Adobe reveals USD $14.2 billion online sales during Prime Day

Adobe has released new shopping insights from Amazon Prime Day, revealing an online sales total of USD $14.2 billion for US retailers—a growth of 11% year-over-year (YoY). According to Adobe Analytics data, consumers spent USD $7.2 billion on the first day of the Prime Day event, marking an 11.7% increase from the previous year. On the second day, consumers spent USD $7 billion online, which is up by 10.4% YoY.

The research highlights a shift in consumer behaviour towards mobile shopping, with nearly half (49.2%) of online purchases made via mobile devices. Across both days, USD $7 billion were spent through mobile devices, reflecting an 18.6% YoY increase. This mobile shopping trend indicates a significant change as consumers move away from desktop shopping.

Adobe Analytics further broke down the sales growth by category, showing a strong demand for various products. Online sales for electronics surged by 61%, small kitchen appliances increased by 76%, and apparel saw a 36% rise. The report attributed part of the growth to back-to-school shopping, with the Prime Day event occurring closer to the start of the school year compared to the previous year. Items such as backpacks, lunchboxes, and stationery witnessed a 216% increase in sales, while kids' apparel sales rose by 165% during the event.

Additionally, the report outlined a notable product refresh cycle, with consumers investing in new electronics and home furnishings. Among electronics, sales of tablets increased by 117%, televisions by 111%, and headphones and Bluetooth speakers by 105%. Sales of fitness trackers were up 88%, computers up 80%, smartphones up 71%, and cameras up 60%. In home and furniture, sales of small kitchen appliances were up 76%, kitchenware and cookware by 25%, mattresses by 21%, and home office furniture by 14%. Bedroom furniture sales rose by 11%. In the apparel category, suits sales rose by 36%, outerwear by 19%, and both footwear and accessories by 17%.

The report also highlighted that the "Buy Now, Pay Later" (BNPL) payment method accounted for 7.6% of online orders, generating USD $1.08 billion in online spend, up 16.4% YoY. This reflects a growing preference among consumers for flexibility in payment options. Furthermore, the report noted that retailers leaned into discounts heavily to drive growth, offering steeper discounts across various categories compared to the previous year. For instance, electronics discounts peaked at 23% off the listed price, up from 14% in 2023.

Social media also played a considerable role in driving sales, with a 11.1% increase in revenue contribution from social networks over the two days, following closely behind display advertising's 12.5% increase. Other significant contributors to online sales were direct traffic and affiliates/partners, which were up 10.7% and 8.2% respectively.

Curbside pickup was another prominent fulfilment method, utilised in 18.9% of online orders over the event, down slightly from 20.2% last year. This method remains a convenient option for many consumers, highlighting its continued relevance.

Adobe's forecasts predict an overall online spending of USD $84.4 billion for the full month of July 2024, indicating an 8.2% YoY growth. By September 2024, nearing the holiday shopping season, Adobe expects USD $732 billion in online spend for the year, reflecting a 7.3% YoY growth.

The report also touched on the impact of inflation, with the Adobe Digital Price Index showing eCommerce prices have fallen for 22 months, down 4.2% YoY in June 2024. This suggests that the strong consumer spending observed this year has been driven by new demand rather than higher prices.