Which ASX companies got a boost out of Amazon Prime Day?
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Amazon Prime Day has come and gone for another year and a number of ASX stocks benefited from it.
Amazon Prime Day is exclusive to Amazon Prime members, but those members number over 80 per cent of USA households. And the event typically leads to a rise in ecommerce spending at other outlets with many competitors also offering deals.
TechRadar reported overnight that 250 million items were purchased across 20 countries – a record since the inaugural event in 2015. Analysts at Abobe Digital Economy Index estimate approximately US$11 billion was spent over the 48 hours.
So far not many stocks have revealed how well they performed. But one was Harris Technology (ASX:HT8) which yesterday revealed to shareholders it made $429,963 in sales, which was 32 per cent higher than last year’s result.
CEO Garrison Huang said it was a solid result that was a direct consequence of Amazon’s gradual expansion in Australia.
“As the leading tech seller on the Amazon Australia marketplace, we have seen strong demand for IT and home office products which accelerated further through Prime Day,” he said.
“Online marketplaces continue to grow as the convenient alternative to shopping centres, so we look forward to further growth alongside Amazon Australia which is emerging as one of the national destinations of choice for online shipping.”
Harris was one of the best performers although the top stock in the retail space was consumer electronics company TTA Holdings (ASX:TTA) despite not having any updates.
Another was online retailer Kogan (ASX:KGN) which runs a similar subscription service called Kogan First. It operated a promotion for Kogan First to coincide with Amazon Prime Day.
Last year, due to the Covid outbreak, both Amazon Prime Day and Kogan’s promotion fell in the December quarter amidst Black Friday and the Christmas shopping season.
While Kogan had its lips sealed on how well these promotions have done, during the first half of FY21 its gross profit grew by over 120 per cent, sales by over 96 per cent and active customers reached over 3 million customers.
Kogan shares saw a slight boost this week as did Redbubble (ASX:RBL), which is a platform focused on independent artists.
Similar to Kogan, Redbubble rose multiple times in 2020 but declined in 2021 as shareholders looked to stocks gaining from the post-COVID recovery.
At Stockhead, we tell it like it is. While Harris Technology is a Stockhead advertiser, it did not sponsor this article.