Amazon Faces Scrutiny as Prime Day Sales Drop and Bezos Sells Shares

Amazon Prime Day 2025: A Historic Event Under Pressure

Amazon’s 2025 Prime Day, once a hallmark of the e-commerce calendar, is facing unprecedented scrutiny as sales figures show signs of strain and company founder Jeff Bezos executes major stock sales. The four-day shopping event, which began July 8 and runs through July 11, is the longest Prime Day in the company’s history. Yet, as the dust settles, questions are mounting about Amazon’s market dominance, consumer demand, and the company’s evolving business strategy.

Prime Day Sales: A Mixed Picture

Initial reports on Prime Day sales present a complex narrative. According to Adobe Analytics, U.S. shoppers spent nearly $7.9 billion online across all retailers on the first day alone, representing a nearly 10% increase from last year’s opening day. Adobe projects that total online spend during the four-day event will reach a record $23.8 billion—a 28.4% year-over-year increase, equivalent to two Black Fridays in terms of online sales volume.

However, not all data sources agree on the strength of Amazon’s performance. Momentum Commerce, which manages sales for dozens of Amazon sellers, reported a 41% decline in sales for the first day of Prime Day compared to last year. The consultancy attributes the drop to consumer “treasure hunting”—shoppers are adding items to their carts but waiting to see if better deals emerge later in the event. The average discount rate was also lower this year, at 21% versus 24% in 2024.

Amazon disputes these third-party figures, with company executives stating they are “pleased with customers’ response” and highlighting strong engagement from Prime members. According to Numerator data, two-thirds of Prime Day purchases so far have been for items costing less than $20, suggesting consumers are prioritizing essentials and lower-ticket items amid ongoing economic uncertainty.

Economic Impact and Consumer Behavior

Prime Day has evolved into a barometer of U.S. consumer confidence and spending habits. The event’s expansion to four days reflects both Amazon’s ambitions and the intensifying competition from retailers like Walmart, Best Buy, and Kohl’s, all of which have launched their own parallel sales events.

Yet, the broader economic context is shaping shopper behavior. More than a third of Prime Day shoppers say tariffs have influenced their purchasing decisions, while 31% report being more cautious about spending this year. Rising prices, driven in part by tariffs on imported goods, are prompting many consumers to seek out bargains and focus on necessities rather than discretionary splurges.

Sales tax variations by state and the impact of tariffs are also pushing up final costs for many shoppers, further complicating the value proposition of Prime Day deals. This year’s event has seen a shift toward smaller purchases and a heightened sensitivity to price, underscoring the challenges facing both Amazon and its competitors as they navigate a changing retail landscape.

Jeff Bezos’ Stock Sales: Fueling Speculation

Adding to the intrigue, Amazon founder Jeff Bezos has sold a significant tranche of Amazon stock during the Prime Day period. Public filings show that Bezos sold 485,205 shares valued at $108 million, followed by an additional $665 million worth of stock. These sales have fueled speculation about the company’s financial health and the founder’s outlook on Amazon’s future trajectory.

While large stock sales by company founders are not uncommon and may be driven by personal financial planning or diversification strategies, the timing—coinciding with a high-profile sales event and mixed performance data—has drawn attention from investors and analysts.

Regulatory Scrutiny: Lawsuit and Document Disclosures

Amazon is also facing legal headwinds. A U.S. judge has formally admonished the company for withholding documents in an ongoing lawsuit that accuses Amazon of deceiving customers about its paid Prime service. The lawsuit alleges that Amazon made it difficult for customers to cancel their Prime memberships and misrepresented the value of the service. The judge’s rebuke adds another layer of complexity to Amazon’s current challenges, as the company must now contend with both regulatory scrutiny and shifting consumer sentiment.

Strategic Investments: Betting Big on AI and Infrastructure

Amid these challenges, Amazon is doubling down on its long-term strategy. The company recently announced a multibillion-dollar investment in Anthropic, an artificial intelligence startup, expanding its total commitment to $8 billion. This move is part of Project Rainmaker, which will see Amazon build a 2.2 gigawatt datacenter powered by its proprietary Trainium 2 chips. The investment underscores Amazon’s belief in the transformative potential of AI and cloud infrastructure, even as its core retail business faces headwinds.

The Rise of Low-Cost Chinese Goods

Another issue impacting Amazon’s market position is the growing prevalence of low-cost Chinese products on its platform. Many of these goods are resold at higher prices, raising concerns about product quality, authenticity, and the long-term viability of Amazon’s marketplace model. Critics argue that the influx of inexpensive imports may erode consumer trust and make it harder for domestic sellers to compete, further complicating Amazon’s efforts to maintain its reputation as a destination for value and selection.

Regional Comparisons: U.S. Versus Global Markets

While U.S. Prime Day sales are under the microscope, it’s important to consider Amazon’s global footprint. In regions such as Europe and Asia, Prime Day has historically seen robust growth, with consumers embracing the convenience and savings offered by the event. However, international markets are also grappling with inflation, currency fluctuations, and regulatory pressures, which could temper growth in the years ahead.

In the U.S., Prime Day’s expansion to four days and the proliferation of competing sales events reflect a maturing e-commerce market. Retailers are increasingly focused on customer retention, loyalty programs, and personalized offers to differentiate themselves in a crowded field.

Historical Context: The Evolution of Prime Day

Since its launch in 2015, Amazon Prime Day has transformed from a one-day sales experiment into a global retail phenomenon. The event was initially conceived as a way to boost Prime memberships and clear inventory during the summer lull. Over the years, it has become a critical driver of revenue for Amazon and its third-party sellers, with billions of dollars in sales generated annually.

Prime Day’s success has also reshaped consumer expectations, with shoppers now accustomed to deep discounts and fast shipping on a wide range of products. The event’s influence extends beyond Amazon, prompting rival retailers to launch their own sales and accelerating the shift toward online shopping.

Looking Ahead: Uncertainty and Opportunity

As Amazon navigates a period of heightened scrutiny, shifting consumer behavior, and intensifying competition, the stakes have never been higher. The company’s ability to adapt—through strategic investments, operational innovation, and a renewed focus on customer trust—will determine its trajectory in the years to come.

Prime Day 2025 may ultimately be remembered as a turning point, marking both the challenges and opportunities facing one of the world’s most influential retailers. For consumers, investors, and industry observers alike, the coming months will offer critical insights into the future of e-commerce and the evolving role of Amazon in the global economy.