Amazon's Prime Big Deal Days kick off holiday shopping season during economy uncertainty

Prime Day is back for the second time this year, providing for some Long Islanders a head start on the holiday shopping season in the midst of an uncertain economy.

The Oct. 7-8 Prime Big Deal Days event for Amazon Prime subscribers has been advertised as a way to score exclusive deals on products ahead of the holidays. But it falls at a fraught time for many U.S. consumers, with a federal shutdown underway, upward price pressure from tariffs and inflation, and an uncertain job market. 

"It's pretty clear that consumers are very unhappy with the level of prices of goods, and because of tariffs, are fearful that they're going to rise higher," said Scott Hoyt, senior director of consumer economics at Moody’s Analytics. Plus, the slow job growth has made it more difficult for people to pick up extra hours or a second job to finance holiday spending. 

That's led to mixed behavior from shoppers, he said, with some "pulling back on their spending to fortify their financial position in case prices go higher" while others are trying to buy "ahead of price increases."

Amazon acknowledged customer concerns about spending in an email, stating: "We know saving is important to our customers now more than ever, and we're excited to offer millions of deals and some of our best savings of the season across popular categories — from beauty and electronics to must-have gifts and seasonal essentials.

The country's economy has faced uncertainty since the start of the pandemic, said Stacey Finkelstein, marketing professor at Stony Brook University, but what's changing is that, especially with tariffs, it's becoming hard for consumers to predict "what prices are going to be and it makes it difficult for businesses to plan out investment."

That's causing increased price sensitivity among shoppers, she said, pointing out that while consumer spending remains strong, it's mostly driven by the wealthiest households. 

"My own students reported to me that they've essentially stopped buying treats. So if they go to the grocery store, they get the things that they know they need for breakfast, lunch and dinner, but little treats, like a coffee here and there, snacks, desserts, they're cutting out," she said. 

For Prime Day, that means customers might be thinking more strategically about their purchases and pushing holiday spending earlier, she said, adding: "One of the key drivers for consumers is the perceived value that they can get."

The semiannual sales event is a boon to Amazon as well, helping the company move "a high volume of products within a very predictable time frame" and encouraging customers to stockpile holiday gifts earlier, she said. 

Prime Day also presents an opportunity to draw more frugal-minded customers to Amazon, perhaps making regulars of people who would otherwise shop at competitors like Walmart or Target, said Stony Brook University marketing professor Margaret Echelbarger.

The limited time to purchase said deals adds a sense of "FOMO," or fear of missing out, for many shoppers, she said, adding pressure to buy quickly and making it more likely that consumers will make buys they don't need.

Smaller businesses may not be able to compete with Prime Day deals, she said, but they can offer more personal connection and authenticity to customers by emphasizing their community ties.

"They have this opportunity to highlight that when people shop locally, they're also investing in their neighborhoods," she said. 

For people who plan to shop Prime Day deals, Echelbarger encourages them to make a shopping plan with a budget, and add friction to the shopping process through strategies such as waiting a few hours before making the final purchase. 

Financial adviser Catherine Crunden echoed similar advice, adding that customers should know what products cost normally and keep in mind that there's a lot of other sales days besides Prime Day, like Black Friday in November. 

Customers should also focus on what they need and avoid getting sidetracked by sales on other goods they didn't intend to buy, said Crunden, executive director of ALINE Wealth in Melville.

"The best way to avoid overspending is to have clear knowledge of what you want to buy," she added.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.