Amazon AMZN is gearing up for its global mega summer shopping event — Prime Day. The even is set to kick off on Jul 15, 2019. Prime Day will be celebrated for 48 hours, which is the longest in the company’s history.
The company is striving to generate impressive results during the event on the back of more than a million attractive deals for shoppers. This is evident from the company’s collaborations with popular actors, musicians and artists.
This will enable Prime members to enjoy outstanding deals on products introduced by Will and Jaden Smith, Kobe Bryant, Kristen Bell, Zac Brown, Marshmello, JoJo Siwa, Rhett & Link and Mark Wahlberg among others.
Currently, Prime shoppers are eligible to avail these deals through Prime Day at amazon.com/celebdeals.
Strategy to Aid Performance
Amazon’s intention of providing access to certain exciting deals on pre-sale seems to be an early deal strategy, which is likely to accelerate sales during the event under review.
Notably, products from the abovementioned celebrities have become popular among customers. Amazon’s initiative to sell the products at discounted prices on its online platform is a major positive. Making the offers available before Prime Day will enable the company to gain traction across fans of these celebrities.
Apart from these products, the company has announced early deep discounted deals on its devices like Fire TV Recast, Ring Video Doorbell and Echo Dot. Further, it is offering special discounts on services that include Kindle Unlimited, Audible, Amazon Music and Prime Video since the end of June.
We believe that the early offering of discounted products and services is likely to drive its Prime Day momentum. Also, it will enable the company to attract more shoppers to join Prime.
All these are expected to drive Amazon’s top line in the near term.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote
Prime: A Key Catalyst
Strengthening delivery and shipment services, expanding music and video content as well as introducing customer-friendly offers and robust loyalty system via Prime subscription service are Amazon’s key growth catalysts in the retail space.
Further, Prime Day — the annual celebration of Prime — rakes in profits for the company and benefits shoppers as well as third-party sellers.
In 2018, the 36-hour event became a blockbuster, wherein Prime members shopped more than 100 million products across the world. These customers enjoyed benefits on purchases of grocery and fresh food items, electronic appliances as well as home security products.
Additionally, the sales generated by small and medium sellers on the company’s e-commerce platform exceeded $1.5 billion during Prime Day 2018.
Amazon has doubled its efforts this year by making the products from U.S.-based small- and medium-sized innovators, artisans and entrepreneurs available for Prime Day sale via Amazon Storefronts, Amazon Handmade as well as Amazon Launchpad.
Further, Prime members will be able to shop during the upcoming mega event by using their voice commands via Alexa-enabled devices.
All these endeavors are likely to pose threat to core as well as online retailers like Walmart WMT, Target TGT, eBay EBAY and many more.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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