Adobe Analytics: Prime Day drove record U.S. online spending, bolstered by deep discounts

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Now in its ninth year, Prime Day has cemented its status in the United States as one of the year’s biggest industry-wide e-commerce moments. This year’s event took place on July 11 and 12, generating 2023’s biggest daily online spending to date. Total spending across both days reached $12.7 billion in the U.S. — 6.1 percent year-over-year growth — and set a new Prime Day record.

During the event, Adobe saw online revenue jump in the U.S., due in part to increased spending in categories including appliances and apparel — up 45 percent and 17 percent versus June 2023 daily sales averages, respectively. This lift in online spending shows how discount days and events, such as Prime Day, help e-commerce providers maintain resilience and reach price-conscious consumers amid lingering inflation. Adobe’s report also points to how personalized shopping experiences, as well as Buy Now, Pay Later (BNPL) and curbside pick-up (BOPIS) options, are also helping e-commerce providers stand out or build loyalty.

Our analysis, powered by Adobe Analytics, provides the most comprehensive view into U.S. e-commerce by analyzing direct consumer transactions online. It covers over 1 trillion visits to U.S. retail sites, 100 million SKUs, and 18 product categories — more than any other technology company or research organization.

Steep discounts enticed consumers

Consumers saw this year’s Prime Day as an opportunity to tap into their inner bargain hunter and stocked up on categories where retailers offered major deals. During the event, consumers were enticed by steep discounts in categories such as electronics (peaking at 14 percent off listed price), apparel (12 percent) and toys (12 percent), along with home/furniture (9 percent), computers (8 percent), appliances (7 percent), sporting goods (6 percent) and TVs (5 percent).

Buy Now Pay Later enabled flexible spending

Consumers also embraced more flexible ways to manage their spending. Buy Now Pay Later (BNPL) orders were up on both days: On July 11, BNPL accounted for 6.4 percent of online orders and drove $461 million in revenue, up a staggering 19.5 percent compared to the first day of last year’s Prime Day event. BNPL accounted for 6.6 percent of online orders on July 12, driving $466 million in revenue, and growing 21 percent compared to last year’s second event day.

Averaged across both days, 6.5 percent of orders leveraged BNPL, representing $927 million in revenue, up 20 percent YoY. BNPL usage was driven by categories including apparel, home/furniture, and electronics.

Additional Adobe Analytics insights

• What consumers bought: During the two-day event, online sales were driven by categories including appliances (45 percent), housekeeping supplies (28 percent), and electronics (18 percent). Other surging categories included apparel (up 17 percent) and stationery/office supplies (up 76 percent), aided in part by back-to-school shoppers.

• Fulfillment: This year, curbside pickup was used in 20 percent of online orders for retailers who offer this service, up slightly from last year when curbside pick-up accounted for 19 percent of orders. Curbside pickup picked up steam during the pandemic and has remained a viable fulfillment option for consumers, especially for last-minute shopping needs around the holidays.

• Mobile shopping: Smartphones drove almost half (46.5 percent) of online sales this year, up from 43.7 percent last year, reflecting increasing consumer comfort with shopping on smaller screens — as well as last-minute impulse shopping.

• Impact of marketing dollars: Across major marketing channels, affiliates/partners saw the biggest lift when it came to revenue contribution (up 11 percent). Other major contributors were email (up 10 percent), display (up 5 percent) and social (up 4 percent).

Methodology

Adobe provides the most comprehensive view into U.S. e-commerce by analyzing direct consumer transactions online. The analysis covers over 1 trillion visits to U.S. retail sites, 100 million SKUs, and 18 product categories — more than any other technology company or research organization. Adobe Analytics is part of Adobe Experience Cloud, which over 85 percent of the top 100 internet retailers in the U.S.* rely upon to deliver, measure and personalize shopping experiences online.

*Per the Digital Commerce 360 Top 500 report (2021)