MIMI–(BUSINESS WIRE)–Amazon Prime Days 2022 helped buoy the wider retail market and drive double-digit sales growth, as merchants across the world used interest in its annual sales event to help boost their own sales, according to ACI Worldwide.
ACI Worldwide (NASDAQ: ACIW), is the global leader in mission-critical software, and its merchant business serves tens of thousands of businesses worldwide. The payments leader analysis showed that across its merchant customers overall transaction volumes increased by 25 percent with transaction values increasing by 20 percent compared with 2021, lifted by mobiles, electricals, and electronics, and despite a small lag in general retail products.
The rise in sales also held up remarkably well compared with the onset of the pandemic in 2020, with a 26 percent rise in transaction volumes and a 10 percent increase in the value.
ACI’s market intelligence, derived from the transaction data from thousands of its merchant customers worldwide, attributed the sustained sales to the growing number of easier, more convenient and safer to pay, as well as independent consumers emerging from COVID, hedging against growing inflation fears and economic uncertainty.
“It is clear that omni-channel sales are now an integral part of our lives, and two years of living with COVID have left consumers much more comfortable shopping using a variety of payment methods across a variety of channels,” said Basant Singh, head of merchant, ACI Worldwide.“Despite this wide range of choice, we are witnessing a much more cautious approach from consumers, highlighting growing uneasiness with pessimistic economic indicators and pressure on their wallets.”
Mobiles, electricals and electronics lead
According to ACI’s analysis, electrical and electronic items were the most popular purchases, followed by general retail products. Electrical and electronics saw the value of transactions soar 90 percent on the first day, with the average transaction value (ATV) increasing by $275 (53%), compared with 2021 and 16 percent on day two with ATV rising by $238 (37%) . Mobile phones and accessories were the most popular, with transaction values almost doubling to 96 percent on day one.
The retail sector showed mixed success. General retail saw a 64 percent increase on day one and a 21 percent increase in volume on day two, with fashion experiencing a modest 13 percent growth over 2021 on the first day. There was a noticeable shift from “throw away” fashion towards longer lasting and durable items, confirming the consumer growth concerns over the economy and their finances.
BNPL on the rise
There was also a change in how consumers shopped. The average value of buy now pay later, (BNPL) transactions rose almost 50 percent ($52), highlighting a trend towards splitting higher value items into more affordable installments, confirming consumer caution over inflation. BNPL purchases also saw a record 99 percent approval rate.
Mobile purchases strong; desktops dominate bigger ticket items
ACI noted a 25 percent increase in transaction volumes for mobile devices, compared with a 15 percent rise for non-mobile devices. Mobile device ATV was flat compared with 2021, while non-mobile grew by 8 percent, or $9 – an indication that shoppers are becoming more comfortable with frequent mobile device purchases. However, non-mobile devices (ie, desktops) still dominate bigger ticket items.
Credit and debit cards rise along with eWallets
Traditional payment methods, credit and debit cards saw a 22 percent and 25 percent rise in transaction volume and value respectively. eWallet volumes saw a four percent increase primarily due to saved in-app card details, and eWallets made it easier for shoppers to make purchases giving credit and debit cards an advantage.
Fraud attempts throughout Prime Days remained flat, rising a modest 0.1 percent over 2021 figures, despite the surge in transactions and increased number of payment methods. Notably, fraud attempts on eWallets decreased by 0.2 percent.
“The real success story throughout Amazon Prime Days has been consumer security,” said Erika Dietrich, head of fraud management and payments analytics, ACI Worldwide. “Despite shoppers buying more, paying more, and Prime Days being trailed for months, fraud attempts flatlined or faltered. It seems that enhanced merchant fraud management systems and improved customer security habits are having an impact. There is now a safer way to shop taking shape.”
- EU: 21 percent increase in transaction volumes, with average transaction value (ATV) decreasing 15 percent, or $17, indicating European shoppers’ Growing concern surrounding discretionary spending as EU inflation and energy costs continue to rise
- North America: 22 percent increase in value of transactions, with ATV increasing by 12 percent ($14) as N. America shoppers increased their basket size
- LATAME: Huge swings with soaring volumes and plummeting values: transaction volumes skyrocketed almost threefold, while transaction values plunged 33 percent, or $56
- Australia: Consumers went all in with a 52 percent increase in transaction value, and ATV nearly doubling to 95 percent, or $141
About ACI Worldwide
ACI Worldwide is the global leader in mission-critical, real-time payments software. Our proven, secure and scalable software solutions enable leading corporations, fintechs, financial disruptors and merchants to process and manage digital payments, power omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.
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