Amazon’s Prime Day, a global shopping sale for its loyalty program members, doesn’t start for several more hours, but both the e-retailer’s investors and customers are already reaping the benefits.
Amazon's stock prices increased $11.12, or 2.44 percent to $466.69 per share Tuesday, making Amazon’s investors nearly a combined $5.18 billion richer as of 4 p.m. ET. When Amazon first announced the sale date, some were skeptical. "The timing from a calendar perspective being in the doldrums of the summer months, and the lack of awareness of the event from a marketing perspective, are going to be headwinds," Channing Smith, managing director of Capital Advisors and a longtime holder of the stock told TheStreet last week. But it seems like investors are keen on Amazon drumming up interest in the middle of July; Amazon's stock prices started to climb at around 10 a.m. after dropping to $458.16, and peaked at 3:05 p.m. when a share was $469.36 before sliding down in the last hour of trading.
Amazon Prime customers, meanwhile, got a sneak peek at what will go on sale Wednesday. For example, shoppers can get $30 off of the 79-Kindle, Amazon’s e-reader; a Husqvarna lawn mower for under $300; and 60 percent off on Amazon Elements Baby Wipes, to name a few. Many of the deals listed were on electronics, including a 32-inch LED TV for $75 and a Chromebook laptop for $199. Amazon also listed several deals on e-readers and hard-copy books.
Additionally, Amazon is teasing deals on current listings, including 50 percent off a Nikon COOLPIX S3700 Digital Camera listed at $116.95 (meaning subscribers could save at least $58.47 on the camera during Prime Day). Although the company did not specify brands for some products, such as the TV deals, the potential savings are promising.
The company said there would be thousands of deals for Prime users in certain countries, such as the US, Spain, and Japan. Shoppers in the US will be able to find deals beginning at midnight Pacific time, with new offers coming in as often as every 10 minutes, according to Amazon. Customers in Atlanta, Austin, Baltimore, Brooklyn, Dallas, Manhattan, and Miami also will have access to deals on Prime Now, Amazon’s mobile app that lets customers order essential items and have them shipped to them within one to two hours.
Savvy shoppers can also check out what Wal-Mart will bring to the table on Wednesday. The retail giant is going head-to-head with Amazon by also offering massive discounts. Wal-Mart is tapping into customers’ concerns of getting the best deal possible with its “Dare to Compare” promo: Wal-Mart compares its prices with Amazon’s prices. But, that marketing tactic may only work on people who do not have Amazon Prime; people with Prime are very loyal to the e-retailer and spend more money at Amazon than non-Prime users, as The Christian Science Monitor has previously reported. And this giant sale will lure in even more premium – and loyal – customers.