New research has found that online events like Amazon Prime Day have encouraged as many as a quarter of Britons to keep as much spending as possible contained to small and local businesses negatively impacted by the Covid-19 pandemic.
According to a study undertaken by the team behind the global network Awin.com which analysed the company’s online sales data alongside a survey of more than 2,100 British adults, 76 per cent of respondents said they were more likely to wait until Black Friday to shop for deals than Amazon Prime Day.
Three in five Britons have already made an effort to shop locally over the past 12 months, with almost a third confessing to actively avoiding making purchases through Amazon, the research revealed.
Historically, Amazon Prime Day has caused an upsurge in retail sales across the board. Awin’s data backs this up, indicating that during Amazon Prime Day 2019, online sales revenue rose by 24 per cent compared to the month before.
Despite not tracking Amazon across its own network, the data team at Awin nonetheless noticed a significant increase in revenue and sales from a range of its retailers coinciding with Amazon Prime Day, highlighting what it calls the ‘halo effect’ that the day of Amazon discounts has had on sales during previous years.
The retail sector saw a more modest 10 per cent increase in sales compared with the previous month, with office supplies, alcohol and white goods emerging as categories benefitting from the biggest spikes in sales. When comparing Prime Day 2019 to 2018, sales last year were also up by four per cent, with the average order value up a further nine per cent.
As part of the survey, all respondents were asked if they’d shopped on Amazon Prime Day in previous years; and whilst nearly one in five (19 per cent) had made a purchase on one of the days, a further 45 per cent revealed that they had used the event only to browse and see what deals and discounts were on offer.
What’s more, over a quarter of shoppers (26 per cent) revealed that Amazon Prime Day has actually encouraged them to shop more locally, either on the day itself or following coverage and advertising of the event.
Relevant participants were then asked whether they were planning to partake in any online shopping during Amazon Prime Day 2020: 15 per cent said that they were intending to, while 30 per cent revealed that they were going to try and shop locally instead.
The remaining 55 per cent were either unsure, or were not planning to shop.
Over three quarters of respondents to the survey said that they were choosing Black Friday shopping over Amazon Prime owing to a better range of deals, followed by the reason that it was ‘easier to support local, smaller businesses on Black Friday.’
As many as 62 per cent of the surveyed group said that they had made a conscious effort to shop locally more often as a result of the impact of the Covid-19 pandemic. 31 per cent said that they have been trying to avoid using Amazon in the same time period.
Joelle Hillman, retail client partner at www.Awin.com, said: “As well as delivery being the main reason for the delay of Prime Day 2020, the pandemic also poses other threats to this year. With the UK governments furlough scheme ending in October and Black Friday coming just a month later, consumers may be encouraged to wait until their situation becomes clearer in terms of their financial position and disposable income to engage in online shopping, as well as wanting to hold out until they are able compare BF deals across multiple online retailers.
“It’s also worth considering some other significant changes that have impacted Amazon in 2020. In April this year the online retail giant dropped affiliate commission rates substantially, and networks felt the benefits with many affiliates flooding to join new networks and programmes to promote different brands. We’d therefore expect to see less noise surrounding Amazon Prime Day this year as a result.”