Amazon Prime Day: Logistics Drive Retailer's Competitive Edge

Amazon Prime Day is about price due to its logistics, according to John Shea, head of commerce at digital ad agency PMG. Shea notes that Amazon's strong logistics allow it to stand out among competitors as Prime Day enters its fourth and final day.

Amazon Prime Day, the annual shopping event for Amazon Prime members, is entering its fourth and final day. The event, which began on July 8 and runs through July 11, has been extended to 96 hours this year, doubling the duration from previous years. This extended period allows Amazon to capitalize on consumer behavior and logistics efficiency.

According to John Shea, head of commerce at digital ad agency PMG, Amazon's strong logistics capabilities are a key factor in its ability to maintain competitive pricing during Prime Day. Shea notes that Amazon's robust supply chain and distribution network enable it to offer lower prices and a wider range of deals compared to its competitors [1].

The first day of Prime Day saw a 41% decrease in sales compared to last year, according to Momentum Commerce. However, this slow start may be attributed to consumers adopting a "wait and see" mentality due to the extended event window [1]. Momentum Commerce predicts a 9.1% overall growth in sales from last year, down from its earlier projection of 14% growth [1].

Adobe Analytics forecasts that Amazon customers will spend $23.8 billion during the four-day event, a significant increase from the $14.2 billion spent during the two-day event last year. The largest spending increases are expected in categories such as school supplies, electronics, and sporting goods [2].

The extended Prime Day event coincides with increased competition from other retailers, including Walmart, Wayfair, and Target, who have also launched their own promotions during the same period. Despite this competition, Amazon's strategic use of logistics and price points is likely to drive significant sales and consumer engagement [2].

In conclusion, Amazon Prime Day 2025 is poised to be a pivotal event for e-commerce, driven by the company's logistics prowess and strategic pricing. The extended event window and strong consumer engagement are expected to contribute to significant sales growth, despite initial slow sales on the first day.

References:
[1] https://www.forbes.com/sites/zacharyfolk/2025/07/09/amazons-day-1-prime-day-sales-dropped-41-report-finds/
[2] https://economictimes.indiatimes.com/news/international/us/amazon-prime-day-sale-2025-deals-in-usa-dates-discounts/articleshow/122303291.cms