Prime Day: Third-Party Sellers and Retailers Benefit Too

On July 11 and 12, Amazon will once again offer Prime members discounts on select items across multiple product categories and brands. But Prime Day is not just about Amazon: As the largest marketplace in the West, the shopping event also sheds a “halo effect” on other platforms looking to increase their sales by attracting shoppers to their site with their own special offers. 

Below, we examine whether non-Amazon brands and retailers benefit from the number of shoppers who are scouring the internet to get deals on their purchases. 

Consumers Consider Non-Amazon Platforms, but Prefer Amazon for Purchases 

Prime Day 2022 has reportedly sparked a surge in sales for various retail platforms, as they capitalize on the heightened consumer interest and offer their own deals. According to a recent Numerator verified buyers survey, a significant majority of respondents (62%) stated that they refrained from making any purchases on non-Amazon websites during Prime Day. However, 13% expressed potential interest in doing so in the future, while 24% confirmed having already made purchases from non-Amazon sites during the event.

Prime Day: Amazon Mostly Drives Sales on Its Own Platform 

While the impact of Prime Day on other platforms may not be overwhelming, a notable portion of respondents still seize the opportunity to explore alternative deals. According to the survey, 34% of participants explicitly stated that they compare prices at other retailers, while a larger group of users (44%) solely considered Amazon for their shopping during the event. These findings suggest that Prime Day primarily serves as a catalyst for sales on Amazon itself. However, it's important to note that Amazon functions as a dual entity, showcasing both its own branded products and those from external sellers on its marketplace.

Smart Home Device Sales Dominate During Prime Day

Amazon Dominates Smart Home Device Sales on Prime Day, with 62% of consumers purchasing devices like the Fire TV Stick or Echo from Amazon's own brand. During Prime Day, Google products featuring Google Assistant and Apple products with Siri tend to be overlooked by consumers. However, when it comes to other product categories, Amazon-branded items were not as prevalent. Only 41% of consumers bought Consumer Electronics, 37% purchased Household Essentials, 33% bought Grocery items, and 28% opted for Apparel & Shoes that were Amazon-branded.

But: Many respondents were unsure if the products they bought were from Amazon's own brand, highlighting the difficulty in keeping up with their acquisitions and brand launches. Additionally, the mix of third-party and Amazon-branded products on the platform makes it harder for consumers to identify the product origin accurately.

Prime Day's Impact: A Win-Win for Amazon and Third-Party Sellers 

Numerator's findings on Prime Day 2022 reveal that the anticipated halo effect, drawing shoppers to non-Amazon platforms, is not as significant as expected. Only 24% of consumers made purchases from external sites, and just over a third considered other retailers for deals. As a result, Prime Day predominantly favors Amazon's marketplace deals. However, it is evident that Prime Day remains a significant driver of sales, benefiting both Amazon and third-party sellers on the platform.