Tuesday 12 July 2016

Second annual Amazon Prime Day

Today is the second annual Amazon Prime Day, a day when the pioneering online retailer offers special price promotions for current Prime members and to attract new members. The first Prime day in 2015 created a lot of publicity for Amazon and resulted in a huge number of purchase transactions. In fact, Prime Day exceeded Black Friday's usual results.

The idea is to encourage shopping during the summertime, and make members feel like insiders when they get special deals that aren't available to everyone. Of course, since Amazon allows shoppers to sign up for a free 30-day Prime membership trial, everyone can, in effect, try and buy. So another objective is to attract new Prime members and convince them that the expedited shipping and access to streaming entertainment are worth the price of membership.

Amazon is promoting its Dash buttons at a discount, because once consumers install them, they simply press and presto! Replacement products for frequently-purchased items like laundry detergent will arrive quickly and automatically. Shoppers who grow accustomed to such convenience will be unlikely to switch to other retailers.

This year, as in 2015, the most coveted products being discounted are electronics, which lead the way in promotions. Amazon also encourages its sellers to get in on the promotion by offering deals to their customers via the retailer's website.

Will the number of transactions on 2016 Prime Day surpass the 2015 record?