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The dawn of v-commerce

News, 14 July 2016

SEATTLE, WA: Tuesday's Amazon Prime Day was the online retailer's biggest-ever single-day sale, surpassing all previous events, including Black Friday and Cyber Monday, and heralding the advent of a new way of shopping online.

Aimed exclusively at Amazon Prime members, worldwide customer orders were up 60% on the inaugural Prime Day last year, while US orders were up 50%, the company reported.

"After yesterday's results, we'll definitely be doing this again," said Greg Greeley, vice president, Amazon Prime.

It was also the biggest-day ever for Amazon devices globally and a record Prime Day for each Amazon device category including Fire TV, Fire tablets, Kindle e-readers and Alexa-enabled devices.

A potentially significant development was the boost for Amazon Echo, the interactive speaker that springs to life when addressed by the name of its operating system Alexa, which saw sales 2.5 times greater than any previous record day,

Further, members purchased on average one Alexa-exclusive deal per second during Prime Day using their voice. After e-commerce and m-commerce, we are now entering the era of v-commerce, noted Marketing Land.

Analysts have also observed the online retailer's move into new product categories, highlighting grocery and clothing in particular.

"We are often asked by investors which categories matter most to Amazon's forward growth," said Brian Nowak of Morgan Stanley earlier this week.

"Our answer is Grocery and Clothing, given these categories combined make up over $1tn of annual consumer expenditure, or around 42% of Amazon's US addressable spend."

He pointed to data showing that 52% of US consumers have purchased clothing online in the past 12 months, and 45% of US consumers have purchased clothing on Amazon in the past 12 months.

This number is up from 39% in the first quarter of 2015, making it the largest year-on-year increase among the ten retailers he monitors.

Data sourced from Amazon, Marketing Land, Smarter Analyst; additional content by Warc staff