Shoppers are likely to spend a record $14 billion during Amazon’s Prime Day two-day online extravaganza this week, data analytics firm Adobe said on Monday.
The spending frenzy, which kicks off Tuesday, is expected to increase by about 10.5% from last year and acts as a vital barometer for the all-important back-to-school shopping season.
While Amazon spearheaded the event 10 years ago, dozens of retailers, including some of its largest rivals like Walmart and Target, have copied its playbook with their own shopping discount events in July. Both Target and Walmart held their events already.
The predicted record spending over the next two days is expected to be driven by steeper-than-normal discounting, according to Adobe.
Huge discounts on everything from electronics, apparel, sporting goods and furniture are expected to range from 9% to 22%.
“We are expecting really strong momentum for back-to-school,” said Vivek Pandya, Adobe’s lead insights analyst.
Online spending is up 80% from July 1-7 compared to the same period in June, the data firm reports.
Electronics will carry the largest discounts – 22% compared to 14% last year – while apparel will be 20% off compared with 12% last year and home goods and furniture will be discounted by 17% compared to just 9% off last year, according to the report.
Overall, e-commerce prices have fallen for 22 straight months – down by 4.2% in June compared to a year ago, according to Adobe.
Revenues from shopping activity on Amazon alone was up by 10% from January to May, according to data intelligence firm Similarweb.
The average selling price on Amazon is down by 3% over the same period, Similarweb reports.
Amazon Prime Day has grown in importance over the years, accounting for as much as 2% of the online behemoth’s global sales, according to CFRA Research.