Prime Day, the annual sales event first launched by Amazon in the United States, is gaining traction in Australia, providing both consumers and retailers with a prominent opportunity to engage in deep discounts and increased retail activity. While the scale and intensity of Prime Day may not rival the US phenomenon, experts note a growing influence of the event domestically, as Australian shoppers seek to stretch their budgets amid persistent cost of living pressures.
John-David Klausner, General Manager International at Loop, observes that "Prime Day in Australia doesn't generate the same frenzy as it does in the US, but its influence is growing. With the cost of living still high, Aussies are actively hunting for ways to save, and Prime Day offers just that. But with retail turnover underperforming according to the latest ABS figures, sales may fall short of expectations this year." Klausner's view highlights the delicate balance between consumer enthusiasm for savings and the broader retail sector's struggle with lagging turnover.
For retailers utilising Amazon as a platform, Klausner suggests that Prime Day represents more than just a short-term sales uplift: "For retailers selling on Amazon, it's a strong opportunity to reach new customers. The real challenge is what happens after the sale. Since delivery and returns are largely handled by Amazon, the best way to boost retention is through brand experience." He encourages businesses to prioritise elements such as product packaging, inserts, follow-up emails, and digital engagement tools like QR codes to cultivate a direct relationship with customers and foster loyalty beyond Amazon's ecosystem.
Klausner also underlines potential strategies for retailers competing outside the Amazon marketplace. "It's not about matching the giant's scale but about playing smarter. Understand where your competitors are selling and position your offer accordingly. Whether that's through more personalised campaigns, a better returns policy, or even leaning into customer service as a point of difference, Prime Day can still be a win for smaller retailers who know their niche." His advice reflects the growing importance of differentiation and strategic positioning during high-profile sales periods.
The commentary from Shopfully Australia's Country Manager, Brendan Straw, reinforces many of these observations with additional data-driven insights. Straw notes, "With Prime Day heralding some of the season's most aggressive discounts - often slashing prices by 40-50% across major brands and categories - it's clear these sales events deliver immense value not just for consumers, but for retailers as well." Shopfully's research indicates that 56% of Australian consumers are now delaying significant purchases to coincide with such promotional sales events, underscoring the shift from impulse buying to intentional, planned spending.
Straw points out that in an inflationary climate, retail events like Prime Day have become integral to household budgeting strategies. "Financial pressure has shifted shopping habits from impulse to intent, with a growing reliance on planning, researching, and budgeting. For retailers, this presents a unique opportunity to engage a more purposeful shopper - one who is actively seeking out value."
According to Shopfully, Australians are increasingly informed shoppers, with 84% researching online before heading in-store, and 86% stating that discounts play a key role in their purchase decisions. The evidence signals that omnichannel engagement - across digital catalogues, marketplace listings, and targeted advertising - will be crucial for retailers aiming to reach consumers at every stage of their purchase journey.
Looking beyond Prime Day, Straw highlights the need for sustained digital presence and flexible timing as crucial elements in the crowded promotional calendar, as major sales dates approach in the latter half of the year. "Shopfully data shows 69% of consumers would participate in major sales if they were offered earlier in the season. Flexibility around when promotions drop, and offering pre-sale opportunities, can help businesses stay ahead of the competition and capture demand before it peaks."
The convergence of online and offline shopping behaviours is particularly notable. Shopfully found that 56% of consumers use both types of touchpoints to seek out deals. "An integrated, omnichannel strategy is no longer a nice-to-have; it's a retail imperative," Straw asserts, stressing the need for coordinated messaging and personalisation across all customer channels.
The consensus among experts is that while Prime Day's instant appeal lies in aggressive price reductions, the event's lasting impact will be determined by which brands can translate short-term surges into lasting customer relationships. Retailers able to adapt to increasingly intentional shopping patterns by offering value beyond mere price - and by maintaining consistent, high-quality experiences year-round - are set to set to thrive in Australia's evolving retail landscape.
