Market Overview

Prime Day: Amazon's Ploy To Get More Users Before Shopping Season

Prime Day: Amazon's Ploy To Get More Users Before Shopping Season, Inc. (NASDAQ: AMZN) recently announced that to celebrate its 20th anniversary on July 15, it will organize a shopping event titled "Prime Day" on its platform exclusively for Amazon Prime customers.

Tom's Guide editor-in-chief, Mark Spoonauer, was on CNBC Monday to discuss about this event.

Winning New Customers

"I think it can be bigger than Black Friday in terms of the sheer number of deals they are going to be offering that day," Spoonauer said. "And it's designed basically to win over new customers, not just award existing customers.

"There is an estimated 50 million Amazon Prime numbers, and you get everything from free two-day shipping to free movies and apps and games, as well as unlimited cloud storage. But they need to grow that pie – especially heading into the critical Q4 shopping season. So, this fake holiday is to really get more people signed up for the service."

Related Link: Step Aside Black Friday – Meet Prime Day

Could Be As Big As Cyber Monday Or Singles Day

Spoonauer was asked if Amazon's Prime Day can beat Cyber Monday or Alibaba Group Holding Ltd (NYSE: BABA)'s Singles Day. He replied, "I think over time it has that potential. But the reason why they are doing this is they want more people to be aware of the service, and it's really amazing how much people spend who are Prime members versus those who are not.

"Based on some estimates, it's about $1,600 or about $1,500 a month versus at about $600 for those who are non-members. So, more than double for prime members in terms of the monthly spending.

"So, the more people they sign up, the more money that they are going to generate not just on this day, but throughout the year," Spoonauer concluded.

Image Credit: Public Domain


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Posted-In: Black Friday CNBC Cyber Monday Mark Spoonauer Singles DayAnalyst Color Tech Media

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