While retail sales usually slump in the summer as consumers spend their hard-earned money on vacations, Amazon has created its own method of combating lower sales. Amazon launched its first Prime Day in 2015, and now the event is such a hit that it is benefiting other companies as well.
Prime Day hasn’t only increased sales for Amazon this time of year, but for its competitors as well. As searches for Amazon went up 544% in the week leading up to Prime Day, searches for eBay went up 27%, Walmart 143%, and Best Buy 712%. This suggests that consumers are doing their research when it comes to Amazon’s prices, and are comparing prices with other companies instead of simply falling for the hype of Prime Day.
Amazon’s goal with Prime Day is to ultimately get more Prime members, but are they successful? There’s no doubt that Prime Day has only become more popular every year – this year their site even crashed:
In the inaugural year, 2015, Amazon drove nearly $1bn in revenue, up 69% in 2016, 59% in 2017 and that upward trend is expected to continue in 2018 with a predicted $3.4bn over the 36-hour period.
But how many of these customers stick around?
Analyzing the weeks leading up to Prime Day, comparing the first of the month to the day prior to Prime Day, Captify’s Search Intelligence saw a 725% increase in users searching for Amazon Prime Trials, a 284% increase in users searching around Amazon subscriptions, and a 422% increase in users searching around deals…
Comparing the day before and after, Captify’s Search Intelligence saw a 60% drop off for users searching for Prime trials. At the point consumers are searching for membership are they simultaneously already thinking of leaving? Captify also saw a 23% increase in users looking to cancel their Prime accounts on the day after Prime Day compared to the day before.
These statistics suggest that many users simply get Prime for the deals, then cancel soon after. This can only bode well for the rest of us – it proves that Amazon hasn’t taken over the world just yet!