Amazon.sg is holding its first-ever Prime Day event in Singapore on October 26 and 27, 2020, shortly after the company’s first anniversary in the country on October 8, 2020.
This event is predicted to drive substantial sales for both Amazon and its retail competitors, marking an unofficial start to the holiday shopping period.
The changes in shopping habits this year, with many consumers reducing physical store visits, are anticipated to result in a boost in online revenue. Adobe’s Digital Economy Index (ADI) indicates that the pandemic has led to an additional US$94 billion in online spending from March to July 2020, totaling US$434.5 billion. The ADI suggests that if this trend continues, it could surpass 2019’s online spending.
Sonia Lapinsky, Managing Director at AlixPartners, a consulting firm, noted that employees working remotely have increased freedom to shop online without their bosses noticing, compared to being in an open office setting.
Michael Klein, Adobe’s Global Director of strategy and marketing for retail, travel, and consumer goods, stated that Amazon Prime Day has historically been a significant event for the entire retail sector. Large retailers and smaller businesses alike plan promotions and deals around Prime Day to capitalize on shoppers looking for bargains, and this year is expected to be no different.
Klein also emphasized that the extended shipping times and enticing deals encourage shoppers to begin their holiday shopping earlier.
In 2019, Amazon’s global sales reportedly surged by 71%, reaching US$7.16 billion. Adobe research revealed that during the two-day Prime Day event last year, major retailers (with at least US$1 billion in sales) experienced an average revenue increase of 68%, while small and midsize retailers saw a considerable 28% rise in online sales.
In 2018, during Prime Day, 37% of online shoppers browsed competing retail websites, and 51% of those who explored non-Amazon sites or apps made purchases.
Adobe’s research report, Making the Holidays Happy: Guide to Evolving Marketing Strategies During COVID, discovered that despite the current situation, 78% of consumers intend to maintain or increase their holiday spending, with 39% reporting a rise in their online purchases.
Consumers’ increased time at home exposes them to more online promotions from retailers, who are adapting to this shift by launching promotions earlier. According to Adobe, Prime Day will further accelerate this trend of early holiday promotions and spending.
Check Point also issued a warning regarding Prime Day, cautioning consumers about cybercriminals targeting them during this period. Check Point researchers analyzed cyberthreats associated with Prime Day in the preceding weeks and detected a rise in malicious domains linked to Amazon. Over the last 30 days, there has been a 21% increase in registered domains containing the word “Amazon” compared to the previous month. Check Point discovered that over a quarter (28%) of these domains were malicious, and an additional 10% were suspicious.
Moreover, the number of domains registered with both “Amazon” and “Prime” has doubled in the last 30 days, with 20% classified as malicious.
Omer Dembinsky, Data Threat Researcher at Check Point, issued a warning: “We’re seeing unusually high surges of malicious domains attempting to imitate the e-commerce giant at this time. Before Amazon Prime Day, create a strong password, don’t overshare personal details on your profile, and watch for any misspelling of Amazon.com as you shop from page to page. On Amazon Prime Day, triple-check if you are actually on Amazon.com. The revelation is clear: as consumers gear up for Prime Day, so are hackers. One wrong click can lead to all your personal information getting out there.”
In July 2020, Amazon postponed its annual summer sales event for Prime members, Prime Day, to enhance its logistics operations in anticipation of a surge in online orders and to implement safety measures for its warehouse workers.
Explore:
Read the Adobe blog post on what Prime Day means for retailers.
Read Amazon Singapore’s Country Manager Henry Low’s thoughts on turning one.
Source: Adobe Making the Holidays Happy: Guide to Evolving Marketing Strategies During COVID white paper. Gen Z and Millennial consumers are most likely to have a higher budget in 2020.