Jet.com Launch: The Real Reason Behind Amazon's 'Prime Day'?

Amazon.com, Inc. AMZN concluded its 'Prime Day' this Wednesday and early figures suggest that the company 2 percent to its unit growth that day alone. Gene Munster, analyst at Piper Jaffray, was on CNBC to discuss how the day will impact Amazon's investors and why Amazon launched the sale at this time of the year.

A Material Day

"It might have been a garage sale, but a lot of people showed up," Munster began. "2 percent is a material day. I mean, that actually has something that as an investor you should factor in to how you think about the September quarter. And so, adding 2 percent to unit sales is definitely a win for this Prime Day which for better or worse we will probably see again next year."

Slow Season + Fears Of Jet.com

Munster was asked if Amazon had its Prime Day in July because it's a slower time for sales or there are other reasons behind it. He replied, "Well, it's a little slower time. I think, there's couple of others factors going on is that they don't want to do something like this closer to the holiday because that can kind of draw and pull in some of that sales, so, they can kind of create [something] organic."

He went on, "The other kind of wild card conspiracy theory is that next Monday Jet.com is going to be launched and that's going to be much more competitive with Costco, but also be kind of a $100 a year type of an offering with really low prices."

"Jet was founded by Marc Lore who founded diapers.com which Amazon ultimately acquired. But if you are sitting back and you are thinking as Amazon -- a potential threat -- you kind of want to steal some of the maybe momentum going into Jet. So, I think, this is very strategically placed," Munster concluded.