How Amazon Prime Day boosts e-commerce app usage
On July 11 and 12, Amazon's annual 48-hour online sale, Prime Day, returned for its ninth edition. This mega-sale has become one of the biggest e-commerce events of the year, with shoppers snatching up major discounts from various retailers. Despite persistent inflation and an uncertain economic climate, this year's Prime Day served as a crucial test of consumer demand, and appetite for deals.
Amazon sold over 375 million products worldwide, helping consumers save $2.5 billion on discounted deals. In the U.S. alone, shoppers spent an incredible $12.7 billion during the two-day shopping frenzy, a 6.5% increase from the previous year. Additionally, the average Prime Day order in 2023 reached $56.64, a slight increase from $53.14 in 2022.
How Amazon Prime Day benefits competing retailers
Amazon Prime Day has evolved into a significant opportunity not just for Amazon but for other e-commerce businesses. Marketers are taking advantage of this event to improve their platforms, generate brand recognition, and advertise their products. Retailers like Walmart, Best Buy, and Target have also taken advantage of the event by offering their own special promotions and discounts. In fact, Walmart hosted an event called Walmart Plus Week, while Best Buy's “Black Friday in July” and Target Circle Week also got in on the action. According to Adobe Analytics, consumers spent an incredible US$6.4 billion on July 11 on Amazon and other US retail websites.
Building on our analysis from last year, we're taking a closer look at the performance of e-commerce apps during Amazon Prime Day in 2023. As Prime Day's performance is an early predictor of the holiday season, brands should pay close attention to it. Our analysis provides app marketers with valuable insights into user behavior and preferences that they can use to anticipate and prepare for next year's event and the holidays.
Deal discovery app installs skyrocket
We saw the halo effect of Amazon Prime Day sales as e-commerce app installs and sessions soared. During the two-day shopping bonanza in 2023, global e-commerce app installs skyrocketed by an impressive 60% year-over-year (YoY) and surpassed the H1 average by 18%.
Delving deeper into the e-commerce sub-verticals, deal discovery apps saw the highest YoY growth during Prime Day 2023, increasing by an incredible 456%. Installs for deal discovery apps were also 55% higher than the H1 2023 average, indicating that users were searching for the best deals on their must-have wishlist items in a shaky economy. A recent survey revealed that almost 80% of consumers have reduced their spending on nonessential items such as clothing, home décor, and entertainment due to higher prices over the last six months. This clearly indicates that consumers are becoming more mindful of their spending habits and prioritizing their expenses.
Meanwhile, shopping app installs rose 53% during this Prime Day compared to the same period last year and increased by 13% compared to the H1 2023 average. Marketplace app installs also saw an uptick, with a 12% YoY increase during Prime Day 2023 and a 7% increase compared to the H1 2023 average.
Shopping app usage also soars during Prime Day 2023
During Prime Day 2023, users were more engaged than ever with e-commerce apps as global sessions experienced an impressive 21% YoY growth. Compared to the first half of 2023, global sessions also grew by 5%, showing the tremendous impact of this online sale event. Among the sub-verticals, shopping apps emerged as the front-runner, with a notable 32% YoY surge in sessions during Prime Day 2023. Shopping app sessions were also 7% higher than the H1 2023 average.
While deal discovery app installs reached new heights during Prime Day 2023, session growth was slightly lower but still commendable, with a 27% YoY increase. This suggests users actively sought deals and discounts, perhaps for back-to-school gear or early holiday gifts.
Marketplace app sessions also witnessed a significant YoY growth of 15% during Prime Day 2023. Moreover, marketplace app sessions were 4% higher than the H1 2023 average.
Prime Day success: How e-commerce apps can come out on top
Amazon Prime Day allows consumers to purchase coveted products at a reduced price, providing a mid-year sales boost for the e-commerce giant. In this year's event, Amazon employed several effective tactics that other online shopping platforms can adopt to entice new users, retain their loyal customer base, and generate maximum revenue.
Offer flexible payment with Buy Now Pay Later
Buy Now Pay Later (BNPL) options contributed 6.5% of Amazon Prime Day orders in the U.S. This accounted for an impressive US$927 million in revenue, showing a 20% increase from last year. The growing popularity of BNPL options indicates that consumers are feeling the pinch of a cash crunch. This is also a sneak peek of what we can anticipate in the coming months, particularly during the holiday shopping season. Based on this data, app developers and marketers should consider adding BNPL options to their services to boost sales and attract more customers.
Boost engagement and reach with social media
Amazon shook things up during Prime Day 2023 by turning to TikTok for an interactive and engaging experience. In collaboration with content production shop Tool, they created "Duel for Deals," which combined a game-show format with shoppable content. TikTok influencers played games while viewers worked together in the chat to unlock exclusive deals. The livestream offered viewers access to the deals without leaving the app. This strategy generated a significant amount of organic social media engagement. With the holiday season fast approaching, e-commerce app marketers can take a page from Amazon's book and leverage livestreams and shoppable content on social media to promote their online sales events for the next Prime Day and the holidays.
Ready to take your app to the next level? Download our 2023 edition of Mobile app trends: A global benchmark of app performance for in-depth analysis, actionable data, and key insights.
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