Prime Day is set to generate $14 billion in online spend, Adobe says

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Amazon’s annual Prime Day is set to generate $14 billion in online spending this week, according to data from Adobe Analytics. This would mark a 10.5% increase from last year and set a new record for the two-day sales event.

The research firm said steeper discounts will drive the increase in spending, with electronics seeing some of the biggest markdowns from listed prices: 22%, compared to 14% last year.

Right behind electronics is apparel, with discounts of 20%, compared to 12% last year, and home/furniture with discounts of 17%, compared to 9% last year. Discounts on televisions, meanwhile, are set to nearly triple from 5% last year to 14% this year.

Back-to-school shopping is also set to bolster online spending during the event. Adobe said this prediction is based on an early surge in the category from July 1 through July 7. It also noted that this year’s event is taking place a week later than last year, pushing it closer to the school season.

Buy now, pay later (BNPL) services are also set to see greater adoption this year. The installment-based payment option has already generated $39.7 billion in online spend in the first half of 2024, up 12.1% year over year. Adobe forecasts BNPL will drive between $1.09 billion and $1.11 billion in online spend during the event, a 18.1% to 19.6% year over year jump.

The sales event comes amid a longer-term drop-off in online prices. According to the Adobe Digital Price Index, online prices across 18 categories have fallen 22 months in a row and were down 4.2% year over year in June.