Under the impact of tariffs, the "American version of 618" started off weak, with sales in the first four hours down 14% year-on-year.

Amazon Prime Day kicked off with a weak start, with sales in the first four hours down nearly 14% from the same period last year. The annual sales event of the world's largest e-commerce platform is facing dual challenges of slowing consumer purchasing power and tariff impact. According to Momentum Commerce, an e-commerce service provider managing 50 brands with an annual sales revenue of approximately $7 billion, this year's Prime Day sales performance in the first four hours was significantly below expectations. The company provides Amazon sales management services for well-known brands such as Crocs, Beats, and Therabody, and its large sample size provides important reference for evaluating Prime Day performance. Following this news, Amazon's stock fell 1.8% in pre-market trading. Investors and analysts are closely watching the performance of this shopping festival as an important indicator of the strength of the U.S. economy and consumer confidence. It is worth noting that this year's Prime Day event has been extended from two days to four days, making year-over-year data comparisons more complex, but also providing Amazon with more space to alleviate sales pressure and maintain overall performance. Under the impact of tariffs and consumer downgrades, the expansion of the event cannot conceal its weak start This year's Prime Day started in July and lasted for four days, doubling the length of the event from 2024. Although the extended time frame may distribute peak sales and affect the comparability of year-over-year data, the performance in the first few hours is still considered a key indicator of the overall success of the event. According to historical data from Momentum Commerce, peak sales on Prime Day in 2024 occurred in the morning and evening of the first day, as well as the evening of the next day. This year's four-day event schedule is expected to further distribute sales, but whether this strategy can compensate for the weak early sales performance remains to be seen. This year's Prime Day is facing a more complex external environment. Trump's tariff policies have raised the prices of imported goods, causing some sellers to choose to withdraw from promotional activities. Jed Ellerbroek, portfolio manager at Argent Capital, stated: "Amazon may be the most affected by tariffs among large tech companies, and these tariffs have once again become a focus this week." According to Kristin McGrath, senior editor at The Krazy Coupon Lady, Apple is offering the largest discounts on electronic products, including the AirPods 4 wireless headphones priced at $89, even lower than last year's Black Friday prices. In contrast, discounts on Amazon's own products, such as the Echo smart speaker, are not significant. Consumer purchasing preferences are also changing. McGrath pointed out that competition in areas such as daily essentials like lunch snacks packaging is fierce, with retailers like Amazon, Walmart, and Target engaging in intense price wars in this area: "Stores are meeting consumers' discount demands on daily essentials rather than tech products." Market expectations and competitive landscape Adobe estimates that the total online sales for all retailers during the four-day event will reach $23.8 billion. Market research firm eMarketer estimates that online consumption in the United States will reach $17.2 billion, with Amazon accounting for 75% of the market share. Since its launch in 2015, Prime Day's main goal has been to attract new Prime members. Users need to pay an annual membership fee of $139 to enjoy benefits including shipping discounts and video streaming services. According to Consumer Intelligence Research Partners, as of March this year, the number of Prime members in the U.S. reached 196 million, a 9% year-on-year increase. Amazon did not immediately respond to requests for comment on the Momentum Commerce data. The company previously stated in a statement: "We are working with a wide variety of key sales partners in-store to support them in adapting to the changing environment while maintaining low prices and a wide selection for customers." Amazon is also facing fierce competition from other retailers with competing activities on the same day, including Walmart, Wayfair's "Four-Day Sale," and Target's "Circle Week." This article was reprinted from "Wall Street View" by Zhang Yaqi; GMTEight editor: Liu Jiayin.