On October 10th, he asked me what day it was…. “It’s Amazon’s Big Deals Day,” I said.
As the excitement builds for Amazon's upcoming Big Deals Day on October 10th and 11th, it's the perfect moment to reflect on the journey of Prime Day—once a celebration of Amazon's anniversary, now a monumental retail event held each year.
Let’s look into the history of Prime Day, its transformative influence on small and medium-sized businesses, online shopping, and delivery networks.
When was the first Amazon Prime day?
Let's step back to the origins of Prime Day. In 2015, Amazon declared July 15th a retail holiday, celebrating its 20th anniversary with a groundbreaking 24-hour sale that boasted deals even greater than Black Friday.
The success was nothing short of extraordinary, with lightning-fast deals seeing more than 34.4 million items ordered—that’s 398 items per second!
Why did Amazon create Big Deals Day?
Following the success of its 8 year Prime Day tradition, Amazon established “Big Deals Day.”
The e-commerce giant created Big Deals Day for three reasons:
- Encourage Prime memberships: Similar to Prime Day, Amazon Big Deals Day will be exclusive to Prime members. The sale will also create a sense of urgency, only operating during a 48-hour window, with new deals dropping every 5 minutes. In addition to this, Amazon Prime members will have the chance to sign up for invite-only doorbuster deals up to 60% off.
- Holiday shopping in advance: In 2022, 67% of consumers revealed that they planned to do their holiday shopping on Amazon. Hosting an earlier sale prior to Black Friday can alleviate the strain on Amazon’s facilities and drivers as they work tirelessly to meet the holiday demand.
- Capitalizing on Prime Day’s success: Originating as an anniversary celebration, Prime Day has evolved into a full-fledged holiday. Given its consistent record-breaking profits each year, it's a logical move for Amazon to prolong Prime Day, capitalizing on the event's success to fuel heightened consumer demand and leverage its success.
Prime Day’s impact on small and medium businesses
While Amazon has rightfully earned its reputation as an e-commerce giant, it's important to note that the platform also plays host to a diverse array of small and medium-sized businesses, contributing to its vibrant marketplace.
Here are some stats over the years that showcase Prime Day’s impact on small businesses:
- 2016: In its second year alone, Prime Day proved instrumental in helping small businesses and sellers on Amazon. By extending exclusive deals to Prime members, these businesses experienced a remarkable threefold increase in their year-over-year orders.
- 2018: Small and medium-sized businesses selling on Amazon exceeded $1.5 billion in sales.
- 2020: Small and medium-sized businesses achieved an impressive milestone, surpassing $3.5 billion in sales. This marked a substantial nearly 60% growth compared to Prime Day 2019, outpacing the expansion of Amazon's own retail business.
- 2021: In the lead-up to Prime Day 2021, small businesses thrived with Amazon's "Spend $10, Get $10" promo, driving over $1.9 billion in sales on 70 million products.
- 2022: In the three weeks leading up to Prime Day, customers rallied behind small businesses, generating over $3 billion in sales through the Support Small Businesses to Win Big sweepstakes and purchasing over 100 million small business items.
In 2023, Amazon achieved an unprecedented feat, delivering 375 million items from Prime Day, a testament to their robust delivery network. Prime members, accustomed to same-day and two-day delivery perks, have become beneficiaries of Amazon's strategic approach—delivering a staggering 10 million packages a day in 2022. Fast delivery is dubbed as the “cornerstone” of Prime’s success, and we’re getting to the bottom of how Amazon maintains its reputation of lightning delivery.
Here’s what the company attributes its success to:
- Regionalized network: The country is segmented into eight interconnected regions, designed to fulfill customer orders within their respective regions, ensuring faster and more cost-effective delivery.
- AI algorithm utilization: Amazon employs AI algorithms to predict customer preferences, strategically placing products in regional facilities based on anticipated demand, optimizing efficiency.
- Same-day facilities: In addition to regional centers, Amazon operates Same-Day facilities, strategically stocking items for immediate orders, placing products within easy reach of customers.
- Expansive driver network: Amazon is expanding its driver network to enhance delivery capabilities. This includes the introduction of Amazon Flex—an independent contracting opportunity for those looking to leverage their own resources for additional income.
All these things combined make it possible for Amazon to quickly deliver your Prime Day Deals!
What will you be purchasing on Big Deals Day?
As we eagerly await the buzz and excitement of Big Deals Day on October 10th and 11th, it's evident that Amazon's commitment to redefining the shopping experience knows no bounds. Be sure to mark your calendars for some Big Day Deals soon! What’s on your Amazon wishlist?