Business

Amazon Prime Day Deals Are Almost Here. Should You Take Advantage Of Them?

Published

4 months ago

2024-07-14

Kiara Grace

Amazon | AP news Image

NEW YORK — It’s summer, and the deals appear easy at an era when many consumer costs are high.

Since Amazon’s inaugural Prime Day in 2015, July sales events have emerged as a seasonal revenue generator for the retailer. While customers may be lured by claimed can’t-miss bargains on some products, personal finance experts warn against falling for possibly misleading marketing or succumbing to impulse purchases.

Amazon has raised anticipation in recent weeks for its tenth Prime Day event, which will take place on Tuesday and Wednesday. This event is only open to consumers who pay $14.99 per month or $139 per year to enjoy free shipping and other benefits as Prime members.

Rival merchants have previously attempted to capitalize on the Prime Day frenzy by providing deals over two days. This year, Walmart, Target, Kohl’s, and newcomers TikTok Shop and Temu launched summer sales ahead of Amazon, seeking to steal some of the e-commerce giant’s bargain-hunting customers. Meanwhile, Macy’s will launch its “best summer deals” during an eight-day discount campaign starting on Tuesday.

Amazon Prime Day Deals Are Almost Here. Should You Take Advantage Of Them?

Why are companies offering such large summer discounts?
July sales help merchants attract customers who want to jump on back-to-school shopping, the industry’s second-most crucial shopping season after the winter holiday. The markdowns also attract discretionary spending from buyers eyeing technology, household products, and seasonal items like a bikini or a new summer dress.

According to Coresight Research’s head of global research, John Mercer, discounts can help shops battle “a summer lull in retail spending” as consumers transfer their spending to summer holidays and services, such as dining out.

“It drives a bit of excitement in that mid-year period,” when shops might otherwise struggle to generate additional money, Mercer said. He said that businesses have also used discounts to stimulate consumer spending throughout the recent time of high inflation and interest rates.

Amazon does not disclose how much revenue it generates from Prime Day, but it does provide some clues of its performance. According to the firm, last year’s event was the “single largest sales day” in its history, with buyers purchasing over 375 million things.

According to Emarketer, Amazon’s global Prime Day sales will reach $12.5 billion by 2023. The company expects sales to increase by about 7% this year.

Are the offer prices truly bargains or something else?
It depends on whoever you ask.

Retailers overstate their promos to attract customers. However, the New York Times-owned product review website Wirecutter wrote this month that most of Amazon’s early discounts this year “stink.”

Kirthi Kalyanam, a Santa Clara University management professor preparing a book about Amazon, says Prime Day deals have historically been fantastic. According to Halyanam, the company was able to secure discounts from well-known brands like Apple and persuade third-party vendors to decrease their pricing by promising to feature them prominently on the Amandon website.

However, Prime Day discounts may be less relevant as shoppers acclimate to the ultra-cheap products supplied by Amazon competitors Shein and Temu, founded in China.

“Many of (the) deals may not be as competitive compared to Temu and Shien,” said Kalyanam.

At the same time, he stated that competing stores will most certainly look at Amazon’s prices and attempt to match them overnight. Last week, he reported that Best Buy discounted two products after Amazon announced some of its early bargains.

Numerator, a consumer research company, said that most of the approximately 5,000 Prime Day buyers it surveyed following last year’s event received product discounts of up to 40%. According to survey respondents, one-quarter of items were selling at a discount of 60% or more.

Some buying gurus have claimed that previous Prime discounts were smaller than they appeared.

What are some strategies for finding bargains and sticking to a budget?
If you’re on a tight budget, personal finance experts advise you to think twice before you buy.

“Avoid the false sense of urgency of manufactured holidays,” says Mark Elliot, chief customer officer at financial services startup LendingClub. “The idea that ‘The more you spend, the more you save’ — that’s just definitionally not true.”

According to Dan Egan, a vice president at Betterment, a financial advice and investing firm, buyers should compile a list of what they need before the deals begin so that they may make conscious purchases. He advises customers to avoid purchasing late at night or out of boredom.

“Once you have a list, it’s less likely you’ll get distracted by things you don’t need,” Egan told me. “If that list contains almost nothing, I would recommend deleting the (retailers’) apps from your phone for the next week or two. Or you’ll get a lot of notifications.”

He said any consumer who already has a credit card balance should be aware that the interest spent on that balance may cancel out any perceived savings from a summer sale purchase.

“A deal is not a deal if you have to pay interest on it,” according to Egan.

While it may make sense for shoppers to try out free or temporary memberships to qualify for the best deals during the summer sales, according to Erin Witte, the Consumer Federation of America’s director of consumer protection, those programs usually charge a fee to the customer’s credit card on file after a short period of time.

Amazon Prime Day Deals Are Almost Here. Should You Take Advantage Of Them?

