Amazon contests the accuracy of the report

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Amazon Prime Day 2025 sales dropped 41% on the first day compared to 2024, according to Momentum Commerce.
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Amazon disputes these figures, citing increased engagement and a broader sales window.
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Analysts attribute the decline to economic uncertainty, extended sale duration, and increased competition.
Economists pay close attention to consumer spending when they assess the health of the U.S. economy. Amazons Prime Day event may be drawing their attention this week.
The annual July sales promotion, which began Tuesday, was originally scheduled for two days. Early in the event, Amazon extended it an additional two days. The extension coincided with a reported drop in sales numbers.
Data from Momentum Commerce indicates a 41% decrease in first-day sales compared to the previous year, raising questions about shifting consumer behaviors and market dynamics.
Amazon challenges the report
In response to the reported figures, Amazon has contested the accuracy of third-party data. The company said there has been increased customer engagement and notes that the extended sale duration may be influencing purchasing patterns. In other words, consumers may be simply delaying their purchases.
Amazon also points to a surge in interest for deals offering 50% off or more, suggesting that consumers are strategically timing their purchases throughout the event.
Factors Influencing Consumer Spending
Several elements may be contributing to the observed sales decline:
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Extended Sale Duration: The shift from a two-day to a four-day event may lead consumers to delay purchases, anticipating better deals later in the sale period.
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Economic Uncertainty: Ongoing concerns about inflation and potential trade tariffs are causing consumers to be more cautious with their spending.
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Increased Competition: Retailers like Walmart and Target are running concurrent sales events, offering consumers alternative shopping options.
The reported initial sales dip had a tangible impact on Amazon's stock, which fell by up to 2% following the early reports. However, projections from Adobe Analytics remain optimistic, forecasting that total online spending during the four-day Prime Day event could reach $23.8 billion, marking a 28.4% increase from 2024.
As Prime Day concludes, industry observers will closely monitor whether consumer spending rebounds in the latter half of the event. The outcome may provide valuable insights into evolving shopping behaviors and the effectiveness of extended promotional strategies in the current economic climate.
Posted: 2025-07-11 12:39:07