{"id":1540141,"date":"2024-07-21T06:17:28","date_gmt":"2024-07-21T10:17:28","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1540141"},"modified":"2024-07-25T13:19:22","modified_gmt":"2024-07-25T17:19:22","slug":"prime-day-2024-what-we-dont-know","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/prime-day-2024-what-we-dont-know","title":{"rendered":"Prime Day 2024: What We Don’t Know"},"content":{"rendered":"

Here’s what we don’t know about Prime Day 2024. Amazon says the event was global but famously provides no revenue details. We’re left with estimates by Adobe and others of U.S.<\/em>\u00a0purchases.<\/p>\n

Thus we don’t know the worldwide volume or the impact on Amazon’s income since most of the purchases are presumably with third-party marketplace sellers from which Amazon earns a commission \u2014 $1 billion of purchases at a 20% commission would be $200 million of earnings to Amazon.<\/p>\n

Less clear, too, is the bottom-line effect of Prime Day discounts on third-party merchants who tell Practical Ecommerce<\/a> that Amazon takes roughly 50% of every transaction with sales commissions, FBA fees, and advertising costs.<\/p>\n

Certainly Prime Day is good for consumers and Amazon. The latter carries little inventory risk and earns fees and commissions no matter the selling price. Amazon is mostly a service provider<\/a>, after all, and most of that is from its cloud computing division, not marketplace activity.<\/p>\n

Nonetheless, here’s our recap of Prime Day 2024.<\/p>\n

Prime Day 2024 Recap<\/h3>\n