Amazon and Walmart's Prime Day discount week faces uncertainty due to Trump's tariffs

Amazon and Walmart's annual discount events start today amidst uncertainty caused by Trump's trade wars, which have scrambled consumer behavior. Some merchants are sitting out Amazon's Prime Day, while Walmart may see an opportunity to gain share in its e-commerce push. Shoppers are unsure whether to buy pre-tariffed goods or delay discretionary purchases due to economic concerns.

Amazon and Walmart's annual discount events commence today, July 8, amidst uncertainty caused by the ongoing trade wars initiated by former U.S. President Trump. The economic climate has significantly impacted consumer behavior, with some merchants opting out of Amazon's Prime Day and Walmart positioning itself to gain market share in e-commerce.

Amazon Prime Day: A Record-Breaking Event

Adobe forecasts that Amazon Prime Day sales will reach an impressive $23.8 billion, a 28.4% increase year-over-year [1]. This four-day shopping event, running from July 8 to 11, is expected to generate sales almost equivalent to two Black Friday events. Adobe attributes this growth to a 28.4% increase in online shopping, driven largely by mobile purchases, which are projected to account for 52.5% of total sales [1].

Impact of Tariffs on Consumer Behavior

Economic uncertainty, particularly the impact of tariffs, is influencing shoppers' purchase plans. A survey conducted by Smarty, an online shopping rewards app, found that 32% of shoppers are being more selective about their purchases due to budget constraints, while 25% are planning to buy more items to avoid anticipated future price increases [2]. Another 23% are focusing on categories likely to be affected by tariffs.

Walmart's Opportunity Amidst Economic Uncertainty

Walmart, seeing an opportunity to capitalize on the economic uncertainty, is positioning itself to gain market share in the e-commerce sector. The retailer is offering competitive discounts and promotions, aiming to attract shoppers who may be hesitant to participate in Amazon's Prime Day due to economic concerns.

Conclusion

The ongoing trade wars have created a challenging environment for retailers and consumers alike. Amazon's Prime Day and Walmart's annual discount events are set to be significant indicators of consumer behavior in this uncertain economic climate. While some merchants are sitting out the events, others are seizing the opportunity to gain market share and adapt to the changing consumer landscape.

References

[1] https://www.designrush.com/news/amazon-prime-day-23b-sales-adobe
[2] https://ca.finance.yahoo.com/news/tariffs-affect-amazon-prime-day-090321420.html