GenAI Shopping Assistant: Prime Day Sales Surge

AI's Expanding Role in Amazon Prime Day Sales

A recent report suggests that artificial intelligence will have a significantly increased presence in the online shopping experience during Amazon’s Prime Day sale, which commenced Tuesday morning.

Amazon’s yearly sale event, extending over four days this year (July 8-11), is projected to generate $23.8 billion in online expenditure across U.S. e-commerce businesses.

Adobe's Insights into Online Commerce

Adobe, renowned for its e-commerce division’s regular estimations of online shopping events like Black Friday, provides valuable insights into online commerce through transaction tracking.

Their analysis is based on monitoring over 1 trillion visits to U.S. retail websites, encompassing 100 million SKUs across 18 distinct product categories.

Prime Day Growth and Forecasts

This year, Adobe anticipates that Prime Day will equate to the impact of “two Black Fridays.”

The projected $23.8 billion in spending over the four-day period represents a substantial 28.4% increase year-over-year, translating to $9.6 billion more than the corresponding timeframe last year.

The Influence of Mobile and Generative AI

Mobile shopping will continue to be a dominant force, expected to account for over half (52.5%) of all sales.

However, generative AI is also poised to make a notable impact this year.

Adobe estimates a 3,200% year-over-year surge in traffic originating from generative AI sources during the Prime Day event.

Growth of AI-Powered Shopping Tools

While currently a smaller contributor compared to channels like paid search and email, Adobe predicts continued growth in AI’s role as consumers recognize its value in the shopping process.

GenAI-powered chatbots and browsers experienced an initial surge in usage during the 2024 holiday season, with traffic from these sources increasing by 1,300% between November 1 and December 31, 2024.

Consumer Usage of Generative AI for Shopping

A survey of 5,000 U.S. consumers revealed various applications of GenAI in shopping:

• Research (55% of respondents)
• Product recommendations (47%)
• Deal discovery (43%)
• Gift ideas (35%)
• Finding unique products (35%)
• Creating shopping lists (33%)

Positive Consumer Experiences with AI

An impressive 92% of those who utilized GenAI reported an enhanced purchase experience.

Furthermore, 87% indicated a greater likelihood of employing AI for larger or more intricate purchases.

AI Integration by Leading Providers

AI providers are actively integrating AI into the shopping landscape, exemplified by Google’s Gemini-enhanced product search and OpenAI’s addition of shopping features to ChatGPT.

Prime Day Consumer Focus

Adobe’s forecast indicates that consumers during this Prime Day will prioritize discounts, with apparel offering the most significant savings.

Back-to-school shopping needs are also expected to be a key driver of sales this year.