Amazon extends Prime Day to four days to compete with rivals
- Amazon has informed independent sellers about the insufficiency of its traditional two-day Prime Day sale.
- Analysts argue that extending the sale might enhance consumer engagement amid challenging economic conditions.
- This potential extension aims to bolster Amazon's competitiveness against other retailers' longer sales events.
In March 2025, Amazon is taking significant steps to enhance its Prime Day shopping event, which has traditionally spanned just two days. Multiple reports have highlighted that Amazon communicated to independent sellers, who significantly contribute to its sales, that the two-day format is insufficient for the upcoming Prime Day. This year marks the 10th anniversary of the event, and the suggested changes come amidst a challenging economic landscape where consumers are increasingly looking for deals. Many of Amazon's competitors, including major retailers like Walmart and Target, have also recognized the value of longer promotional periods, extending their own summer sales to attract customers. The proposed extension plans to last up to four days, offering a greater opportunity for both Amazon and its sellers to maximize revenue. Analysts believe that this move is vital for engaging consumers, particularly when they are facing economic difficulties such as tariffs and inflation. Arun Sundram, a senior equity analyst at CFRA Research, emphasized the importance of this extension: it could lead to improved engagement as many consumers search for the best possible deals during uncertain times. Historically, Prime Day has had a powerful influence on retail sales, generating substantial revenue for Amazon and its partners. In 2024, the event resulted in $14.2 billion in sales over just two days, reflecting an 11.8% increase compared to the previous year. This showcases the event's growing significance within the retail landscape, where it serves as a major promotional period. Despite the potential for a longer Prime Day, Amazon opted to introduce a separate event in the fall, called Prime Big Deal Days, rather than extending the summer event. With its recent financial performance indicating strong growth, Amazon generated $638 billion in net sales during 2024 and saw an increase in net income to $59.2 billion. As the online retail environment becomes increasingly competitive with rivals stepping up their offer, the company’s decision to consider an extended Prime Day underscores its commitment to maintaining its leading market position. Amazon's Prime membership costs $14.99 per month or $139 annually, providing members with exclusive deals, free delivery, and other benefits that are expected to draw more consumers in during the extended event.