Thursday, July 13, 2017
Amazon is showing off its marketing strength with Prime Day. Judging by the results, the company has formidable power. Few other retailers could pull off the success that Amazon had. Right now, it stands alone in retail for its ability to create a shopping day that millions take advantage of. It is Christmas in July, Black Friday four months early. Amazon and its vendors raked in $2.5 to $2.9 billion. That is a lot of Echo dots (the best selling product). In addition, Amazon induced millions more to sign up as Prime customers. Conventional and online retailers must be quaking in their shoes with Amazon's success. What does it mean for them? The answer to that question can't be good for most of them. They can join in with their own sales on Prime Day but that is hardly going to help if they are not on Amazon. They can attempt to create their own Prime Day, but most don't have the marketing power to do it. They can watch their sales erode in July, but that is defeatist. Eventually they will have to respond in some fashion.