Amazon's Prime Day is set to be $1.2 billion bigger than last year, analyst says

  • Amazon will rake in $3.6 billion in sales this Prime Day, analyst Daniel Ives estimates.
  • That's up from $2.4 billion just a year ago, thanks to an extra 12 hours of discounts and heavy promotion from Amazon.
  • Shares hit an all-time high of $1,827 Monday morning. 
  • Follow Amazon's stock price in real-time here. 

Amazon is set to rake in $3.6 billion in sales this Prime Day — a full $1.2 billion more than last year, one analyst predicts.

Daniel Ives, the head of technology research at the market-research analytics firm GBH Insights, says the uptick is caused in part by the sale's lasting 36 hours this year — up from 24 previously — and also by how heavily Amazon has pushed discounts, especially on Alexa products.

"There's a much broader push this year, from discounts, to the type of inventory, and Amazon's marketing push as well," Ives said in an interview. "When you think about Alexa, smart speakers, and smart home products, it's really becoming more and more essentially to the consumer. Discounts on Echo and other Alexa products today are really just the tip of the iceberg."

RELATED: Check out some early Amazon Prime Day deals: 

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5 early Amazon Prime Day deals
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5 early Amazon Prime Day deals

$100 off Amazon Echo Show

Now through Prime Day, get an Echo Show for only $129 (normally $229). 

Up to 40% off private label clothing and accessories

Through Prime Day, save up to 40 percent on select items from private label clothing and accessories brands like Core10 and Goodthreads. Deals change daily, so keep an eye out for daily deals you don’t want to miss, like 30 percent off women’s swimwear and 50 percent off Calvin Klein accessories and fragrance.

25% off furniture, decor, electronics and more

Through July 15, shop furniture and décor from Rivet and Stone & Beam for up to 25 percent off select items. Rivet specializes in versatile mid-century modern styles, while Stone & Beam offers homey and family-inspired styles for a casual and cozy look.

20% off home, kitchen and more from AmazonBasics

Now through July 15 save up to 20 percent on select products from AmazonBasics. You’ll find discounts on everything from bedding and bath accessories to cookware and electronics. 

30% off everyday essentials

Right now you can get 30 percent off on a range of everyday essentials, like cleaning supplies from Presto!, or kitchen staples from AmazonFresh and personal care from Solimo

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Ives estimates Alexa — Amazon's name for the digital voice assistant that powers products like its Echo smart speaker — to be a $1 billion opportunity over the next three years. Many of those devices are on sale for up to half-off as Prime Day gets set to kick off at 3 p.m. on Monday.

As a whole, the Prime offering is one of the fastest-growing segments for Amazon's bread-and-butter retail business. In April, Amazon said Prime had over 100 million subscribers — the first time a number was released for the program — assumably up from the previously disclosed "tens of millions" the company previously touted. Ives estimates subscriptions are growing 30% to 40% per year.

"The most important part of Prime Day is to drive the Amazon brand and further expand its competitive moat," said Ives, who has a $2,000 price target for shares of the company. "If you look at membership over the last few years, it's grown significantly more than expectations. It's just another ingredient in that recipe for success."

Shares of Amazon have gained 54% since the beginning of the year, hitting an all-time high of $1,7.21 on Monday morning. 

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SEE ALSO: Prime Day vs Black Friday: We compared sale prices for all of Amazon’s devices, and Prime Day is clearly the better time to buy

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