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Impact Analytics Releases 2025 Amazon Prime Day Pricing Analysis

1. Amazon reduced promotional SKUs from 38% to 14% for Prime Day 2025. 2. Average discount depth increased by 8 percentage points compared to 2024. 3. Electronics category saw significant discounts, leading overall promotional strategy. 4. Amazon's focus shifted to margin-protective pricing amid economic pressures. 5. The approach indicates a trend towards smarter, data-driven promotional planning.

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FAQ

Why Bullish?

The shift to deeper discounts with fewer items may help enhance margins and encourage consumer spending in a competitive market. Historical precedents, such as increased stock prices following effective promotional strategies, support this outlook.

How important is it?

The article outlines strategic changes that directly affect Amazon's promotional approach, critical for investor sentiment and short-term market reactions.

Why Short Term?

Immediate market reactions may arise from the success of Prime Day 2025. However, long-term effects will depend on sustained consumer engagement and economic conditions.

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NEW YORK, July 09, 2025 (GLOBE NEWSWIRE) -- Impact Analytics, a leading AI-native platform for retail merchandising, planning and pricing optimization, has released its annual Prime Day Analysis, revealing a notable evolution in Amazon’s promotional playbook. Titled “Deeper Discounts, Fewer SKUs: How Amazon Got More with Less,” the report provides data-backed insights into how Amazon strategically reduced promotional breadth while deepening discount intensity to optimize margin and move inventory with intent. “This year, Amazon traded promotional volume for precision—fewer SKUs were discounted, but the discounts ran deeper,” said Prashant Agrawal, CEO and Founder of Impact Analytics. “It’s a clear signal to the market: retailers must get sharper, more surgical, and margin-aware in the way they approach promotions.” Key Findings from Prime Day 2025: Fewer SKUs, Deeper Discounts: Only 14% of SKUs were promoted, down from 38% in 2024—a 24-point drop in promotional breadth. However, average discount depth rose by 8 percentage points, indicating a shift to more intentional, high-impact promotions.Category Winners: Electronics led with 38% average discounts, while Pet Supplies and Tools & Home Improvement saw the largest increase in discount depth compared to pre-Prime Day period—+11 percentage points each.Smarter, Not Broader: Amazon’s approach focused on targeted, category-level decisions, aligning discounts with demand patterns, inventory objectives, and consumer urgency.Strategic Inventory Moves: The event reflected Amazon’s pivot toward margin-protective pricing amid macro pressures, including tariffs and cautious consumer sentiment. Impact Analytics analyzed the top 1,000 SKUs across 13 major categories, benchmarking promotional activity before and during Prime Day 2025, and comparing findings year-over-year. The report highlights how Amazon’s evolving approach reflects broader industry headwinds: tighter inventory planning, tariff uncertainty, and the rising importance of category-level precision. Every shift reflected category-specific factors like inventory risk, demand elasticity, and margin exposure. With economic pressure mounting and consumers becoming more value-conscious, Prime Day 2025 may signal a new chapter in retail pricing strategy. Retailers seeking to protect margin while maintaining competitiveness must adopt more intelligent, data-driven approaches to promotional planning. “Prime Day this year wasn’t about doing more—it was about doing better,” said Agrawal. “Retailers who approach pricing strategy with precision will reap bottom-line benefits.” Access the Report https://www.impactanalytics.co/e-books-and-reports/amazon-prime-day-report-2025 About Impact AnalyticsImpact Analytics delivers AI-native SaaS solutions and consulting services that help companies maximize profitability and customer satisfaction through deeper data insights and predictive analytics. With a fully integrated, end-to-end platform for planning, forecasting, merchandising, pricing and promotions, Impact Analytics empowers companies to make smarter decisions based on real-time insights, rather than relying on last year’s inputs to forecast and plan this year’s business. Powered by over one million machine learning models, Impact Analytics has been at the forefront of AI innovation for a decade, setting new benchmarks in forecasting, planning, and operational excellence across the retail, grocery, manufacturing, and CPG sectors. Recognized for innovation and growth by Fortune, Financial Times, Inc. 5000, and the RIS Leaderboard, Impact Analytics continues to lead the way in shaping the future of business intelligence. Think differently about AI and learn more at www.impactanalytics.co. Media ContactMaggie Williams DrydenVice President, Global Head of Marketingmaggie.dryden@impactanalytics.co

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