Amazon Prime Day reveals caution in US consumer spending

U.S. online shoppers flocked to deals on electronics, appliances, children's items and everyday products during Prime Day, Amazon's annual sales event, spending more than $26.4 billion between June 23 and 26, according to data firm Adobe Analytics.

This multi-billion dollar expenditure represents an increase of 9.3% compared to the previous year, which retail experts attribute to high inflation, combined with consumers purchasing more optional and long-lasting products.

Adobe said deep discounts during the four-day Prime event led many consumers to purchase higher-priced items, including electronics, toys, appliances and toiletries, meaning retailers may have to continue offering significant discounts to clear shelves ahead of the holiday season.

In addition to rebates, tax refunds "may have provided a considerable boost to many of these discretionary goods categories," said CFRA Research analyst Arun Sundaram. Tax refunds will not be a factor for most consumers in the fall and winter months.

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Tax refund amounts rose 11.1% to $3,462 in 2026, according to IRS data, giving consumers a financial boost to help with purchases they've been putting off, Sundaram said.

Consumers also bought children's items and clothing ahead of the back-to-school season, toiletries and household items, signaling that Prime Day shoppers were looking to stock up on products "they would buy anyway," said Sonia Lapinsky, managing director of retail at consultancy Alix Partners.

Source: CNN