Sales during the UAE’s Amazon Prime Day are expected to double this year as budget-conscious shoppers tap into steep discounts being offered across all retail categories on the platform, according to research firm Redseer.
The country's sales during the two-day shopping event are forecast to rise 100 per cent more than last year’s Prime Day, the India-based consultancy said in a newsletter.
Amazon Prime Day, offered only to members of the American e-commerce site, is typically held in June in the UAE to boost sales through the platform.
"Happening for the third time in UAE, Prime Day in the UAE will seemingly be larger," Redseer said. "UAE consumers are blessed with high competition and high discounts."
Online shopping gained momentum after governments around the world introduced movement restrictions to stop the spread of the Covid-19 pandemic. E-commerce sales are set to triple in the Middle East and North Africa region to $28.5 billion in 2022, from $8.3bn in 2017, according to research from Bain & Company and Google.
Shoppers who are Prime members in the UAE will be able to tap into steep discounts when the sale launches at midnight GST on June 21, running through to June 22. Deals will be on offer across every category on the e-commerce site, including electronics, fashion, home, beauty and kitchen.
Some 63 per cent of UAE consumers are mainly using their Prime membership to get access to the discounts exclusively available to them on Prime Day, Redseer said.
The UAE's sales forecast on Amazon Prime Day beats projections for other countries, the consultancy said. In comparison, the US is expected to record just a 43 per cent year-on-year increase.
However, the UAE's Prime Day is still in the "emerging phase" compared with more mature sales levels in other countries, according to the consultancy.
UAE Prime Day sales are 140 per cent higher than ordinary days. By contrast, the US records a 250 per cent increase during the mega-shopping event compared to an ordinary day.
"The UAE market is nascent compared to other Prime countries because of [its] small Prime user base," Redseer said. "In coming years, we expect that the UAE will follow the growth trajectory witnessed in US and the Prime Day sales growth will reach up to 250 per cent from ordinary days."
The Prime user base consists of 200 million people, of which 70 per cent are in the US.
The most popular products during the upcoming UAE Prime Day sale are expected to be electronics. However, the category is expected to see a 10 per cent decline this year as shoppers look for sales in other categories, Redseer said.
Categories where UAE Prime users spent the most in 2020
- Electronics accessories
- Clothes
- Home care items
