Amazon.Com, Inc. (NASDAQ:AMZN) Kicks Off Holiday Deals Three Weeks In Advance


Amazon.com, Inc. (NASDAQ:AMZN) has started announcing holiday-themed deals, which will come more than three weeks before most retailers start their holiday promotional sales. The company launched a Black Friday Deals Store. The Black Friday deals from Amazon will initially benefit Prime members before they are widely rolled out to the rest of Amazon shoppers. Prime members will have access to the traditional Lightning Deals 30 minutes before everyone else. The move by Amazon to kick off holiday deals ahead of competition comes after Wal-Mart Stores, Inc. (NYSE:WMT) recently outlined plans to try to poach customers from Amazon and brick-and-mortar rivals through fancier store setups.

If the early bird catches the worm, Amazon.com, Inc. (NASDAQ:AMZN) is out to catch your holiday shopping dollars. The e-commerce gorilla is rolling out holiday-themed promotional offerings several weeks before the Thanksgiving weekend when most retailers officially press on their holiday deals buttons.

Amazon’s early holiday deals appear designed to slightly favor Prime members. The Amazon Prime membership costs $99 a year and subscribers benefit from free shipping services in a matter of a few days. Amazon’s holiday promotions also come with a model in which Prime members have a 30-minute exclusive access to deals before they are widely rolled out to other shoppers on the platform.

Early holiday shoppers in 2015

With its early holiday deals, Amazon isn’t merely making a blind bet. In its recent market research, NPD Group reported that 50% of holiday shoppers intend to start their shopping ahead of the Thanksgiving weekend. That signals a 6% increase from the number that expressed interest in early holiday shopping last year. Moreover, a significant number of the early holiday shoppers are expected to shop online. As such, Amazon’s early plunge into holiday deals seems supported by market intelligence.

Amazon’s holiday performance

Amazon.com, Inc. (NASDAQ:AMZN) is hoping that this year’s holiday season will follow the trend of last year’s festive season selling. Aggressive holiday promotions last year saw Amazon post 4Q2014 profit of $214 million on revenues of $29.3 billion, thus interrupting three consecutive quarters of losses.

Perhaps with its early holiday offerings, Amazon is also trying to mitigate the impact of equally lethal rivals such as Wal-Mart, which intends to woo holiday shoppers with fun-themed stores.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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