U.S. e-commerce spending reached $7.2 billion during the first day of Amazon's Prime Day, according to Adobe Analytics. But Amazon stock opened sharply lower in a down day for tech stocks.
The $7.2 billion in total U.S. e-commerce spending is an 11.7% increase from last year and slightly ahead of the $7.1 billion that Adobe projected prior to the event. Adobe previously projected total spending of $14 billion over the two-day event, which would mark a record total.
Prime Day is the annual discount shopping event for members of Amazon's Prime subscription service. But other websites and rivals such as Target and Walmart offer deals those days as well. Adobe tracks spending data across U.S. retailers.
Prime Day Spending Powered By Electronics, BNPL
Yesterday's Prime Day spending made it the largest overall day for e-commerce in 2024. About half of all spending came from mobile devices, according to Adobe.
Spending on electronics was up 33% compared to average daily spending in June, Adobe found. Video game spending was up 134%, while spending on small kitchen appliances jumped 82% and perfume and cologne 49%.
"Steep discounting has been the story of e-commerce so far this year, as consumers look to get the most value out of their dollar," said Vivek Pandya, lead analyst at Adobe Digital Insights, in a news release. "It is driving up demand for major categories like electronics and apparel, which have seen more modest growth in recent months, while also capturing back-to-school shoppers at just the right moment."
Meanwhile, about 7.5% of purchases Tuesday used "Buy Now, Pay Later," or BNPL, purchase options, according to Adobe. The $540 million in total BNPL spending marked a 17.1% increase from last year.
Amazon Stock Sharply Lower
With the overall markets gloomy on Wednesday, the new Prime Day sales data does not appear to be helping Amazon stock, nor any other e-commerce firm.
Amazon stock is down more than 3% near 186.50 on the stock market Wednesday. Shopify is down nearly 5% near 66.30. Etsy stock is down slightly in recent action while eBay shares are trading sideways.
However, both Walmart and Target were trading slightly higher in early action Wednesday.
Amazon is sliding along with other Big Tech firms. All of the Magnificent Seven stocks that drove last year's market rally are down early Wednesday.
The tech sell-off, which has hit chip stocks hardest, follows a report that the Biden Administration is considering stiffer regulations on exports of high-grade American semiconductor technology to China.
