Is this what people mean by ‘Christmas in July’?
It may be about five months early, but Amazon’s four-day Prime Day sales event has turned mid-summer into a shopping blitz that feels, for about 96 hours, like peak December. Even against the backdrop of plummeting consumer confidence, U.S. shoppers spent $24.1 billion across all U.S. online retailers during Amazon’s four-day sales holiday (+28.4% over last year’s two-day event), more than double the amount they dropped online during last year’s Black Friday ($10.8 billion). Though Amazon hasn’t released its own exact sales figures, we’re guessing they did OK.
But the numbers themselves don’t tell the whole story; it’s not just what consumers are buying, but how they’re buying it.
Protein, Hydration In Demand
Need any more convincing about the current power of protein? Look no further than the Prime Day sales charts (courtesy of Numerator), where BellRing Brands’ Premier Protein RTD shakes took the top spot.
What the data doesn’t tell us is the actual dollar-per-gram breakdown of each shake; Premier’s classic line comes in at 30 grams per 11 oz. serving, while the brand also offers 20 gram and 22 gram versions (the recently launched Indulgence) through its sublines. The line’s performance suggests that its brand equity and category share is keeping protein-hungry consumers within its ecosystem, even as other RTD competitors (Slate, Quest) blow past the 30 gram threshold. It’s a welcome continuation of sales trends highlighted in BellRing Brands’ most recent earnings report, in which it cited new highs in household penetration, market share and total points of distribution at retail for the RTD shakes.
Could we say the same for Liquid I.V., ranked as the fourth best-selling item on Prime Day? Potentially, though electrolyte content and hydration are likely less impactful on-pack callouts as compared to grams of protein. In this case, it’s likely the result of its dominant market position: at $905-plus million in sales (52-weeks ended May 12, per Circana) — up 28% year-over-year — Liquid IV, as some have noted, isn’t too far off the likes of Gatorade and BodyArmor. At 60% category share, the Unilever-owned company has been using ecomm to chase international expansion in countries like India.
Promos Push Grocery Sales
Though on the surface it’s just a big sale, Amazon’s Prime Day is actually something closer to a membership drive. Along with its bundled music, streaming video and other services, access to Prime Day’s special grocery deals via Amazon Fresh and Whole Foods is another way to entice consumers to spend the $139 per year to join. This year’s promotions included a 50% discount on all ice cream and frozen desserts at Whole Foods and $30 off purchases of at least $150 or more on Amazon Fresh, which offers same-day or next-day grocery delivery.
The division has struggled to turn profitable amidst turnover and downsizing in recent years, but Prime Day is one of its busiest periods; as in past years, Amazon Fresh corporate employees were invited to “volunteer” to assist warehouse teams with fulfillment during the sales event.
Savvy shoppers will tell you to wait for a holiday sale (like Prime Day) to get the best price for a big purchase like appliances or electronics, but Amazon’s discount event was mainly about stocking up on smaller-ticket items; 67% of items sold were under $20, and only 3% were over $100, according to data from Numerator.
And though more than 50% of shoppers purchased something they had been waiting to buy until it went on sale, it probably didn’t come from their grocery list. Groceries represented less than half (14%) of the sales of Prime Day’s best-selling category, apparel and shoes (30%).
AI, Influencers At the Wheel
Beyond the numbers, Prime Day also revealed how consumer behavior is evolving online.
The value of social media influencers shone through on Prime Day, as the group was credited for driving 19.9% of U.S. online retail sales during the four days, a year-over-year jump of 15%; the data indicated that influencers were 10 times more effective in converting shoppers into making purchases, per Adobe. That doesn’t necessarily mean Gen Z is shopping more, though; groceries, they were the least represented demographic at 14% in 2024.
But Prime Day also reflects how AI is threatening (or promising) further disruption in ecommerce, as generative AI-driven traffic to U.S. retail sites increased by 3,300% year-over-year during Prime Day. Though that segment is still dwarfed by email and paid search, it should be encouraging to Amazon, particularly as it rolls out its next iteration of voice assistant Alexa, powered by GenAI.