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President and founder of Nicholas Wealth Management David Nicholas says the U.S. consumer is ‘singlehandedly carrying the global economy on its back’ in spite of inflation on ‘Varney & Co.’
Shoppers are expected to spend a record $14 billion during this year’s Prime Day, Amazon’s two-day sales event.
Adobe Analytics, which analyzes over 1 trillion commerce transactions online, projected that the first day of the event will drive $7.1 billion in online spending, up 11.3% year over year. The second day is expected to bring in $6.9 billion online, up 9.2% year over year.
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Amazon Prime delivery person in van sorting packages, Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Buy now, pay later (BNPL) services continue to drive some of the spending as it provides shoppers more flexible ways to manage expenses, especially during times when households are spending more on everyday necessities.
These services have driven more than $39 billion in online spending between Jan. 1 and June 30. That’s up 12% year over year, according to Adobe.
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Adobe projected that there will be a “substantial uptick” in this BNPL usage over the next two days, driving between $1.09 billion and $1.11 billion in online spending in total.
Packages on a conveyer belt at an Amazon fulfillment center on Prime Day in Melville, New York, on July 11, 2023. (Photographer: Johnny Milano/Bloomberg via Getty Images / Getty Images)
Spending online has already surpassed $500 billion in the first six months of the year, up 7.4% year over year, according to Adobe data.
Between July 1 and Sept. 30, Adobe projected that consumers will collectively spend $229.1 billion online, representing a 7.2% year-over-year growth.
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Adobe credited the net new demand for driving the strong consumer spending rather than higher prices.
Online prices have fallen for 22 consecutive months and were down 4.2% year over year in June.
Adobe does not adjust for inflation. However, it noted that if online inflation were factored in, the consumer spending figure would be even higher.
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