Amazon Prime Day: 3 Ways Inflation and a Bear Market Could Impact Customer Savings in 2022
The last time Amazon Prime Day took place during an economy of 8% inflation was, well, never. Inflation hasn’t been this high since 1981, when “Amazon” meant a river in South America and Jeff Bezos was still in high school.
This is all new terrain for Amazon the company, having to navigate its way through the combination of 8%-plus inflation and a bear market. It comes just as the online retailer is gearing up for its annual Amazon Prime Day, scheduled for July 12-13, 2022.
With ongoing supply chain issues, as well, this year’s Prime Day could mean big changes for consumers and businesses alike. For sellers, it might mean offering even bigger deals, discounts and promotions to attract weary consumers — something that could save Prime members a lot of money.
The JungleScout website, a platform for Amazon sellers and buyers, offers the following three reasons Prime Day 2022 will be different.
1. Consumers Are Spending Less
A recent JungleScout survey of 950 U.S. consumers found that 38% of respondents are reducing their overall spending in 2022, with nearly three-quarters (72%) citing rising inflation as the reason. Seven out of 10 consumers are making fewer impulse purchases this year, while 52% of consumers are saving up for a big purchase such as a new home or a vacation.
2. Customers Will Be Eyeing Big Savings
Many Americans have taken a major financial hit over the past couple of years, first because of the COVID-19 pandemic and then surging consumer prices. This could make Prime Day deals even more attractive than they’ve been in the past. According to the survey, 53% of consumers are compelled to purchase a product when they get a deal, coupon or discount code. Nearly half (47%) said they will only purchase products that are on sale or discounted, and the same percentage said they will only purchase from their favorite brands.
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3. Home and Self-Care Products Could be Big Sellers
According to the JungleScout survey, two categories consumers are not cutting back on are home improvement and self-care. Half of respondents said they are willing to spend more money on their homes now than before 2020. About six in 10 (62%) have put a focus on self-care and wellness products, with a similar percentage exhibiting a greater interest in cooking at home vs. eating at a restaurant. Another 45% have a greater interest in interior design and home decor than they did in years past.
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