Amazon.com Inc.'s Prime Day sales on Tuesday in the U.S. appeared to be unchanged from a year ago, indicating some early snags that prevented shoppers from adding items to their carts could dampen results for the company's second annual promotion.
ChannelAdvisor Corp., a North Carolina firm that helps 3,000 merchants sell on online marketplaces such as Amazon, said that as of noon New York time Tuesday, its customers were experiencing similar U.S. sales to the first Prime Day last July. Amazon's shares fell as much as 1.8 percent after ChannelAdvisor's report.
The lack of growth so far may be the result of Amazon staggering its deals throughout the day to better manage inventory, and the day could still finish with more sales than last year, said Scot Wingo, chairman of ChannelAdvisor. Third-party sales in the U.K. gained 11 percent from a year earlier, he said.
"The jury is still out," Wingo said. "The U.K. does give us an indication sales will be greater than last year."
Amazon created Prime Day last year, offering exclusive deals to lure shoppers to Amazon Prime memberships, which cost $99 a year and include free two-day shipping on many items. Many shoppers were disappointed that inventory ran out quickly and the company offered deals on obscure items such as shoe horns and food containers. But analysts credited the event with improving sales and building a strong foundation for the 2015 Christmas shopping season.
Amazon sought to redeem itself this year by offering more deals and deeper inventory. But many shoppers reported difficulty buying things from the website. Amazon confirmed the problem before 9 a.m. New York time, six hours after its 3 a.m. kickoff.
Shoppers vented their frustration on social media using the hashtag, #PrimeDayFail, with many saying they couldn't add items to their digital baskets.
Amazon had 63 million Prime subscribers as of June 30, an increase of 43 percent from a year earlier, according to Consumer Intelligence Research Partners in Chicago. Prime subscribers spend about $1,200 annually on Amazon.com, compared to $500 for nonsubscribers, according to the firm. The company offers a free 30-day Prime trial for nonmembers.
Business on 07/13/2016