Inflation-weary Amazon shoppers stock up on essentials during Prime Day

Instant Pots and Roombas are usually top sellers AmazonPrime Day event. But this year, consumers were more interested in dishwashing pods, diapers and snacks.

Let’s see some Most popular products During Amazon’s two-day discount event, which closed late Wednesday, offers a window into how high inflation is changing consumer spending habits.

The Consumer Price Index is a broad measure of the prices of goods and services, Up 9.1% in June, a 41-year high. Amid rising prices, consumers have tightened their wallets Reducing discretionary spending.

Inflation could dampen consumers’ willingness to splurge on a new TV or Echo smart speaker during Prime Day, analysts warned.

JPMorgan wrote in a note to clients on Monday that they forecast “slow growth in first-day earnings, compounded by a challenging macro backdrop.” The company’s analysts forecast total Prime Day revenue of $5.6 billion, up just 5% from the previous year, compared to 50% annual growth in 2020 and 9% annual growth in 2021.

So far, Prime Day results are better than feared. Company said It sold 300 million items during Prime Day on Thursday, up from 250 million the year before, making it the “biggest” in Amazon’s history.

Total online retail sales in the U.S. exceeded $11.9 billion during Amazon’s Prime Day event. According to Adobe Analytics data, this is 8.5% more than the overall e-commerce transactions generated during last year’s event. Other retailers like Best buy And target They tried to capitalize on the Prime Day frenzy by launching their own competitive events.

Although inflation does not affect sales, it may affect the goods purchased by consumers. Reaching home products like Amazon Basics trash bags and Cascade dishwasher pods, Melissa Burdick, president of Pacvue, which helps companies advertise on Amazon and other e-commerce platforms, said shoppers chose utility over pleasure.

“Sales are still strong, but the mix of category change is relative to inflation, particularly around food,” Burdick said. “If they could figure out how to give gas, it would have been the best Prime Day ever.”

Rising prices in grocery stores have worried many people across the country. 90% of Americans are worried About food prices according to the latest Harris Poll in association with Alfa Foods.

Frito-Lay snack packs were the best sellers during Prime Day, according to Numerator, which tracks Prime Day spending. But Prime Day shoppers aren’t just stocking up on essentials. Amazon-branded devices continued to top the list of hot items during the event, Numerator found. Amazon is heavily discounting its Echo smart speakers and Fire TV Stick on Prime Day.

Consumers also shunned big-ticket items for smaller purchases. Roughly 58% of Prime Day items sold for under $20, while just 5% sold for more than $100, according to Numerator. About 34% of shoppers surveyed said they waited until Prime Day to buy something at a discounted price, while 28% said they passed on a good deal because they didn’t consider it necessary.

Prime Day and other discount events that accompany it are a good “litmus test” for consumer confidence. Amid fears of a recessionsaid Daniel Newman, principal investigator at Futurum Research.

“It seems to me that most people still have good balances at home and on a day like Prime Day they’re excited to go out and buy some stuff,” Newman said.

Many consumers feel it makes more sense to buy “15 types of Kind Bars and three new Echos” when they’re offered at a discount instead of waiting, he added.

“Am I going to spend $300 today or $500 tomorrow?” Newman said. “I think a lot of people rationalize that way. If we’re going to buy these things in the next few months anyway, I might as well do it now.”

See: Former Walmart US CEO Says It’s Do-or-Die for Amazon This Prime Day

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