To celebrate its 20th anniversary, Amazon is launching a new one-day shopping event on July 15, 2015, effectively creating a new retail event that is being compared to Black Friday in terms of the deals that will be offered to consumers.
On July 14, 2015, Field Agent surveyed 676 Canadians about their plans for Prime Day shopping on Amazon.
Will Canadians Buy On Prime Day?
“While we do see significant interest in Prime Day, the hype appears to be a bit bigger than the bite.” says Jeff Doucette, General Manager of Field Agent Canada. “35% of Canadians said that they planned to purchase from Amazon on Wednesday, but comparatively this is much lower than the 62% of Canadians who shopped Black Friday sales in 2014.”
The Field Agent study showed that for those who plan to shop at Amazon on Prime Day the average spending would be $173 for current Amazon Prime members. Canadians who have not yet bought their Prime membership were planning to spend less, with an average of $136 in planned purchases on July 15th. This compares to average Black Friday spending in 2014 of $333 per person.
Impacts For Amazon.ca
Prime Day appears to be a great recruitment tool for Amazon’s Prime service which offers free/reduced shipping for on-line purchases and unlimited photo storage in Amazon Cloud Drive with Prime Photos. Of those respondents planning to shop at Amazon.ca during Prime Day, 82% were not existing Prime members.
“It appears as Prime Day will drive new memberships for Amazon Prime in Canada.” stated Doucette. “Shoppers are betting that they will be able to save more through these exclusive one-day sales and reduced shipping charges than the $79 cost of an annual membership.”
What Will Canadians Buy?
Of those who will be shopping Amazon on July 15th, the most common product categories that Canadians want to purchase are: Electronics (52%), Books (30%), Clothing (21%), Toys (19%), Video Games (19%) and Health & Beauty (17%).
“While many of the categories Canadians will be shopping for on Amazon on Prime Day are traditional Amazon categories like Books, Toys & Video Games, it is very interesting to see Health & Beauty products so high on the shopping list.” noticed Doucette. “This is a category that may be the next to have on-line sales steal significant share from ‘bricks and mortar’ stores.”
On-Line Shopping Catching On In Canada
There is no denying that on-line retailing is catching on in Canada, with 93% of Canadians having shopped on-line in the past year. The average amount spent on-line shopping in the past year was reported at $881 per person.
Looking at Amazon in particular, we see that 69% of Canadians surveyed have shopped on Amazon in the past year. Amazon Prime members averaged $573 in spending on Amazon over the past twelve months, significantly higher than the $254 spent on Amazon by those shoppers who are not Prime members over the same period.
“Among frequent Amazon shoppers, Prime appears to be resonating as a good deal.” stated Doucette. “The next step for Amazon will be encourage its new Prime members recruited through Prime Day to spend as much or more than existing members, which would mean increased sales and market share for Amazon.”