fuel, consumers may need more time to space out their purchases leading up to the holidays. Additionally, while global supply chain stress is easing, it’s still much higher than pre-pandemic levels, so be sure to factor that into your holiday fulfillment planning.
Brands should consider spreading out their advertising and promotions to give customers a longer runway to buy their holiday gifts.
The good news? While customers may not be splurging as much on novelty or big ticket items due to rising inflation, when it comes to consumer packaged goods (CPGs), shoppers are looking for deals so they can continue buying their beloved brands. Brands should keep this in mind as they develop and execute their advertising strategies heading into Q4. Plus, Amazon recently announced Prime Fall, a second deal event for its Prime members, which presents an excellent opportunity for brands to get ahead on holiday sales.
WBX Commerce has predictive analytics and decisioning tools to help brands stay on top of customer shopping trends and our in-house experts can guide you on advertising strategies to beat the competition. Reach out today to learn how we can help your brand grow while navigating the ever-shifting economic landscape.