Amazon's prime day crash: A lesson in scalability
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Louis van Roessel Louis van Roessel
Posted Jan 27, 2021 4 min read
Amazon's prime day crash: A lesson in scalability

This year, July 16th marked Amazon's third annual 'Christmas in July' sale: Prime Day. Amazon spent several weeks and $3.1 million promoting their 36-hour-long sale. Meanwhile, consumers prepared to snag the best deals, and competitors positioned themselves to take advantage of online spillover traffic and any weaknesses in Amazon's day-of execution. Not only were competitors able to do just that, but they've also boosted their competing business by launching rivaling limited-time-only promotions of their own.

Currently, Amazon alone controls the majority of online sales made on Prime Day. They've created a shopping frenzy and put themselves at the center of it. The sales data collected since the inception of Prime Day tells us as much:

Still, fellow giants like Walmart, Macy's and Target have fought to keep Amazon from completely monopolizing online sales on this day, by attempting to attract customers who are already online and looking to shop. Customers' bargain-hunting behavior makes this increasingly possible. In fact, 31% of online shoppers actively planned to comparison shop online with other retailers on Prime Day and another 32% considered doing so. This year, Amazon's shortcomings gave competitors an even bigger chance to take back some business.

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