Amazon’s Prime Day can benefit rival retailers
July 6, 2016 04:05 PM
Amazon.com Inc.’s success in boosting its online business with its Prime Day promotion during a traditionally slow period appears to be rubbing off on the rest of the online retail industry. Amazon is stepping up its promotion for this year’s Prime Day promotion, scheduled for next Tuesday, hoping to outperform the results of its first Prime Day event held last July. Other e-retailers have reason to hope it succeeds.
A new report from digital analytics firm SimilarWeb, titled “America’s Online Shopping Frenzy,” shows that the inaugural Prime Day, held last July to celebrate Amazon’s 20th anniversary, triggered an avalanche of e-retailing activity that benefited the entire e-commerce industry and created the fourth-busiest online shopping day of the year from a traffic perspective. SimilarWeb analyzed traffic to 25 of the largest online retailers in the U.S., including the likes of Wal-Mart Stores Inc., No. 4 in the Internet Retailer 2016 Top 500 Guide, Macy’s Inc. (No. 6), Best Buy Co. Inc. (No. 12) and Newegg Inc. (No. 17).
SimilarWeb’s data revealed that these top 25 online retailers in the U.S. recorded 179 million visits between desktop and mobile devices during last year’s Prime Day, a huge increase from their daily averages. Here’s how that compares to what the traffic these web merchants received on the other major online shopping days:
- Black Friday (Nov. 27): 274 million visits
- Cyber Monday (Nov. 30): 261 million visits
- Thanksgiving (Nov. 26): 243 million visits
- Prime Day (July 15): 179 million visits
Amazon, No. 1 in the Top 500, said it generated more sales during Prime Day last year than it did the previous year’s Black Friday. The retailer’s promotion, however, may have had the unintended consequence of driving more traffic to competitors’ sites.
SimilarWeb’s data shows that Amazon’s web traffic jumped 44.9% on last year’s Prime Day from the previous day’s figure, but that was only the third-largest traffic increase recorded that day among the 25 e-retailers in the study. Wal-Mart, which ran a competing promotion during last year’s Prime Day event, recorded at 61.9% traffic boost that day and Macy’s was close behind with a 58.4% traffic spike.
On mobile devices, Macy’s dominated from a traffic perspective during year’s Prime Day, recording a 81.4% traffic spike, while Amazon had a 62.6% increase in mobile traffic and Wal-Mart had a 46.1% increase.