According to Adobe Analytics, Amazon's Prime Day will likely create an e-commerce halo effect for large rival retailers and big gains on email marketing.
With Amazon Prime Day approaching, Adobe surveyed 1,000 US consumers between June 2 and June 6. It complemented it with its Adobe Digital Economy Index, which is based on more than one trillion visits to US retail sites and more than 100 million SKUs.
Adobe's data on e-commerce is interesting given the timing of Amazon's Prime Day. In 2020, Amazon moved Prime Day to October, and it essentially kicked off a long holiday shopping season. In 2021, Amazon moved Prime Day back to the summer (and into the second quarter on June 21-22), but before the July 15, 2019 date.
Meanwhile, Amazon's Prime Day lands as the economy is reopening and outdoor activities, travel and brick-and-mortar regain wallet share. For instance, Adobe said US e-commerce spending reached $73.5 billion in May, down 11% from a year ago. However, two-year growth for May is up 58%, just below March and April growth, which was fueled by stimulus checks.
A Jefferies survey found that spending has likely shifted online permanently. Based on a survey of 700 US adults, Jefferies found that 60% are spending more online since theCOVID-19 pandemic began. Among those spending more, 63% have continued to spend more online even as restrictions have lifted. Only 15% are spending less online. Amazon is getting the bulk of that spending, followed by Walmart, Target and Chewy.
Consumers cut their retail spending in May as the US Census Bureau reported that monthly retail and food services sales fell 1.3% from April. Compared to a year ago, retail sales were up 28.1% in May.
Another takeaway is that email marketing delivers on Prime Day with flat to down performance from other channels like search and social networking.
Here are some key Adobe data points for Amazon Prime Day 2021:
58% of consumers say they plan to shop online during Prime Day.
Large retailers are most successful at capitalizing on Prime day with competing sales. Large retailers saw a 10% higher lift during the last Prime Day compared to smaller retailers.
47% of consumers expect other retailers to offer deals due to Prime Day.
34% of consumers say they prefer to buy from small businesses during Prime Day.
Retailers with buy online and pick up in-store saw a lift conversion twice as big as rivals without it.
Discounting is better during Cyber Weekend over Prime Day, but toys and electronics show steep discounts on Prime Day.