Retail

Amazon Prime Day Sees Small, Mid-Sized Businesses Rake In $3.5B

Third-party sellers generated billions in sales during Prime Day on Amazon’s online marketplace, as eCommerce activity surges in the wake of the coronavirus pandemic, the tech giant reported.

The small and mid-sized businesses that sell on its marketplace saw their sales jump 60 percent over Prime Day last year, surpassing the $3.5 billion mark, Amazon said. That’s up from the more than $2 billion in sales notched by third-party sellers on Amazon’s marketplace last year.

Many of the sales came from items such as wireless accessories, nutritional and wellness products, bedding, and arts and crafts.

Amazon had originally planned to hold Prime Day, a major revenue-maker for the company, in July, but was forced by COVID-19 to push it off until October.

While Amazon has not disclosed total revenue from this year’s Prime Day, analysts have offered ranges from $7 billion to $10 billion, according to CNBC.

The big jump in Prime Day sales is also expected to contribute to what analysts predict will be a record-shattering fourth quarter for Amazon, with projections on Wall Street that the world’s largest retailer will surpass $100 billion in revenue for the first time.

Tabulating results from sales around the world, the top-selling products this year included “Echo Dot, Fire TV Stick 4K with Alexa Voice Remote, iRobot Roomba Robot Vacuum, LifeStraw Personal Water Filter and Lego Star Wars Stormtrooper Helmet, among others,” Amazon said.

Amazon said the sale was held in 19 countries, including the United States, with Prime members netting $1.4 billion in discounts.

“We are thrilled that Prime Day was a record-breaking event for small and medium businesses worldwide, with sales surpassing $3.5 billion — an increase of nearly 60 percent from last year,” said Jeff Wilke, CEO of worldwide consumer for Amazon, in a press release. “I’m incredibly thankful to our employees and partners around the world who helped make Prime Day possible.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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