Amazon Prime Day 2020 is predicted to rake in a whopping $7.5 billion, potentially having a major impact on other online retailers.
While Amazon does not reveal its Prime Day figures, JP Morgan has predicted that Amazon will once again have its largest event to date, seeing sales rise 42 per cent from the estimated $5.3 billion it made last year.
The 48-event, which will take place over October 13 and 14, will also provide Amazon with a jumpstart to its “peak season” thanks to falling three months later than usual, according to the financial powerhouse.
“The biggest difference this year is that Prime Day is running ~3 months later than its typical mid-July timing, & as such AMZN is promoting the event as an early start to holiday shopping vs. Prime Day’s typical focus on summer & back-to-school shopping,” JP Morgan said in a note to clients.
Amazon’s predicted blowout Prime Day, which will subsequently lead to a bumper Christmas period, will also pose a major threat to other rival online retailers.
JP Morgan analyst Doug Anmuth said in a separate note to clients that Ebay, pet supply retailer Chewy and fashion styling service Stitch Fix were likely to be most impacted by its success.
This is because they sit within the specific categories Amazon tends to promote most aggressively during Prime Day.
Last year Amazon offered a 60 per cent reduction on a first-time pet food subscription, which Chewy was forced to match.
Amazon is already heavily promoting its fashion ranges this year, according to Anmuth, which he believes could have significant impact on Stitch Fix.