Good news for Amazon: Prime Day just turned into a holiday shopping event | National News

Prime members skew higher income, which may make these shoppers less susceptible to job losses and a stimulus bill not being passed, analysts say. Prime shoppers may be spending less on travel and other leisure activities than they did before the pandemic. This means they’ll have more to spend on electronics, kitchenware and other items from Amazon.

“If anything, many people are flush with cash and it could drive higher sales this year,” said Brian Yarbrough, analyst at Edward Jones.

Plus, the pandemic has given a boost to ecommerce spending as more people shop online from home. Amazon is benefiting from the trend.

Telsey Advisory Group forecasts Prime Day sales of up to $11 billion for Amazon, a 40% increase from last year’s event, which was held in July. The spike in online shopping as consumers order from home and increased participation from small businesses is expected to help drive higher sales, the firm said.

“Prime Day does have additional importance to Amazon this year,” said Andrew Lipsman, analyst at market research firm eMarketer. “It also likely signs up new Prime members at the exact right time and puts Amazon in an even better position to gain market share in November and December.”

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