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Posted by
Two Blokes Jul 3 -
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Amazon.com Inc (NASDAQ:AMZN)'s upcoming Prime Day sale event could drive more than $21 billion in sales, according to Bank of America analysts. This is driven by Amazon’s decision to extend the sale to 96 hours, double last year’s duration, starting July 8. This would represent an almost 60% increase compared to last year's Prime Day results and would account for more than 10% of Amazon's anticipated gross merchandise volume for the third quarter. Specifically, they project first-party sales will rise by 55% year over year to reach $11.5 billion, while third-party sales could increase by 67% to $10 billion. "By extending the duration of savings, it indicates that Amazon possesses enhanced retail logistics capabilities to provide promotions, and that inventory levels are not a limiting factor," the analysts wrote in a research note,” they wrote. The analysts added that a longer Prime Day could pressure profit margins if shoppers focus on low-margin products or if aggressive promotions cut into earnings.
