Amazon Prime gets bad news amid alarming customer issue

If you were to tell somebody a couple decades ago that one of the biggest retailers in the U.S. had virtually no brick and mortar stores, they’d probably say you were living on another planet. 

And, to some extent, the past several years have resembled something other-worldly.

Related: Famous retail chain makes two more alarming store closures

Nevertheless, Amazon  (AMZN)  has risen to extreme popularity over the past decade for its ability to offer its customers convenience and expedience.

And that’s just with the click of a button.

Despite — or, perhaps, because of — its limited footprint, Amazon has been able to firmly cement itself as one of the premier retailers of today.

Its customers are willing to pay upwards of $140 per year for the privilege of speedy shipping and seemingly endless selection. 

It’s popularized same- and next-day delivery — so much so that we now expect nearly all our goods to arrive at our doorstep instantly. 

This is so much the case that other retailers like Walmart and Target have launched their own versions of Amazon Prime.

Dubbed Walmart+ and Target Circle 360, both retailers have accelerated their e-commerce capabilities in an effort to keep up with customer demand — and to grab a piece of the online pie before Amazon gobbles it all up.

The first day of Amazon Prime Day isn’t indicating promising results.

Image source: Bloomberg/Getty Images

Amazon has been growing 

Part of the reason Amazon has been able to grow so quickly is because it offers quick access to pretty unbeatable deals.

While other retailers certainly offer rock-bottom prices, like Costco and Dollar General, these stores operate primarily in-person.

Sure, you can buy things on all of their websites, but the lion’s share of business is done at their brick and mortar locations. 

More Retail:

Their customers primarily do their shopping at a physical location, which means you have to actually put some clothes on and drive there if you want to save some money.

Amazon, on the other hand, allows you to shop for deals from the convenience of your own home. 

And that’s all done while you wear sweatpants or whatever else it is you find comfortable. Which is good business, particularly for people who value their time almost as much as their dollar.

In fact, Q1 2025, Amazon’s net sales grew by 9% year-over-year. 

Amazon Prime has a problem

Amazon had a bumper 2024. 

Its Prime Days were a success, and execs proudly touted it as a record for the company. 

Sales topped over $14 billion — up over 11% compared to the year prior.

Now, however, a worrying new report from Momentum Commerce indicates Amazon’s 2025 Prime Days aren’t quite off to an electric start.

Related: Famous sporting goods chain makes drastic change worth millions

Momentum Commerce claims sales during Amazon’s first day of Prime Day, July 8, 2025, were down by 41% compared to the first day in 2024. 

It’s still predicting Amazon Prime in 2025 to be a big one, however. It projects growth of over 9% compared to 2024.

Amazon, for its part, is refuting Momentum’s findings. 

A spokesperson for Amazon told Axios that the numbers are “highly inaccurate” and “statements made by third-party consultancies that don’t have access to the actual data.”

Adobe Analytics, on the other hand, claims sales for Prime Day are already up 10% compared to last year.

Related: Amazon suddenly closing key warehouse, signaling delivery shift