Amazon is celebrating its 20th birthday with the introduction of Prime Day. For one day only Amazon Prime members will be able to exclusively shop thousands of “Lightning Deals”, as well as seven exclusive “Deals of the Day”.
Vice President of Amazon Prime, Greg Greeley, said the day will be “filled with more deals than Black Friday” for Prime members in the UK, US, Spain, Japan, Italy, Germany, France, Canada, and Austria.
As well as a celebratory event, Prime Day is also a tactic to incentivise customers to become Prime members. Not only is Amazon set to gain from additional annual membership fees, but from the fact that, according to Consumer Intelligence Research Partners, Prime members spend more than double that of non-members.
Following the announcement of Prime Day, numerous retailers launched their own stunts and sales; Argos is currently promoting a three day sale, while Currys has opted to run a 30 hour flash sale in an attempt to disrupt Amazon’s dominance.
Deals of the day
Three of the seven Deals of the Day are on Amazon’s own products; the Kindle, Kindle Fire HD 7 and the Fire TV stick.
Tablets and Notebooks
The first product listed on the Deals of the Day is the 10.1 inch Lenovo Flex Notebook – discounted by 54 percent for Prime members, but also by £100 to £179.99 for non-prime members.
Argos and Very have both reduced the price of the Lenovo Notebook to their lowest ever prices at £179.99 and £179.00 respectively.
Although Very has the lowest price customers have to pay £3.99 delivery, therefore shoppers will get a better deal either collecting the product in-store at Argos or via Amazon, taking advantage of its free delivery.
Bose QuietComfort 20 in-ear headphones are currently reduced as part of the Prime Day promotions from £259.95 to £129.95. Unlike the Lenovo tablet, there is no price reduction for non-Prime members.
Currys and John Lewis are both selling the headphones for £259.95, therefore non-prime members will benefit from purchasing a prime subscription, still netting them a saving of £51.
Another Deal of the Day is on the 1TB Xbox One bundle, promoted at £329. Few other retailers sell this version, with the 500GB bundle more popularly stocked. Argos is one the few retailers that do offer the 1TB version, retailing at £349.99 for the console alone, without the bundle.
For the majority of casual gamers 500GB of memory will suffice. The Xbox One 500GB Halo bundle plus a wireless controller costs £324.98 when purchased from Smyths Toys – £4.02 less than the Amazon deal for the 1TB bundle. Savvy shoppers can save further by building the bundle themselves, and purchasing the extra controller from another retailer, such as Argos, where it’s cheaper.
Similarly, the Playstation bundle promoted by Amazon at £329 is not stocked by other retailers – this is predominantly because the game Destiny has been out for ten months. Competitor stores’ bundles include newer games such as Batman Arkham Knight, which tend to be more expensive, although Amazon exclusively offer Playstation TV in its bundle.
Smyths Toys has challenged Amazon directly with a bundle of its own which costs £10 more at £339.99, but offers the shopper the choice of FIFA 15 or Destiny.
Will Amazon Prime subscriptions soar?
Prime Day will lead to an increase in Prime members, although it is possible that some shoppers will sign up for the free subscription and cancel their membership before the 30 day trial is over.
Some of the savings offered today are not enough to cover the one off £79 Prime fee. Furthermore, some competitor retailers are offering comparable or cheaper offers without the need to consider an annual subscription fee. Amazon will be hoping that the additional benefits its membership offers, such as Prime Instant Video, free next delivery and early Kindle book releases, will entice people to sign up.
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