For those unaware, yesterday was Amazon’s annual Prime Day, a one day event where consumers can receive deals on items sold from small businesses operating within the platform. The concept of Prime Day was created in 2015 to increase sales during the slowest shopping season of the year. While meant to moderately boost the summer sales period, Amazon has claimed that Prime Day has helped create 900,000 additional jobs in the countries that support Prime Day as well as helping to sell 40 million items in 2017 alone.
With half of the items purchased going to small and medium businesses (according to Amazon’s Small Business Impact Report), the company has stated that their 2017 summer focused Prime Day helped “more than 20,000 small and medium sized businesses exceeding the $1 million sales mark in 2017. In addition to providing the platform, Amazon also made more than $1 billions in loans to U.S-based small and medium sized businesses through the Amazon Lending Program.”
The company has stated that “thousands of small and medium-sized businesses have reported more than $50,000 in sales” Nicholas Denissen, Vice President of Marketplace Business for Amazon, explained the new phenomenon known has Prime Day by stating, “Prime Day helps SMBs reach more than 100 million paid Prime members around the world and provides an opportunity for the smallest of businesses to sell right alongside the biggest household brands.”
While the cost is said to increase this year to $750 from $500, if sales can increase by large amounts as the company claims, the additional $250 is pennies on the dollar for small and medium businesses.