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Consumers expected to spend less on Amazon Prime Day amid high inflation

The outlook for Prime Day sales, though still solid, is expected to be blunted by consumer concerns about inflation.

YORK, Pa. — Amazon Prime Day starts today. The 48-hour event has become an online shopping tradition since it began in 2015.

The outlook for Prime Day sales, though still solid, is expected to be blunted by consumer concerns about inflation.

In May, consumer inflation hit 8.6%, the highest level in more than 40 years. A RetailMeNot survey found 61% of people said they were likely to reduce spending this summer due to inflation.

J.P. Morgan predicts Prime Day sales will be close to what they were last year, estimating sales will rise 5% from last year.

Sellers have also been affected by inflation. About 90% of Amazon sellers have raised their prices in the last 6 to 12 months, according to Steven Pope, founder of My Amazon Guy. Many sellers are reluctant or unable to offer more discounts for Prime Day.

For that reason, discounts won’t be as deep this year.

“It’s a good time for consumers to go and shop, absolutely, but I wouldn’t go out of your way to buy a bunch of stuff," Pope said. "Maybe that one item you were waiting or sitting on that you’re tracking...but you’re not going to get a 50% off deal on Amazon Prime Day, by any stretch.”

Discounts may be advertised as larger than they really are, Pope said. First, the percentage off is listed in relation to the MSRP suggested retail price, which is often higher than the actual price. Second, prices often go up shortly before a sale to make it seem like they have a bigger discount.

Pope suggested using a tracking site like CamelCamelCamel to track prices of specific items over time.

Only Prime members can take part in Prime Day, but more than half of Americans are. According to recent estimates, 62% of American households have a Prime membership.

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