Modern Retail has a report today citing Amazon research from Bobsled that says brands are pulling back on Amazon Prime Day discounts this year owing to various factors, ranging from macroeconomic conditions to continued supply chain disruption. Here’s what Modern Retail is reporting:
“From a sample of 60 brands polled, 22% said they will be discounting less compared to last year, according to a June study by Bobsled Marketing published last week. These brands include ones for groceries, cosmetics, clothing, electronics, and baby products.”
Not surprisingly, it all boils down to margins:
Understandably, brands’ top worry this year is tighter profit margins, according to the Bobsled report cited above. “The problem in 2021 was getting inventory into warehouses but it’s all about margins this year,” said Masters.
If 1p and 3p brands are indeed pulling back, I believe Amazon might try to fill the void with heavier discounts/availability on its own brands, such as the Echo, Kindle, and Fire tablet.
As for the brands I sell on Amazon, we set up similar Prime discounts to what we offered last year, but on a smaller range of products.