What Retailers Can Expect From Prime Day 2022

June 10, 2022
1 minute

Amazon still hasn't announced when this year's Prime Day is. But that hasn't stopped 3rd-party sellers from getting ready for this big event. 

Typically, Amazon holds the promotional event in mid-to-late July. And if this scheduling holds true, CBS predicts that this year's event will be held July 18-19. 

In previous years, Prime Day has served as the biggest 2-day sales period for Amazon sellers. Last year, for instance, customers spent  $1.9B+ on 70m products from small businesses selling on the marketplace. 

Prime Day 2022, however, likely won't garner record sales. 

In April, Amazon posted its 1st quarterly loss in 7 years, citing slowing online shopping sales and rising costs. They lost $3.8B in Q1 compared to an $8.1B profit in Q1 2021. And per Amazon CEO Andy Jassy's inaugural Share Holder Letter, Amazon "can't keep absorbing these costs."

So, in January, sellers were hit by cost-related fee increases. Then, Amazon added another 5% inflation surcharge in April. 

Meanwhile, sellers also have their own rising costs related to inflation, labor shortages, and supply chain issues eating away at margins. The combination has left sellers with lower profits leading into Prime Day. 

Because of this, some 3rd-party sellers wonder if it's even worth participating in Prime Day this year. Others set up marketing events per usual. 

"It's still a great opportunity to get out there... before the holiday season, even if you're going to take some margin hit," said Lesley Hensell, owner of Blackland Prairie and co-founder of Riverbend Consulting. "You'll (hopefully) make up for it with the cash flow."
PS - Prepping for Prime Day? Cogsy's Amazon integration can make sure you reach your revenue goals.

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