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Can Competitors Ride High on Amazon's Prime Day Wave?

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Come Jul 16 and Amazon.com, Inc.’s (AMZN - Free Report) Prime Day begins. Naturally, much like millions of shoppers, the e-commerce giant too will be waiting with bated breath for the shopping extravaganza to start. After all, Prime Day means a lot to Amazon. However, it’s not only Amazon that makes a lot from Prime Day. Amazon in a way is also helping its rivals like Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) , eBay, Inc. (EBAY - Free Report) and Macy’s, Inc. (M - Free Report) to cash in on this opportunity.

From brick-and-mortar stores to e-commerce companies, Amazon’s rivals are trying to make the most of Prime Day with a host of offers. Amazon, which has changed the entire retail landscape in the last few years, is once again proving to be a big influencer in driving retail sales.

Amazon Shows the Way

Launched in 2015, Prime Day has proved to be Amazon’s biggest money churning machine. And the e-commerce giant isn’t leaving any stone unturned to reach out to more shoppers this time too. In doing so, it has extended Prime Day to a 36-hour online deal, including offers at Whole Foods, expansion to four new countries and surprise events in five cities.

Understandably, extending Prime Day by six hours is in a move to attract more customers. This certainly will boost Amazon’s sales, as Prime members will have the option to choose form as much as one million items this time.

The company expects Prime Day to generate $3.4 billion in sales worldwide compared with $2.4 billion in 2017. In fact, so successful was Prime Day last year that it even outpaced Black Friday and Cyber Monday. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amazon had started Prime Day as a bulk clearance sale but its success turned it into a global shopping event. This certainly has changed the way people have so long shopped. Today, shoppers eagerly wait for Prime Day.

Prime Day Helps Amazon’s Rivals

Amazon has changed the entire retail ballgame in the last few years. This has made its rivals change focus toward online retail. Prime Day, on the other hand, has emerged as one of the most attractive shopping extravaganzas in its event calendar. However, in turning Prime Day into a mega shopping affair, Amazon in a way is helping its rivals.

From brick-and-mortar giants to e-commerce companies, today everyone is offering discounts around Prime Day. One of the major beneficiaries is Amazon’s closest rival Walmart, which is offering its new customers a discount of $10 on about three different orders using the code, "WALMART3" on pickups of $50 or higher till Jul 31. Moreover, Walmart will also be giving 3% cash back to credit card holders for any grocery pickup service from its stores.

Also, Target has entered into a partnership with membership-based grocery service provider, Shipt, for same-day delivery. Similarly, eBay too will be coming up with a wide range of deals starting Jul 16.

It goes without saying that Amazon’s rivals are fast trying to catch up. Prime Day has certainly proved to be one of the biggest events for Amazon. So has it for the likes of Walmart, Target and eBay, which are trying to lure more customers with similar deals and discounts. Moreover, Amazon’s competitors also have a certain advantage, as Prime Day can be enjoyed only by Prime members, while most of its rivals are keeping their offers open to everyone.

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