It's Amazon Prime Day - here are the stocks in Australia that could benefit (Pic: Getty)
It’s Amazon Prime Day, here’s how big it’ll be and the stocks in Australia that might benefit
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Over the next 48 hours it’s Amazon Prime Day and a number of ASX stocks which sell products on Amazon might benefit.
Prime Day (held over June 21 and 22 this year) is an annual event where Amazon Prime members get offered exclusive deals. Prime is a paid subscription program which offers additional perks (dependant on where you are) such as faster delivery times and unique services such as music and video streaming.
It goes without saying, given the ecommerce giant’s rise in Australia to $1 billion in annual revenue, Amazon Prime Day will be a big day here.
And it will actually go longer in Down Under having begun at midnight last night and not ending until 5pm (AEST) Wednesday. Of course, it will still be even bigger in the USA where over 80 per cent of households have a Prime account.
Shopping experience platform DealAid estimates that nearly 60 per cent of US consumers plan to shop at Amazon on Prime Day and spend an average of US$166, which is 49 per cent more than last year.
Even money-tight millennials will be getting into it, with 50 per cent planning on spending and expecting to part with an average of US$109.
Which stocks listed in Australia might benefit from Amazon Prime Day?
One company that might benefit is actually a competitor in Ruslan Kogan-founded online retailer Kogan (ASX:KGN).
Kogan operates a rival service to Amazon Prime, Kogan First and it is running a flash sale for its members which began overnight and runs until 11.59pm Wednesday.
US-based marketplace Zebit (ASX:ZBT) is another, and while it lacks a similar subscription service, it claims to be the Amazon of the underserved, serving customers with low or no credit scores with its BNPL products.
It may seem counter-intuitive to fight Amazon but the DealAid survey found that a substantial portion of consumers shopping on Prime Day would go elsewhere if better deals were to be found.
Nearly 60 per cent of millennials surveyed ticked this box. Walmart and Target (the US Target, not Australian) were two held in high regard.
Which stocks in Australia sell on Amazon?
Meanwhile, a handful of ASX stocks are working with Amazon rather than fighting them.
One ecommerce retailer poised to benefit is Harris Technology (ASX:HT8). As the leading Amazon Marketplace Tech seller, HT8 booked sales of $15.656m through its Amazon channel in 2020 alone, making up three per cent of third-party sales on the platform.
One of the more peculiar is hemp stock Live Verdure (ASX:LV1) which since last month has been selling its hemp-based capsules on Amazon.
Most others offer tech products, including Scout Security (ASX:SCT), which last year had its technology integrated into Alexa Guard — the e-commerce giant’s own home-monitoring system.
Smart lighting company Buddy Technologies (ASX:BUD) saw a windfall from Prime Day last year. Unfortunately for shareholders is suspended from trading due to an accounting failure and board resignations.
Social commerce company Crowd Media (ASX:CM8) and Eve Investments (ASX:EVE) are two other tech plays that sell on Amazon.
Even though the latter only sells at Amazon’s brick and mortar grocer Whole Foods, it is hardly missing out on the action. In previous years, Amazon has offered customers who spent at Whole Foods Amazon vouchers back or credits for their other services.
US-focused BNPL stocks Afterpay (ASX:APT), Zip Co (ASX:Z1P) and Sezzle (ASX:SZL) will likely see a benefit from Amazon Prime Day as well.
The latter of these has the biggest advantage, having recently signed a deal with Target – one retailer the DealAid survey said consumers might turn to if a better deal was to be found.
