Retailers log $7.9 billion in online sales in first 24 hours of Prime Day

In a remarkable start to Amazon's annual Prime Day event, online sales in the U.S. surged by 9.9% year-over-year, reaching an impressive $7.9 billion on the first day alone, according to Adobe Analytics. This figure marks the highest e-commerce sales day recorded this year, surpassing last year's Thanksgiving total of $6.1 billion. The Prime Day sales frenzy, which began on Tuesday and will continue through Friday, was initially launched in 2015 to attract new Prime members. In response to Amazon's promotional strategies, other major retailers have rolled out their own competing sales. Walmart kicked off a six-day deals event on the same day, while Target initiated Circle Week on Sunday, and Best Buy launched its Black Friday in July promotions on Monday. Kashif Zafar, CEO of advertising platform Xnurta, noted a strong demand for home and outdoor goods during the opening day of Prime Day. However, traditional favorites such as beauty products and household essentials experienced a slower start, although he suggested that these categories could gain momentum as the event progresses. "While initial Prime Day figures may seem modest compared to last year's surge, it's premature to label this event a disappointment," Zafar commented in an email. "With four days instead of two, consumer purchasing patterns are evolving." Adobe projects that total online sales across all retailers will soar to $23.8 billion during the 96-hour shopping event, equating to the sales seen on two Black Fridays. In the previous year's 48-hour Prime Day, U.S. shoppers spent around $14.2 billion. This year's Prime Day is unfolding amidst a climate of uncertainty for both retailers and consumers, with ongoing concerns about the implications of President Donald Trump's fluctuating tariff policies. Following a brief improvement in May, U.S. consumer confidence dipped in June as worries about the tariffs' effects on the economy and prices resurfaced, as reported by the Conference Board. Despite these concerns, Amazon CEO Andy Jassy assured that there has not been a significant rise in prices on their platform due to tariffs. However, some third-party sellers have indicated they may need to increase prices on goods manufactured in China due to the financial strain of tariffs.