Holiday promotions got off to a slow start this week as consumers in Florida braced for the second of two big storms in as many weeks. Amazon’s Prime Big Deal Days concluded yesterday while Hurricane Milton made landfall near Tampa Bay.
The extreme weather left its mark during a month when many have already started their holiday shopping. Salesforce found U.S. digital traffic down 6% in Southeast states in the days preceding Prime Big Deal Days.
Nearly a third of consumers begin holiday shopping between July and October, according to a recent Gartner survey. Amazon began its October Prime event in 2022. Retailers like Target, Walmart and Wayfair followed suit this year with promotions of their own.
The weather’s impact on holiday shopping
“Natural disasters and significant weather events regularly interrupt holiday sales periods,” said Gartner retail analyst Kassi Socha.
Early Prime day numbers suggest this year was particularly challenging due to weather. The first day of Prime Big Deal Days, October 8, found U.S. online traffic down 4% and online orders down 5%, according to Salesforce.
“There is evidence that current events in the U.S. are resulting in a quieter than planned Prime event,” said Caila Schwartz, director of consumer strategy and insights at Salesforce.
Globally, on October 8, web traffic was up 2% year-over-year, and order growth down only 1%. In Florida alone, traffic was down 10% October 5-8.
In Europe, traffic was up 10% on October 8 and online orders were up 4%.
Part of the U.S. slow down might have resulted from marketers pulling back on ads and messages to let affected customers prepare for storms and recover.
“As brands continue to prioritize the health and safety of their customers, marketing efforts have been pulled back, contributing to the fall in overall YoY results so far this week,” said Schwartz.
The severity of this year’s storms could also affect deliveries, not just traffic and orders.
“The effects are more widely felt in the supply chain and logistic side,” said Socha. “For example, package delivery gets delayed. The types of items purchased by consumers in impacted areas will shift to mandatory items and consumables (shelf-stable food, flashlights, portable chargers) versus discretionary items.”
Services and perks for holiday shoppers
Even without the extreme weather, marketers are adding extra services and perks to sweeten the deal for holiday shoppers.
To entice early shoppers, and to compete with Amazon, many retailers extended return policies to include October purchases.
“Several retailers have also pulled forward their extended holiday return policy to cover the October promotional periods,” said Socha. “Macys, Newegg, Nordstrom Rack all began offering extended return policies for items purchased in early October through end of December to extend into mid-January.”
Socha added: “Many retailers like Target and Walmart are using the promotional period to amplify the benefits of joining their subscription programs (Target 360, Walmart+).”
The recent Gartner survey found 57% of consumers plan to use one or more value-added services during the holiday season.
These services include Buy Online, Pickup In Store (BOPIS), curbside pickup, same-day delivery or expedited shipping.
Price still a top factor for holiday shoppers
Many consumers believe better prices are to be found online than in-store. Twenty percent of consumers plan to up their online shopping this year in search of better prices, the same Gartner survey found.
Salesforce expected discounts to reach 22% in the U.S. this week, with the biggest savings to be found in general apparel, health and beauty, and home verticals.
Because price is a top factor for shoppers, Adobe predicts that holiday promotions will focus on discounts, including discounts for expensive goods.
Dig deeper: 2024 online holiday spending set for record year with $240 billion in sales
The post Prime Big Deal Days kicks off holidays with slow start appeared first on MarTech.
**Prime Big Deal Days Launches Holiday Season with Modest Beginning**
As the holiday season approaches, retailers and consumers alike are gearing up for the annual shopping frenzy. This year, Amazon has introduced a new event, **Prime Big Deal Days**, which officially kicked off the holiday shopping season with a modest but noteworthy start. Held in early October, this two-day event was designed to offer early discounts on a wide range of products, giving Prime members a head start on their holiday shopping.
### What Are Prime Big Deal Days?
Prime Big Deal Days is Amazon’s latest promotional event, aimed at providing exclusive discounts to its Prime members. The event, which took place on October 10 and 11, 2023, was positioned as a precursor to the traditional holiday shopping events like Black Friday and Cyber Monday. While it shares similarities with Amazon’s well-known Prime Day, which occurs in July, Prime Big Deal Days is unique in its timing, occurring just as consumers begin to think about their holiday purchases.
The event featured discounts across various categories, including electronics, home goods, fashion, beauty, and more. Amazon also emphasized deals on its own devices, such as Echo smart speakers, Fire tablets, and Kindle e-readers, which have become a staple of its discount events.
### A Strategic Move to Capture Early Holiday Shoppers
Amazon’s decision to launch Prime Big Deal Days in October reflects a broader trend in the retail industry: the extension of the holiday shopping season. In recent years, retailers have increasingly sought to spread out the shopping period, offering early deals to entice consumers to start their holiday shopping sooner. This strategy helps alleviate the pressure on logistics and shipping during the peak holiday season while also allowing consumers to take advantage of discounts without waiting until the last minute.
For Amazon, Prime Big Deal Days serves as a way to lock in early holiday sales and boost its Prime membership base. By offering exclusive deals to Prime members, Amazon incentivizes shoppers to either maintain or sign up for a Prime subscription, which comes with benefits like free shipping, access to Prime Video, and more. This not only drives immediate sales but also strengthens customer loyalty in the long term.
### Modest Start, But Room for Growth
While Prime Big Deal Days generated buzz, its impact was more measured compared to the larger shopping events like Prime Day or Black Friday. Early reports suggest that while the event saw a decent level of participation, it did not create the same level of excitement as Amazon’s flagship Prime Day. Several factors contributed to this more modest beginning.
First, the timing of the event in early October may have caught some consumers off guard. Many shoppers are still in the early stages of planning their holiday purchases and may not have been ready to commit to big-ticket items. Additionally, with inflation concerns still looming, consumers may be more cautious about their spending this year, waiting for deeper discounts closer to the traditional holiday shopping period.
Second, the competition in the retail space has intensified. Other major retailers, such as Walmart and Target, have also launched early holiday sales, offering similar discounts to attract shoppers. This has diluted the impact of Amazon’s event, as consumers now have more options to choose from when looking for deals.
### Consumer Behavior and Economic Factors
The modest start to Prime Big Deal Days also reflects broader consumer behavior trends. With inflation still affecting household budgets, many shoppers are prioritizing essential purchases over discretionary spending. According to a survey conducted by the National Retail Federation (NRF), nearly 60% of consumers are planning to be more budget-conscious this holiday season, focusing on finding the best deals and stretching their dollars further.
Additionally, the ongoing uncertainty in the global economy has led to more cautious spending habits. Rising interest rates, concerns about a potential recession, and fluctuating energy prices have all contributed to a more conservative approach to holiday shopping. As a result, many consumers may be waiting for deeper discounts later in the season before making significant purchases.
### The Future of Prime Big Deal Days
Despite its modest start, Prime Big Deal Days has the potential to grow into a significant event in the coming years. As consumers become more accustomed to the idea of early holiday shopping, events like this could gain more traction. Amazon’s ability to offer exclusive deals to its Prime members gives it a competitive edge, and the company is likely to refine and expand the event in the future.
Moreover, as the retail landscape continues to evolve, Amazon’s focus on convenience, fast shipping, and a wide selection of products will remain a key driver of its success. Prime Big Deal Days is just one piece of Amazon’s broader strategy to dominate the holiday shopping season, and it will be interesting to see how the event evolves in the years to come.
### Conclusion
Prime Big Deal Days may have launched the holiday shopping season with a modest beginning, but it represents a strategic move by Amazon to capture early holiday sales and strengthen its Prime membership base. While the event didn’t generate the same level of excitement as Prime Day or
Recent Comments