Amazon’s four-day Prime Day gamble sees day one sales plunge, all you need to know

Amazon’s decision to extend Prime Day to four days backfired on Day 1, with sales plunging 41% compared to last year’s opening, according to e-commerce firm Momentum Commerce.

The company, which manages $7 billion in annual Amazon sales for brands like Crocs and Beats, reported shoppers adopted a “wait-and-see” approach rather than rushing to buy. Amazon disputed these figures as “highly inaccurate” but didn’t provide counter-data.

Wall Street remained optimistic, pushing Amazon’s stock up 1.5%, while analysts cautioned it’s too early to judge the full event.

Discount delays and bargain hunting define day one

Shoppers flooded Amazon but bought cautiously, filling carts without checking out immediately. Nearly two-thirds of purchases were under $20, with Dawn dish soap, Premier protein shakes, and Finish dishwasher aids topping sales charts.

The average item cost dropped to $25.46 from $28 last year as buyers prioritized essentials over big-ticket electronics. Momentum Commerce CEO John Shea noted the four-day format eliminated “fear of missing out,” encouraging “treasure hunting” behavior.

Tariff uncertainties also led some brands to offer smaller discounts (21% average vs. 24% in 2024), further dampening urgency.

Rivals benefit as online spending surges overall

Despite Amazon’s slow start, total US online sales jumped 9.9% to $7.9 billion on Day 1 as Walmart, Target, and Wayfair ran competing sales . Adobe Analytics projects thatthe four-day period could hit $23.8 billion across all retailers.

Momentum observed a “halo effect” where Prime Day buzz boosted non-Amazon sites, with direct-to-consumer brands seeing stronger growth . Amazon Prime VP Jamil Ghani defended the extended format, noting shoppers wanted more time and highlighting growth in everyday categories like teeth-whitening strips.

Tariffs and consumer caution cloud Prime Day’s future

Trade policy uncertainty loomed over the event, with brands trimming discounts due to fears of revived tariffs on Chinese imports.

This marked Prime Day’s first test as a prolonged “mid-year Black Friday” amid declining consumer confidence. While Amazon aimed to boost membership value with themed “Today’s Big Deals,” shoppers treated the event as a pantry-stocking opportunity rather than a splurge.

The outcome hinges on Days 3-4: Momentum still forecasts a possible 9.1% overall sales gain if late deals trigger pent-up demand.