Amazon’s second Prime Day event of the year, held from October 8th to the 9th, has wrapped up, and it revealed some nuanced trends in consumer spending. Although the headline numbers show a slight dip in overall spending compared to last year’s October Prime Day, a closer examination using data from Facteus, the leading credit card transaction and alternative data provider, tells a more complex story.
The October 2024 Prime Day event saw a slight drop in spending, with total sales down 1.7% compared to last year’s October event — falling from $67.92 million in 2023 to $66.47 million. This hints that shoppers are becoming more cautious, likely due to ongoing economic pressures and higher prices.
When you look at daily spending trends, Day 1 showed a slight dip, while Day 2 held steady, suggesting that people might have been holding off for better deals or making more strategic purchases. Interestingly, though, the average transaction value went up by 2.3%, according to the Facteus data. So, while fewer people were shopping overall, those who did hit the “buy” button were spending more per purchase. This points to a focus on fewer but higher-value items rather than an overall surge in consumer enthusiasm.
One of the most telling stories of Prime Day 2024 is how different age groups approached the sales event:
- Baby Boomers: Boomers continued to be the most resilient demographic, showing a decrease of only 1.3% in spending compared to last year. Their relatively stable participation suggests that they remain a dependable group for Amazon, even in a tightening economy.
- Gen X: Spending by Gen X declined by 4.4%, indicating a bit more caution compared to Baby Boomers. Given that this group often has multiple financial responsibilities (mortgages, education costs, etc.), they may be feeling the economic pinch more acutely than others.
- Millennials: This critical demographic saw the steepest decline, with a 15.8% reduction in spending compared to 2023. Similar to trends observed in July’s Prime Day, Millennials seem to be cutting back the most. This reinforces concerns about their financial stability amidst rising living costs and inflation.
- Gen Z: Spending by Gen Z rose by 1.3%, albeit from a lower baseline. This group is starting to enter the workforce and take part in major sales events, but their overall contribution to Prime Day totals remains modest.
So what could this mean? Despite an increase in average transaction values, the overall dip in spending indicates caution. Consumers are becoming more deliberate, possibly waiting for significant discounts or prioritizing needs over wants.
According to Facteus, there’s a growing focus on essentials, with shoppers targeting lower-ticket items like kitchenware and linens instead of luxury goods. Millennials’ reduced spending on Prime Day reflects broader economic concerns, while Boomers’ steadier participation suggests they may remain a core focus for Amazon’s strategy in turbulent economic times.
Prime Day October 2024 paints a picture of a marketplace in transition. While the slight drop in overall spending might seem discouraging at first glance, the rise in average transaction value and the steady participation from Baby Boomers suggest that Amazon’s core audience remains engaged. This signals a shift in shopping behavior, with consumers focusing on value over volume. For Amazon and its competitors, these trends offer key insights to refine their strategies for the holiday season, ensuring they’re aligned with changing consumer expectations amid ongoing economic uncertainty.
Spencer Hulse is the Editorial Director at Grit Daily. He is responsible for overseeing other editors and writers, day-to-day operations, and covering breaking news.
