Amazon's Christmas in October

Retail

Published: October 10, 2023 9:40 am

Amazon has another Prime Day, of sorts, running October 10 to 11. It’s a wonder Amazon would potentially steal from holiday sales, but the move is clever.
[in-text-ad]
Prime Day has become part of Amazon’s success, but it usually is in July. Started in 2015, it is, according to Amazon, its biggest deal day ever. The most recent Prime Day brought in $13 billion. Amazon sold over 300 million items. (The 20 American companies with the worst reputations.)

Why have a new Amazon Prime Day in October? There may be several reasons. One is that it takes holiday sales away from Walmart, Target, Costco and an army of smaller retailers. Amazon picks up market share, albeit earlier in the year. Amazon has hurt many retailers over the past decade and perhaps has killed some. Walmart and Costco, in particular, have been resilient. Walmart does not break out its e-commerce revenue but says it is the fastest-growing part of its business.

As for stealing sales, October Prime Day may actually help Amazon’s holiday sales. Amazon signs up countless new Prime members on Prime Day. Prime brings in $14.99 a month or $139 a year. Amazon Prime members buy 2.5 times more merchandise on Amazon than non-Prime members, according to analysts. If so, Amazon has picked up millions of people more likely to buy during the holidays. It has built-in its success beforehand. Its competitors do not have a similar mechanism.

ALSO READ: America’s 50 Richest Billionaires and When They Got That Way

One thing to remember about Amazon is that its prowess as a retailer has been built over decades of experience in e-commerce. While its revenue growth rate has slowed, it holds a commanding market share lead. (This is the primary reason the government has just sued it.)

If Amazon’s Prime in October is stealing from its holiday sales, it is stealing from the largest retailer in the sector.

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.