Before the traditional year-end e-commerce peak season begins, Amazon has already sounded the opening notes of its "Prime Early Access Sale." However, does this prematurely staged promotional feast truly deliver the long-awaited growth sellers hoped for? Or does it risk depleting consumer purchasing power ahead of Black Friday and Cyber Monday? The latest reports from third-party data agencies may reveal some answers.
Mixed Signals From Early Access Data
The data shows that this early shopping event has partially diverted potential demand from Black Friday and Cyber Monday. Specifically, nearly one-third of consumers purchased items they originally planned to buy during the year-end shopping season. The average order value during the event was $46.68, a $13 decrease compared to July's Prime Day, indicating more cautious consumer spending behavior.
While more than half (56%) of household accounts placed more than two orders, the average household spending reached only about $110.45, suggesting restrained overall purchasing enthusiasm.
From a product category perspective, the average price of promotional items was $30.06. Consumers primarily purchased household goods and essentials, followed by health and personal care products, with apparel and footwear ranking third. This data reflects consumers' current focus on practicality and necessities rather than impulse purchases or high-ticket items.
Consumer Behavior: A Wait-and-See Approach
A comprehensive consumer survey revealed that 29% of shoppers purchased year-end holiday gifts during the early sale, which will undoubtedly impact Black Friday and Cyber Monday traffic and order volumes. However, most consumers (69%) reported fulfilling less than half of their anticipated holiday shopping needs, primarily due to expectations of better deals during upcoming promotions.
Meanwhile, 79% of respondents indicated they plan to make additional purchases during Black Friday and Cyber Monday, leaving some room for optimism about the overall performance of the year-end shopping season.
The Rise of Amazon's Private Label Dominance
A notable trend emerged during the event: Amazon's private label products became the preferred choice for many shoppers. The survey shows that nearly half (48%) of early sale shoppers exclusively considered Amazon products, with this proportion reaching 60% for smart home devices. This suggests consumers increasingly favor trusted brands like Amazon's private labels during economic uncertainty, intensifying competition for third-party sellers.
Strategic Shift: Amazon's Internal Ecosystem
Amazon's early sale strategy appears designed primarily as a large-scale promotional event for its private label brands, aiming to reactivate the Prime Day model and create an internal ecosystem of platform traffic and proprietary products. This indicates Amazon is prioritizing its own interests amid tightening economic conditions, granting its private label products greater advantages.
Seller Strategies: Adapting to Market Changes
Facing growing pressure from Amazon's private label products, third-party sellers must proactively adjust strategies to navigate the evolving marketplace. Key recommendations include:
- Differentiation: Avoid direct competition with Amazon's products by offering unique designs, superior customer service, or personalized shopping experiences.
- Operational refinement: Enhance product optimization, advertising strategies, and inventory management to improve efficiency and profitability.
- Channel diversification: Reduce reliance on Amazon by expanding to other sales channels like independent websites or social commerce platforms.
- Consumer focus: Deeply understand customer needs and adapt product and marketing strategies accordingly.
The data from Amazon's Prime Early Access Sale introduces uncertainty about the upcoming holiday shopping season. Third-party sellers must remain vigilant about market trends and adapt quickly to stand out in an increasingly competitive landscape.