Amazon’s Prime Day runs into snags
Amazon’s website ran into some snags quickly Monday on its much-hyped Prime Day, an embarrassment for the tech company on the shopping holiday it created.
Shoppers clicking on many Prime Day links got only an abashed-looking dog with the words, “Uhoh. Something went wrong on our end.” Many took to social media to complain they couldn’t order items.
It wasn’t clear how widespread the outage was on one of Amazon’s busiest days of the year, but the hiccups could surely mute sales and send shoppers elsewhere. A company spokesman didn’t immediately respond to an email.
Amazon, which recently announced Prime membership would be getting more expensive, was hoping to lure shoppers by focusing on new products and having Whole Foods be part of the process.
While Amazon doesn’t disclose sales figures for Prime Day, Deborah Weinswig, CEO of Coresight Research, had estimated it would generate $3.4 billion in sales worldwide, up from an estimated $2.4 billion last year. Prime Day also lasted six hours longer than last year, creating extra work loads
for Amazon fulfillment centers such as those in Chattanooga and nearby Charleston, Tennessee, where thousands of workers are employed.
Expanding Prime Day also increased the pressure on other stores and chains such as Macy’s, Nordstrom, Best Buy, Walmart and Target to roll out their own promotions, said Charlie O’Shea, lead retail analyst at Moody’s.
“Brick-and-mortar retailers know that they have little choice but to continue offering their own deep discounts, which is evident in the proliferation of ‘Black Friday in July’ deals that are being launched earlier each year, as well as various ‘price match’ offers,” he said in a note Monday.
Several local nonprofits are asking residents to not leave them out when shopping on Prime Day, too. When shopping at smile. amazon.com, customers can choose from more than a million charitable organizations internationally to support. When purchasing products marked “Eligible for AmazonSmile donation,” 5 percent of the sale will be allocated to the customer’s chosen nonprofit.
Local nonprofits on AmazonSmile include Chattanooga Community Kitchen, Chattanooga Symphony & Opera, Siskin Children’s Institute and more. For a full list, visit the AmazonSmile website.
Amazon created Prime Day in 2015 to mark its 20th anniversary, and its success has inspired other e-commerce companies to invent shopping holidays. Online furniture seller Wayfair introduced Way Day in April, becoming its biggest revenue day ever.
Prime Day also usually helps boost the number of Prime memberships. Amazon disclosed for the first time this year that it had more than 100 million paid Prime members worldwide. It’s hoping to keep Prime attractive for current and would-be subscribers after raising the U.S. annual membership fee by 20 percent to $119 and to $12.99 for the month-to-month option.
Here’s a look at what happened this year:
WHOLE FOODS IN THE MIX
The Seattle-based company offered Prime members who spent $10 at Whole Foods from July 11-17 a $10 Amazon credit to use on Prime Day. And at its more than a dozen Amazon Books stores, discounts will expand beyond devices.
NEW PRODUCT LAUNCHES
Several companies agreed to launch new products on Prime Day, Amazon said. Among them, a Fingerlings unicorn doll whose horn lights up and a Delta kitchen faucet that can be turned on through Amazon’s Alexa voice assistant.
PRIVATE LABEL PUSH
Amazon has been building its own brands, and it offered deals such as 25 percent off its Rivet furniture brand, which didn’t exist a year ago. Other deals included 30 percent off its Mama Bear diapers and baby products.
BACK TO SCHOOL
The company said a big push in school supplies for Prime Day. It said customers bought more pencils, pens, notebooks, glue sticks, lunchboxes and backpacks on Prime Day last year than any other day of the year.
MORE COUNTRIES
Amazon has been expanding its Prime membership around the world, and four new countries were a part of Prime Day this year: Australia, Luxembourg, the Netherlands and Singapore.