Amazon Prime Day Kicks Off With Disappointing Early Sales

U.S. consumer health remains a mixed picture. Goldman Sachs sees signs of cautious optimism, while UBS highlights a rebound in confidence among low-income households. Still, stubborn inflation and high interest rates persist, casting a dark cloud over long-term outlooks.

New data from Momentum Commerce offers an early snapshot of Amazon’s Prime Day performance, with sales down 14% in the first four hours compared to the same period last year, according to Bloomberg. It’s not the kind of number investors were hoping to see as a high-frequency snapshot of midsummer consumer sentiment, and it may signal deeper caution among shoppers. 

Momentum Commerce, which manages $7 billion in Amazon sales across brands like Crocs and Beats, provides uniquely valuable data often viewed as a barometer of consumer sentiment and the broader U.S. economic outlook. Investors appeared to take the report negatively, with Amazon shares down 1.5% in early afternoon trading in New York. 

Bloomberg noted weaknesses could be attributed to:

• Prime Day expanded from 2 to 4 days this year, complicating year-over-year comparisons.

• Consumers may be waiting for deeper discounts. 

• Tariffs imposed by the Trump administration are discouraging deep sales from sellers, unable to capture sales from value-seeking consumers. 

Other observations of the sale:

• Amazon’s own devices, like Echo, saw fewer discounts this year.

• Essentials, not tech, are driving competition, with deep discounts on groceries rather than electronics. So, back to basics.

• Apple offered standout deals, including AirPods 4 at $89, cheaper than last Black Friday.

Ah, yes, the usual malarkey from Amazon sellers… 

Can’t wait for Amazon Prime Day tomorrow pic.twitter.com/vBSeH2sCVy

— Orlando (@thisisorlando) July 8, 2025

What are you buying on Prime Day? pic.twitter.com/zj5B7iyIDf

— Beth Dutton (@1BethDutton) July 8, 2025

Consumers aren’t rushing to panic-buy junk from China on the e-commerce platform. While multiple factors may be at play, one undeniable reality remains: as we’ve noted repeatedly, the consumer is still under pressure.