Next week, Amazon.com Inc. will look to affirm its dominance over the e-commerce landscape with its latest Prime Day discount festival. However, its would-be rivals are not going down without a fight.
Source: Associated Press
Much like Black Friday, what began as a one-day spectacle has morphed into a prolonged retail race to the bottom. Prime "Day" will in fact run July 15-16 — though the company has been touting pre-Prime Day deals weeks in advance.
In response, Walmart Inc. will run its own sales event from July 14-17. Target Corp.'s "Deals Day" will run concurrently with Prime Day. As part of a three-week series of sales, eBay Inc. says it will host a "Crash Sale" on July 15, a nod to Amazon's website possibly crashing that day, as has happened during previous Prime Days.
The new mid-July discount frenzy presents Amazon's challengers with a conundrum. If they sit on the sidelines, they risk falling even further behind in terms of e-commerce market share. But trying to keep up with Amazon, which has a wealth of logistical experience and a greater capacity to absorb any losses incurred by deep discounting, could make a serious dent in profits already under immense pressure.
"Amazon can keep pushing this and Walmart and Target may feel like they're forced to follow, but it's not really sustainable to keep upping the ante," said Steve Dennis, president and founder of SageBerry Consulting. "It's great for consumers but it's not good for margins."
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