“Set a calendar reminder to cancel if you don’t want to proceed with that subscription,” Witte told me. Think about it from the beginning. Remember that these corporations designed this product to make it simple to sign up but more difficult to cancel.”

Consumer Reports also provides some tips: Download Amazon’s app, sign up for invite-only discounts available to a few buyers, and get in the queue for limited-time specials that have already sold out.

Remember to browse around.
Filling up an online Amazon cart appeals to Prime members because they are paying for Prime Day specials. However, comparing costs from multiple websites before buying is always a good idea.

Unlike Prime Day, Walmart’s monthly discount event was available to anyone. However, the business sweetened the bargain for Walmart+ members by giving them early access.

Target only gave discounts to Target Circle members and utilized the weeklong event to promote a new membership program aimed at increasing sales and traffic.

TikTok Shop, the e-commerce arm of the famous video-sharing app, has made its summer sales event available to everyone. The event began on July 9 and continues till Wednesday.

SOURCE | AP

Kiara Grace

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Business

Subsidies for Electric Vehicles Cut as Consumer Interest Fades

Published

4 days ago

2024-11-04

Geoff Thomas

Electric vehicles (EVs) are still considerably more expensive than traditional alternatives.

Pressure is building on Canada’s electric vehicle manufacturers, and several are rethinking their stance on E.V.s in favor of plug-in hybrids. Automobile manufacturers are now bracing themselves for an even more challenging era in the Canadian market for electric vehicles (E.V.s).

President Kristian Aquilina of General Motors Canada claims that support and expectations are misaligned because the Canadian government is reducing subsidies for electric vehicles while trying to phase out gas-powered cars.

Manufacturers find pushing for an all-electric future in Canada increasingly difficult due to fewer consumer financial incentives and increasingly strict sales targets.

With subsidies totaling up to C$12,000 (about $8,500), Canadian consumers may save a tonne of money on electric automobiles. The federal government offers a rebate of up to $5,000 Canadian, and the provinces of Quebec and British Columbia provide further incentives of up to $7,000 and $4,000, respectively.

Ford lost about 2,000 US for every EV it sold in the first three months of the year.

Ford lost about $132,000 US for every E.V. it sold in the first three months of the year.

Ontario, which eliminated rebates in 2018, had the lowest market share for electric vehicles compared to Quebec and British Columbia, two regions that offered bigger incentives and thereby drove E.V. adoption in Canada.

Although this backing is dwindling, the province of Quebec has now declared that all subsidies will end in 2027. In June, the British Columbia government restricted incentives to a smaller subset of E.V. purchasers for “available funding” and higher-than-expected E.V. sales growth.

These reductions indicate a larger pattern: provincial governments reevaluate the sustainability of taxpayer-financed incentives for E.V.s as budget deficits widen.

With lofty goals to cut pollution from gas-powered cars and increase sales of electric vehicles, the Canadian government has reduced subsidies for these vehicles. Electric or plug-in hybrid vehicles will be mandatory for all new light-duty vehicle sales in Canada by 2035.

B.C. needs to step up with incentives for consumers to buy used EVs, some opposition critics say.

Some opposition critics say that B.C. needs to step up with incentives for consumers to buy used E.V.s.

To meet our intermediate goals, 20% of new sales must be electric vehicles (E.V.s) by 2026 and 60% by 2030. Car companies are already under a lot of pressure due to dwindling incentives and increasing demands, and the clock is ticking faster by the second.

In addition, these rules impose new forms of responsibility. Automakers that do not reach their provincial sales targets may be subject to financial fines imposed by provinces such as British Columbia.

Canadian manufacturers are already under financial pressure from federal compliance credit system standards, which they must meet or face deficits. This system gives them credit for electric vehicle sales and infrastructure improvements, but it’s not without its challenges.

“The timing is not necessarily lining up very well, in that the purchase incentive support comes off just as mandates and regulations start to bite,” GMC Canada President Kristian Aquilina told Bloomberg. “It must make a difference.

Therefore, we must consider that. Despite the cutbacks, Aquilina argued that the government’s investment in enhancing the charging infrastructure could benefit E.V. sales.

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Tesla Sales Fall Again As More Automakers Crowd Electric Vehicle Market

Geoff Thomas

Geoffrey Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Business

Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Published

1 week ago

2024-10-30

Kiara Grace

Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.

According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.

Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.

Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.

SOURCE | AP

Kiara Grace

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Business

Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee

Published

1 week ago

2024-10-30

Geoff Thomas

Catherine Tait won't rule out taking bonus once she leaves CBC/Radio-Canada

Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.

The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.

Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.

MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.

Catherine Tait Exit Package

Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.

She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.

Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.

He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.

“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.

The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.

Defunding CBC News Canada

The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.

“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.

“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”

During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.

She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”

If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.

Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.