Prime Day 2024 expected to Break Records with $14 Billion in online spend
Adobe predicts record-breaking online sales of $14 billion for Prime Day 2024, fueled by steeper discounts and early back-to-school shopping.
A new report by Adobe Analytics predicts that the 2024 Prime Day event (July 16-17) will be a record-breaker, generating a total of $14 billion in online spending across the U.S. This represents a 10.5% increase year-over-year (YoY).
The predicted total spend of $14 billion for 2024 represents a 10.5% YoY increase. This suggests that the 2023 Prime Day event likely generated around $12.7 billion in online sales, assuming a linear growth pattern. Adobe's prediction signifies a potentially significant jump in consumer spending compared to the previous year, possibly fueled by:
Stronger Discounts: Consumers can expect steeper discounts this year, ranging from 9% to 22% off listed prices. Electronics are likely to see the biggest price cuts, with discounts reaching 22% compared to 14% last year.
Mobile Shopping Boom: The first day of Prime Day is projected to be the biggest mobile shopping day of 2024 so far, with mobile purchases contributing $3.4 billion, or 48.4% of the total online spend.
Early Back-to-School Shopping: The report highlights a surge in online spending for back-to-school items during the Prime Day period. This trend is likely due to a combination of factors, including attractive discounts and the later date of Prime Day compared to 2023 (July 11-12), placing it closer to the start of the school season for many districts.
Luís Daniel Rijo
Rise of Buy Now, Pay Later (BNPL) Services: The increasing popularity of BNPL services is evident, with these services driving over $39.7 billion in online spending between January 1 and June 30, 2024, reflecting a 12.1% YoY increase. Adobe anticipates a significant rise in BNPL usage during Prime Day, contributing an estimated $1.09 billion to $1.11 billion in online spend.
Overall E-commerce Growth: Despite economic concerns, the report indicates continued growth in e-commerce.Year-to-date online spending in the U.S. has reached $502.9 billion, reflecting a 7.4% YoY increase. This growth is attributed to net-new demand rather than rising prices, with the Adobe Digital Price Index revealing a 22-month decline in online prices across various product categories.
The Adobe Analytics report leverages data from Adobe Experience Cloud, a suite of software products trusted by over 85% of the top 100 U.S. online retailers. This data provides a comprehensive view of U.S. e-commerce by analyzing over one trillion visits to retail sites, 100 million stock-keeping units (SKUs), and 18 product categories.
The Adobe Analytics report paints a promising picture for the 2024 Prime Day event, suggesting strong consumer spending driven by significant discounts and a strategic alignment with back-to-school shopping needs. The continued growth of e-commerce and the increasing adoption of BNPL services further underscore the evolving online shopping landscape.