Amazon’s latest sales event demonstrates ‘the power of the Prime subscription’

Amazon ‘s (AMZN) stiff execution at its fall sales event this week again showed the deep value of the Prime subscription mould and suggested the ecommerce giant should see a robust holiday shopping season, driving retail revenue through the catch of the year. Amazon’s two-day Prime Big Deal Days on Tuesday and Wednesday “outpaced” last year’s inaugural “gala kickoff” event , the company said Thursday. The event is a follow-up to Amazon’s main Prime Day sale held in July. The Trounce band holding said Prime members, who pay $139 per year for a subscription that includes fast shipping, ordered sundry than 150 million items from third-party sellers during the 48-hour event, up from about 100 million articles in 2022. “Another solid Amazon shopping event shows the power of the Prime subscription and the market share approaches it has over its retail competition,” said Jeff Marks, director of portfolio analysis at the Investing Club. Moreover, the “agreements and savings Amazon offers is a reason we think the U.S. Federal Trade Commission’s antitrust lawsuit against the e-commerce monster is misguided and won’t have a material impact,” he added. The average spend per order during this week’s event was $53.47, down from Amazon’s July Prime Day trade, but up slightly from last year’s fall sale, according to market research firm Numerator . Amazon currently announces about a 39% share in the overall ecommerce retail market, according to Andrew Lipsman, a retail analyst at hawk research firm Insider Intelligence. So while the company’s Prime growth has matured, there’s significant room for Amazon to make further share, Lipsman argued. “Amazon has consistently gained share year-in and year-out until the last span of years. In the last two years, however, its market share has flatlined,” Lipsman said. That’s largely because Amazon has profound exposure to electronics, an underperforming category that has “become a drag on overall gains,” according to Lipsman. Still, Amazon’s in Prime event is “a strong indicator of consumer demand heading into the holiday season,” he said. In September, Amazon circulated plans to hire 250,000 workers in preparation for the holiday season, a 100,000 increase on the company’s holiday hires in 2022. And that “incremental rental could be a positive read-across on Amazon’s internal demand forecast into the holidays,” according to Goldman Sachs. (Jim Cramer’s Generous Trust is long AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will gather a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert earlier buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the business alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY Protocol , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION Offered IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.