The Amazon Prime Day event, referred to as 'summer's Black Friday,' has encountered sluggish sales since its first day. Analysts suggest this is a signal of growing concerns about the U.S. consumer economy.

Bloomberg reported on the 9th (local time) that on the first day of Amazon Prime Day, July 8, Amazon's sales plummeted by 41% compared to the same day last year, citing statistics from branding consulting firm Momentum Commerce.

The company handles online sales for 50 corporations, including the popular shoe brand Crocs, headphone brand Beats, and massage gun brand Therabody. The annual sales managed by corporations on Amazon amount to approximately $7 billion (about 9.6 trillion won), making it a reliable source of data in the online shopping industry.

An Amazon delivery worker checks packages in New York City. /Courtesy of Yonhap News

This year's Prime Day saw not only a decline in overall sales but also a deterioration in the 'quality of consumption.' Market research firm Numerator evaluated that this year revealed a clear trend of frugal spending during Prime Day.

Among the products sold on the first day of Prime Day this year, two-thirds were priced below $20 (about 27,000 won). Only 3% were priced over $100.

Instead of relatively high-priced items like TVs or gaming consoles, essential goods such as dish soap and protein shakes topped the list of best-selling items this year. According to Numerator, the average expenditure per household decreased from $110 last year to $106, and the average purchase amount per item dropped from $28 to $25.46.

Amazon employees load packages onto carts before delivering Prime Day event items. /Courtesy of Yonhap News

Bloomberg assessed that uncertainty stemming from changes in tariff policy and ongoing inflationary pressure has increased consumer anxiety.

Not only consumers but also sellers are facing complexities. Amazon is the largest online shopping mall in the U.S., with high popularity and substantial demand for low-priced goods from ordinary consumers. Numerous sellers on Amazon target this demand by importing affordable products in bulk from places like China.

However, since the new tariff agreement, the price burden on imported goods from China has increased, making it difficult for these sellers to supply goods as cheaply as before. Ultimately, some sellers, unable to absorb the increased expense, have either been passive in participating in Prime Day discounts or opted not to participate at all, Bloomberg reported.

There were evaluations among consumers that 'there is nothing to eat at a rumored feast.' Amazon doubled the length of its event this year from two days to four as a strategy to overcome tariff concerns.

However, the extended duration of the event turned out to be detrimental. Amid a recession in consumer spending, as the event got longer, consumers exhibited a tendency to delay purchases, thinking 'better deals might come towards the end of the event.' John Shea, CEO of Momentum Commerce, analyzed that 'during the previously brief sale periods, consumers felt a sense of urgency not to miss out, but that effect has now faded.'

Consumers enter a Whole Foods store in San Rafael, California, on June 11, 2025. /Courtesy of Yonhap News

Amazon immediately pushed back. Amazon spokesperson Jessica Martin countered, calling the claims 'unsubstantiated assertions from a consulting firm that lacks access to actual sales data,' arguing that the figures were 'highly inaccurate.' However, Amazon raised controversy by not presenting actual data to refute this.

Prime Day was first held in 2015 to secure paying members. This event, which has now surpassed its 10th anniversary, has become a summer economic barometer that draws large retailers like Walmart and Target into competing discount events during the same period.

Consumption accounts for about 70% of the U.S. gross domestic product (GDP). The spending habits of Americans reflect the strength of the U.S. economy, which is directly linked to the global economy. If U.S. consumption slows, countries reliant on exports, including Korea, will also experience declines in exports to the U.S. This is why the world is paying attention to the Prime Day results.

There are also cautious opinions that it is too early to jump to conclusions. Some have expressed hope that, given the extension of the event to four days, the remaining period could see a rebound in sales.

Amanda Schoenbauer, a researcher at Numerator, stated, 'Although the expense of each consumer has decreased, there is still capacity to break last year's records if the overall sales increase.'

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