Amazon is preparing to extend its annual Prime Day shopping event in 2025, potentially transforming the traditional two-day sale into a four-day shopping extravaganza. This year will celebrate the 10th anniversary of Prime Day, a significant milestone for the e-commerce giant.

Background on Prime Day

According to reports, the Amazon Services team communicated to independent sellers, who contribute to over half of Amazon’s revenue, that the two-day timeframe of Prime Day was insufficient. The extended duration is aimed at maximizing revenues in a challenging economic landscape.

Market Forces Driving Change

Arun Sundram, a senior equity analyst at CFRA Research, suggests that extending Prime Day is a logical strategy given the competitive retail environment. With ongoing economic uncertainties, such as inflation and tariff concerns, a longer sale could significantly boost customer engagement.

Sundram commented, “With an uncertain macro environment and consumers seeking more deals amid tariff and inflation concerns, a longer event could drive stronger engagement.” Indeed, numerous competitors have begun to offer similar discounts during the summer, compelling Amazon to adapt.

Competitors and Comparisons

Amazon’s competitors, including Walmart and Target, are already launching extended sales events that challenge the traditional Prime Day schedule. Target Circle Week spans seven days, while Walmart Deals lasted four days last year, reflecting a broader trend of retailers seeking to attract price-conscious shoppers.

Impact of Previous Events

In 2024, Prime Day resulted in $14.2 billion in sales across various online retailers, signifying an 11.8% increase from the previous year, according to Adobe Analytics. This data highlights the event’s substantial influence within the retail sector.

Since its inception in 2015, Prime Day has always been structured as a two-day event. In lieu of prolonging this summer sales event, Amazon has traditionally introduced another shopping occasion called Prime Big Deal Days ahead of the holiday season.

Benefits for Prime Members

Prime Day is one of the key perks available to Amazon Prime members, who pay an annual fee of $139 (or $14.99 per month) for benefits such as free shipping and access to exclusive discounts. This value proposition continues to attract subscribers to the service.

As an indicator of its financial health, Amazon reported $638 billion in net sales for 2024, marking a nearly 11% increase over the previous year, with net income reaching $59.2 billion and a market capitalization of around $2.1 trillion.