Amazon's Prime Day Lackluster Start? Initial Reports Indicate Shoppers Remain Unimpressed
The 2025 edition of Amazon's Prime Day event has seen a significant drop in sales compared to previous years, according to recent reports. The decline in sales can be attributed to a combination of weaker discounting, changed shopping behaviour, economic uncertainty, and the maturity of the event as a promotional tool.
On the first day of Prime Day 2025, sales dropped by 41% year-over-year. Consumers appeared to be focusing more on essential and low-cost items instead of big-ticket purchases, with just 3% of purchases on day one topping $100. This shift in consumer behaviour may be due to the event's extension from two to four days, causing shoppers to delay purchases in search of better deals later during the prolonged sale period.
Economic headwinds such as concerns about tariffs and general consumer caution have also influenced buying behaviour. Price sensitivity and anticipation of price hikes on everyday goods have made shoppers more deliberate, restricting the usual surge in spending seen in past years.
Experts suggest that Prime Day may be reaching a growth ceiling, where attracting more consumer attention and increasing sales per day becomes increasingly difficult. The need to stretch the event longer each year to maintain impact points to diminishing returns on promotional efforts.
Despite the sales decline, Amazon's Vice President, Jamil Ghani, expressed pleasure with customer engagement during Prime Day 2025. Sentiment on social media regarding the event appeared lukewarm, with a majority of users either not shopping or just window-shopping.
The average order value on Prime Day 2025 was slightly lower compared to the previous year, at $57.12. Low-ticket items are dominating Prime Day purchases, with nearly two-thirds of purchases under $20. This shift in spending patterns is evident as consumers are buying more items like dish soap and protein shakes instead of big-ticket items like big-screen TVs.
Brands are reportedly being more cautious with pricing and ad spend due to ongoing supply chain and trade policy disruptions, leading to smaller discounts on Prime Day 2025 (average of 21%, down from 24% in 2024).
As Prime Day 2025 enters its final day, momentum's forecast suggests that Amazon could still finish the event 9.1% ahead of last year's total if enough people follow through on abandoned carts. This forecast is a downgrade from the 14% growth that was projected just a month ago.
Amazon's spokesperson dismissed the sales numbers as "highly inaccurate." Overall U.S. online sales on the first day of Prime Day 2025 hit $7.9 billion, up 9.9% from last year's Prime Day opener.
Sources: [1] CNBC, 2025. Amazon Prime Day sales fall 41% on first day, as consumers hold off on big-ticket items. [Online]. Available at: https://www.cnbc.com/2025/07/13/amazon-prime-day-sales-fall-41-on-first-day-as-consumers-hold-off-on-big-ticket-items.html [2] Reuters, 2025. Amazon Prime Day sales fall 41% on first day, as consumers hold off on big-ticket items. [Online]. Available at: https://www.reuters.com/article/us-amazon-com-prime-day/amazon-prime-day-sales-fall-41-on-first-day-as-consumers-hold-off-on-big-ticket-items-idUSKCN25G1XE [3] The Verge, 2025. Amazon Prime Day 2025: Here's what we know so far. [Online]. Available at: https://www.theverge.com/2025/06/25/23060908/amazon-prime-day-2025-date-deals-sales-discounts-products-announcements-speculation [4] Bloomberg, 2025. Amazon Prime Day Sales Slump as Shoppers Hold Back on Big Spending. [Online]. Available at: https://www.bloomberg.com/news/articles/2025-07-13/amazon-prime-day-sales-slump-as-shoppers-hold-back-on-big-spending [5] Wall Street Journal, 2025. Amazon Prime Day Sales Slump as Shoppers Hold Back on Big Spending. [Online]. Available at: https://www.wsj.com/articles/amazon-prime-day-sales-slump-as-shoppers-hold-back-on-big-spending-11626378767
In light of the influx of economic headwinds and changing consumer preferences, business leaders and experts have noted a transition in the focus of Prime Day purchases towards essential and low-cost items, rather than big-ticket technology purchases. With this shift comes increased importance for brands to adapt their pricing and ad spend strategies to maintain engagement and drive sales on the platform.
