Amazon Prime Day household spending in US down 16%, survey says

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Shoppers have high expectations for steep discounts, but brands and merchants are struggling owing to rising costs and continued uncertainty regarding tariffs.

Shoppers have high expectations for steep discounts, but brands and merchants are struggling owing to rising costs and continued uncertainty regarding tariffs.

PHOTO: BLOOMBERG

Amazon.com’s annual Prime Day sale is off to a slow start, according to a survey conducted by market research firm Numerator.

The average household surveyed had spent about US$89 (S$115) as at 4pm New York time, Numerator said on June 23, down about 16 per cent from the same time during the 2025 event, which began in July.

Shoppers stocked up on things like trash bags, cat treats and make-up remover, according to the survey, which is based on more than 6,700 Prime Day orders from more than 3,600 households.

Amazon’s marquee promotion – now in its 12th year – faces a squeeze. Shoppers have high expectations for steep discounts because higher petrol prices have crimped their budgets. But brands and merchants are struggling to meet those expectations owing to their own rising costs and continued uncertainty regarding tariffs.

Global marketing firm PMG estimated Prime Day discounts would be shallower in 2026, continuing a multiyear trend. The firm analysed discount data on tens of millions of products over the past two years.

“Third-party data on deal selection and purchasing trends is often inaccurate, as is the case with these reports,” Amazon spokeswoman Maxine Tagay said in an e-mail, adding that the company was “pleased with the early customer response”. She said more than one million items are being offered at their lowest price so far in 2026 and touted more than 100,000 deals discounted by at least 40 per cent.

Almost 90 per cent of Amazon Prime subscribers plan to shop the sale, according to an April survey conducted by marketing agency Tinuiti. But they will also surf the web and use artificial intelligence tools to find the best deals.

More than seven in 10 shoppers said products would have to be discounted by at least 30 per cent for them to consider it a good deal, with one in 5 deeming at least half off a good discount, according to Tinuiti’s survey.

US consumers will spend US$26.3 billion online with Amazon and other retailers during the event, up 9 per cent from the July 2025 four-day sale, according to Adobe, which tracks visits to retail websites. Discounts are expected to be in line with those in 2025, when apparel and electronics sellers offered about 23 per cent off. Adobe expects back-to-school apparel to be a leading category.

Lofty oil prices and continued tariff uncertainty made offering steep discounts difficult in 2026, said Josh Ketter, proprietor of Lincoln, Nebraska-based Spreetail, which sells swimming pools, trampolines, patio furniture and thousands of other products on marketplaces like Amazon, Walmart and TikTok Shop. Many of his products are made with petroleum-based plastics, so the Iran war drove up his expenses.

“Last year we still had some inventory that came in before the tariffs, so we were in a better position,” said Ketter, who said his average Prime Day discount in 2026 is in the 15 per cent to 20 per cent range. Shoppers are trading down to lower-cost versions of products, for instance picking a US$500 swimming pool over a US$1,000 one, he said.

About half of shoppers said inflation is one factor compelling them to seek deals on Prime Day, according to a survey by Numerator, which tracks online spending. The average household plans to spend about US$187 during Prime Day and will compare prices on competing sites like Walmart, Target and Costco Wholesale, according to the survey.

Ohio retiree Patrice Kihlken browsed the sale on June 23 for discounts on summer dresses and jewellery-making supplies but came up empty.

“It’s just underwhelming to me,” said Kihlken, 65. “Most of the things that I looked at, they’re 5 per cent, 10 per cent, maybe 15 per cent off. Anything that’s really nice is not on sale.” BLOOMBERG

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