Amazon’s Aggressive American Prime Day 2019: Day 1 Review: North America

Amazon’s Prime Day 2019 is set to be the biggest ever. The event has been extended to a full 48 hours this year - starting midnight (PDT) Monday, July 15, 2019 - up from 36 hours last year.

This year, the inclusion of the United Arab Emirates means Amazon’s Prime Day now reaches 18 countries. This, with the extra 12 hours of deals, means Amazon looks set to surpass the 100 million items sold last year.

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Amazon’s lowest prices ever

Amazon Devices are typically amongst the top best-sellers.  Amazon has positioned the Fire TV Stick and Echo Dot 3rd Generation to perform even better this year, as they were the most prominent deals at 8am (PDT). Both products are listed at their lowest prices ever, at $14.99 and $22.00 respectively.

This is the third shopping event in a row in which the price of the Fire TV Stick has fallen by $5. It was $24.99 on Prime Day 2018, $19.99 on Black Friday 2018 and now $14.99.

Prime Day 1
Amazon website 11am (EDT) – July 15, 2019

 

New this year is the Amazon Echo Show 5, a competitor to the newly rebranded Google Nest Home Hub. The Amazon offering has a smaller screen at 5.5”, compared to the 7” of the Google device. 

Prime Day 2
Amazon website 11am (EDT) – July 15, 2019

 

Amazon’s product was introduced at little over a month ago at $89.99 but drops to $49.99 on Prime Day. This means the product significantly undercuts the Google Nest Home Hub by $29.01, $79 on Target and Walmart ($79.99 on Best Buy). 

eBay takes the challenge to Amazon and its rivals

However, if Prime Day shoppers look to eBay, they will get a much better deal with the Google Nest Home Hub available for just $59.

Prime Day 2
eBay website 11am (EDT) – July 15, 2019

 

This low price from eBay is sure to attract many shoppers and will disrupt the sales of Best Buy, Target and Walmart on this product. The Amazon Echo Show 5 however is still likely to be a hit, in spite of its smaller screen, as eBay will have limited supplies of the Home Hub, and the price remains $9.01 more than the Echo Show 5.

Also new this year, Amazon is promoting ‘Featured Lightning Deals’ on ‘top-tier’ brands. Supporting this is a Prime Day live feed which demonstrates the products. At 11am (EDT) these included the Google powered Chromebooks from Acer and HP, as well as the Ticwatch Smartwatch.

 

Prime Day
Amazon website 11am (EDT) – July 15, 2019

 

Apple becomes the battleground between retailers during Amazon’s Prime Day

Amazon, Best Buy, Target and Walmart all ran deals on Apple products, particularly the iPad Pro.

Prime Day
Amazon and Best Buy websites 11am (EDT) – July 15, 2019

 

Best Buy describes its iPad promotions as “Student Deals”.  This may be in response to Amazon opening an ‘Off to College’ store which offers laptop and tablet deals to students.

A straight price comparison across multiple retailers is difficult to achieve while retailers alter deals based on colours, memory and specs (Wifi or Wifi+Cellular). However, in the small number of instances where a similar comparison can be drawn, Amazon has either the sole or joint lowest price.

Comparisons are much more easily drawn on the Apple Watch Series 3 (38mm - Space Grey). This is one of Walmart’s most prominent deals at $199 although, unfortunately for Walmart, Amazon also decided to promote it - and at $30 less. However, the Amazon deal appeared to be out of stock by 12.30pm (EDT). Best Buy and Target did not promote the product.

Not all deals are really Prime Day bargains

Best Buy advertises its deals on various models of the Apple Macbook, however one model was the same price just eight days ago. There are also deals on the Lowe’s, Target and Walmart websites where the products were cheaper in months prior. Of particular note is the 70” VIZIO TV that was $20 cheaper just eight days ago on Target.

Will Amazon’s aggressive pricing spark last minute drops from rivals?

We don’t anticipate a huge amount of new deals to emerge overnight with many deals scheduled to run across both days. However, the seemingly aggressive pricing by Amazon may prompt rivals to think twice as, not only are they losing out compared to Amazon's own devices, but also on items they are promoting themselves. This aggressive behaviour could spark last minute price swings across other retailers. Stay tuned for tomorrow’s installment and get the news as it breaks!

 

Learn what Prime Day 2019 means for the 2019 holiday shopping season and get our analysis on Amazon’s Q2 Earnings Report by attending our July 26th Amazon Monthly Briefing webcast featuring Flywheel Digital’s Patrick Miller. Save your spot here.

 

Click here to read a recap of day two, Amazon Shuffles Promoted Items on Day 2 of Prime Day: North America.

Chris Elliott
Article by:
Chris Elliott
Senior Insight Analyst, Edge by Ascential
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