Amazon Prime Day Sales Plummet On First Day

New data from Momentum Commerce shows that Amazon’s decision to extend Prime Day from two to four days backfired—Day 1 sales plummeted, marking a grim start. Shoppers are filling their carts but holding off on purchases, hoping for deeper discounts. Meanwhile, spending trends are soft, reinforcing the cautious consumer outlook echoed by several research desks we track.

Bloomberg first cited new data from Momentum Commerce on Wednesday afternoon, which tracks 50 brands across various product categories and price points. The data showed that sales on the e-commerce platform plunged 41% on Tuesday compared to the first day of Prime Day 2024. The sluggish start raises concerns about Amazon’s decision to extend the mega discount event.

Momentum CEO John Shea commented on Amazon’s big gamble, noting that the extended sale has given consumers more opportunity to browse and „treasure hunt.” He added that a shorter Prime Day typically drives higher sales due to a greater sense of urgency.

Data from research firm Numerator reveals that the average household is spending less on Prime Day this year—$106 compared to $110 at the start of last year’s event. The average item price is also down, at $25.46, compared to $28 a year ago.

Prime Day tends to be a high-frequency snapshot of midsummer consumer sentiment, and it may signal deeper caution for the economy. Momentum Commerce data for the first four hours of Prime Day also showed weak consumption trends.

• Amazon Prime Day Kicks Off With Disappointing Early Sales

Despite the gloom, research firm Adobe estimates shoppers across all retailers on Tuesday spent 9.9% more than on the same day one year ago. Prime Day also overlaps with sales from Walmart and Target.