UAE's Amazon Prime Day sales expected to double this year

Sales through the UAE’s Amazon Prime Day are expected to double this year as budget-conscious shoppers tap into steep discounts on offer across all retail categories on the platform, according to analyze firm Redseer.

The country's sales through the two-day shopping event are forecast to rise 100 per cent a lot more than last year’s Prime Day, the India-based consultancy said in a newsletter.

Amazon Prime Day, offered and then members of the American e-commerce site, is typically held in June in the UAE to improve sales through the platform.

"Happening for the third amount of time in UAE, Prime Day in the UAE will seemingly be larger," Redseer said. "UAE individuals are blessed with high competition and high discounts."

Online shopping gained momentum after governments all over the world introduced movement restrictions to avoid the spread of the Covid-19 pandemic. E-commerce sales are set to triple in the Middle East and North Africa region to $28.5 billion in 2022, from $8.3bn in 2017, according to analyze from Bain & Company and Google.

Shoppers who are Prime members in the UAE can tap into steep discounts when the sale launches at nighttime GST on June 21, running through to June 22. Deals will be available across every category on the e-commerce site, including electronics, fashion, home, beauty and kitchen.

Some 63 % of UAE consumers are mainly utilizing their Prime membership to access the discounts exclusively open to them on Prime Day, Redseer said.

The UAE's sales forecast on Amazon Prime Day beats projections for other countries, the consultancy said. Compared, the US is likely to record simply a 43 % year-on-year increase.

However, the UAE's Prime Day continues to be in the "emerging phase" weighed against older sales levels in other countries, in line with the consultancy.

UAE Prime Day sales are 140 per cent higher than ordinary days. In comparison, the US records a 250 % increase during the mega-shopping event compared to an ordinary day.

"The UAE market is nascent compared to other Prime countries because of [its] small Prime user base," Redseer said. "In coming years, we expect that the UAE will observe the growth trajectory witnessed in US and the Prime Day sales growth will are as long as 250 % from ordinary days."

The Prime user base contains 200 million people, of which 70 % are in the US.

The most used products during the upcoming UAE Prime Day sale are expected to be electronics. However, the category is expected to see a 10 % decline this year as shoppers look for sales in other categories, Redseer said.

Categories where UAE Prime users spent the most in 2020

Electronics accessories
Clothes
Home care item