Amazon Prime Day 2020 Raises $3.5B for Small and Medium Sized Businesses

The two largest sales days for third-party sellers ever

Though Amazon Prime Day 2020 was three months late, the two-day mega sale yielded $3.5 billion in sales, yielding the two largest sales days ever for third-party sellers, most of which are small and medium sized businesses. Amazon Prime Day is normally held in July, but due to the pandemic, Amazon held Prime Day in India in August and in 19 other countries, including the U.S., on October 13 and 14.

Amazon Prime members saved more than $1.4 billion on deals in virtually every category, including home, electronics, nutrition and wellness, Amazon products like the Echo Dot, and toys and games. Regular members pay $119 a year, or $12.99 a month, for a Prime membership. Student memberships are available at a 50% discount, and customers who receive government assistance through EBT programs may apply for a discounted membership priced at $5.99 a month.

“We are thrilled that Prime Day was a record-breaking event for small and medium businesses worldwide, with sales surpassing $3.5 billion—an increase of nearly 60% from last year,” said Jeff Wilke, CEO Worldwide Consumer, in a news release. “We’re also proud that Prime members saved more than $1.4 billion, and we look forward to providing more opportunities for our selling partners to grow and customers to save throughout the holiday season.”

Amazon Prime Day highlights

Highlights from the popular annual event include the following:

  • Some of the most popular categories for third-party sellers were bedding, wireless accessories, nutrition and wellness, arts, crafts and sewing, and health care.
  • In the two weeks leading up to Amazon Prime Day, tens of millions of Prime members supported small businesses by spending $900 million through Amazon’s “spend $10, get $10” promotion. They earned the $10 shopping credit by shopping at Whole Foods Market, Amazon Fresh, Amazon Go, Amazon Go Grocery, Amazon Books, Amazon Pop Up and Amazon 4-star stores.
  • In the two weeks prior to Amazon Prime Day, Utah, California and New Jersey had the biggest sales per capita.
  • Amazon’s Echo Dot was the most popular Amazon product sold on Prime Day 2020.
  • In the United States, the most popular products sold were iRobot Roomba Robot Vacuum, MyQ Wireless & WiFi Enabled Smart Garage Door Opener, LifeStraw Personal Water Filter, Goli Apple Cider Vinegar Vitamins, and Kids Against Maturity: Card Game for Kids and Families.
  • Millions of Alexa-compatible devices were sold during the sales event. Bose headphones and Fitbit Versa 2 were among the most popular items sold.
  • Members bought more Fire TV Edition Smart TVs than during any other Amazon Prime Day event.
  • The fastest Prime Day delivery was made in 29 minutes and 54 seconds.
  • More Prime members opted to ship their products to an Amazon Hub pickup location than in 2019. The top 10 U.S. locations for Hub pickups include Brooklyn, Chicago, Dallas, Las Vegas, Los Angeles, New York City, Philadelphia, Portland, San Jose, and Seattle. Amazon Hub is a contactless service to pick up and return Amazon packages.

Kennedy Lowery of Live by Being, a skincare and wellness company, is a third-party seller for Amazon. Lowery commented on the Amazon Prime Day.

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“2020 has been a rollercoaster for small businesses like mine, but Prime Day helped us sell a whole month’s worth of inventory in two days. In addition, with the Spend $10, Get $10 promotion my business saw sales double on Amazon Handmade even before Prime Day started. The increase in sales will definitely help support operations as we prepare for the rest of the holiday season,” said Lowery.

Amazon Holiday Dash

In related news, on Friday, Amazon announced Amazon’s Holiday Dash, a program of daily Black Friday deals that started last week. New deals will be available every day at Amazon.com/HolidayDash. Most products purchased and delivered between now and December 31 can be returned until January 31, 2021. Popular categories for the daily deals are Amazon brands, toys and games, fashion, home, health and personal care, electronics, entertainment, lawn and garden, automotive, tools, pets and more.

“Amazon’s Holiday Dash deals event is serving up holiday cheer and epic savings early this year to give customers more time to shop and save,” said Amazon in an October 16 news release.

Insider Take

This is great news for Amazon, Amazon’s third-party sellers and Prime members. Everybody wins. This is particularly true in a year that has been unpredictable and unprecedented. People are turning to online shopping to avoid having to go out in public. Amazon’s deals are making it more affordable to do so, and they provide fast shipping as well as contactless pick-up options for those who would prefer not to have their items delivered to their homes.

Though each year Amazon has more competition from retailers like Target and Walmart, Amazon Prime members get far more perks than just daily deals and free shipping. They get access to Prime video, online photo storage, Amazon Music and so much more. The Prime membership package will be difficult, if not impossible, to match. Love them or hate them, Amazon continues to be successful, and its Prime members and third-party sellers are reaping the rewards.