A four-day Prime event is anticipated to see Brits splashing out £1.9bn, as consumers increasingly seek deals and discounts for their shopping.
Retailers are optimistic that the discount extravaganza will provide a much-needed boost following a challenging first half of the year, and an opportunity to get a head start on what is predicted to be a difficult second half, as reported by .
"There's little doubt that both shoppers and sellers are set to gain from the midsummer madness of Prime Day," David Jinks, Parcelhero's head of consumer research, said.
If º£½ÇÊÓƵ sales hit £1.9bn and US sales reach £20bn, this would signify a 60 per cent year-on-year growth rate for the event.
"The thinking is that a strong event now might help to offset a bumpy second half of the year," Jinks added.
Online spending totalled £49.7bn in the first half of the year, according to research from Adobe – a 1.6 per cent increase in what was once a consistently growing area.
Low confidence, inflation and high interest rates have deterred spending; demand for discounted items has driven sales for nearly a year straight.
This poses a particular problem for small traders, who operate on razor-thin margins and can't afford to drop prices as much as larger retailers.
Traders at risk from over-dependence and returns
However, Jinks cautioned that as Amazon continues to expand its market share, even very successful smaller traders could be "at risk of becoming over-dependent on the platform".
"If anything goes wrong with the relationship then that could be a big problem for sellers, especially if they have put all their eggs in the Amazon basket.
"Amazon can and will delist, suspend or even ban sellers who violate its policies," Jinks stated.
The issue of returns is another significant concern affecting both large and small sellers.
According to software platform Manhattan Associates, over half – 55 per cent – of consumers will return purchases made on Prime Day, with a third of customers returning one to three items.
"The return-to-sender phenomenon is no longer a minor back-end issue... it's a frontline challenge impacting customer satisfaction and profitability," Martin Lockwood at Manhattan Associates commented.
Retailers have been striving to reduce their losses from returns, but their efforts have met with limited success: customer pushback has been immediate and threatens to necessitate a full rollback of stricter return requirements.
Retailers look to AI for help
One method retailers are employing to recoup lost revenue from returns and cautious shoppers is through the use of AI tools.
Usage is skyrocketing: Traffic to retail websites from AI tools in June 2025 has increased by 1,200 per cent compared to August 2024, as reported by Adobe.
Consumers are increasingly utilising the service to compare prices, compile shopping lists and research products, providing retailers with ample opportunities to intervene.
Brands can utilise Generative AI results in various ways, such as by gauging agentic traffic that retrieves and summarises content on owned channels, or by seeking guidance on enhancing 'discoverability'.
Significantly, consumer confidence in these tools is on the rise. Conversion rates have seen a twofold increase in the past two months, and consumers spend 23 per cent more time on a website when directed there by an AI.
Traditionally, the triumph of an advertising campaign has been measured by viewer engagement and conversion rates – and it's becoming increasingly apparent that those viewers will be engaging with GenAI tools.
