Prime Day 2025 Sets Records—but Leaves Sellers with Mixed Feelings
Amazon’s biggest shopping event of the year is in the books, and the numbers are staggering: over $24.1 billion in U.S. eCommerce sales were driven during the two-day Prime Day event, marking a 6.1% year-over-year increase, according to Adobe Analytics and Amazon’s official recap.
Top Performing Categories
Amazon highlighted strong gains in:
- Kids apparel: +250%
- Dorm essentials: +84%
- Exercise equipment: +80%
- Back-to-school tech: +90%
- Home appliances & kitchen: Top performers across both days
AI-Powered Discovery
One of the biggest changes this year was the Gen AI-generated deal recommendations, which Amazon said saw 3300% more usage than in 2024, helping surface relevant deals faster. Sellers who had solid review counts and optimized listings likely benefited the most, but several voiced concerns about visibility and deal placement.
Sellers Sound Off
Despite record-breaking GMV, seller sentiment on forums and LinkedIn was mixed. Many sellers felt buried by aggressive Amazon Retail pricing, poor deal visibility for 3P offers, and steep ad spend competition.
Comments included:
- “We ran a 20% coupon and still couldn’t compete with Amazon Retail’s pricing.”
- “Ad costs were insane—we saw 40% higher CPCs vs last year.”
- “Sales were great on Day 1, but flatlined by mid-Thursday.”
What This Means for Brands
- Retail readiness is still everything. Amazon prioritized deals with the highest conversion potential, so listings with A+ content, Prime eligibility, and strong reviews took the spotlight.
- AI tools are shaping consumer journeys. Brands not feeding the algorithm—via reviews, high-converting images, and Sponsored Product data—risk losing relevance.
- Pay to play continues. Top brands leaned into full-funnel ad strategies (DSP + Sponsored) to stay visible.
What’s Next?
Q4 is right around the corner. Use this momentum to:
- Reassess ad performance and trim wasted spend
- Double down on review generation (Vine, influencer seeding, etc.)
- Prep listings now for Holiday traffic and potential October Prime deals
Stay sharp. Prime Day may be over, but the real test is how you capitalize on the halo effect.
Walmart Extends Its Lead in Grocery, Pushes Memberships During Deals Week
While Amazon grabbed headlines during Prime Day, Walmart made a bold play of its own with a six-day “Walmart Deals Week”, outlasting Amazon’s four-day sales event and aiming to convert attention into long-term loyalty.
Walmart’s Strategy: Go Longer, Play to Strengths
- Timing Advantage: Walmart kicked off July 8—three days ahead of Prime Day’s July 11 start—and kept the momentum going through July 13.
- Walmart Plus Push: The retail giant offered 50% off Walmart Plus memberships, targeting higher-income shoppers and aiming to grow its paid user base ahead of Q4.
- Grocery is the Trojan Horse: With 60% of U.S. sales tied to groceries, Walmart leaned into its in-store + online advantage, bundling everyday essentials and food deals with larger ticket items.
How It Stacks Up Against Amazon
- Ecommerce Sales: Walmart pulled in $121B in online sales last year—still a fraction of Amazon’s U.S. business, but their Q1 earnings showed their U.S. eCommerce division is now profitable.
- Prime vs. Plus: While Walmart Plus lags behind Amazon Prime in size and revenue, the discounted membership offer during Deals Week could drive new signups—especially as inflation-conscious consumers shop around more than ever.
What Sellers Should Know
- Walmart continues to grow its relevance beyond budget-conscious shoppers. Brands targeting everyday household items, grocery-adjacent CPG, or value-driven wellness products should watch this trend closely.
- The longer event window created more breathing room for campaigns, but competition was still fierce—especially with Target, Ulta, and Best Buy joining the fray.
- For brands in grocery or daily essentials, Walmart’s momentum in eCommerce could open new growth channels, especially as they keep investing in omnichannel logistics and same-day delivery.
Takeaway:
Walmart isn’t playing Amazon’s game—they’re playing their own. And with deeper grocery roots and a rapidly improving online experience, they’re carving out a membership-powered moat of their own. For sellers, the playbook is clear: optimize for Walmart’s growing digital shelf now, or risk falling behind as Deals Week becomes a retail fixture.
Target’s Roundel Launches AI-Powered Ad Tool to Attract Brand Dollars
Target’s retail media arm, Roundel, is stepping up its game with the rollout of a new AI-powered ad-buying platform, aiming to simplify campaign setup and better compete with Amazon, Walmart Connect, and Criteo.
What’s New
- Roundel’s new tool leverages AI to auto-generate campaign recommendations across audience targeting, creative formats, and performance forecasting.
- The system promises more self-serve efficiency for media buyers, especially smaller brands and agencies looking to reduce friction when advertising on Target’s network.
- The platform will integrate both on-site (Target.com and app) and off-site placements across the open web, making it a more versatile full-funnel offering.
Why It Matters for eCommerce Sellers
- Ease of Entry: Smaller DTC brands selling at or through Target can now launch ad campaigns without heavy upfront planning or media buying experience.
- Closed-Loop Measurement: With in-store and online sales data in one place, Roundel’s promise of attribution clarity may appeal to brands struggling to connect awareness to conversion on other platforms.
- More Competition for Brand Spend: This move signals Target’s intent to claim a larger share of the growing retail media pie—currently dominated by Amazon and Walmart.
Strategic Outlook
For brands in CPG, household goods, and beauty—categories where Target already holds strong market share—Roundel’s smarter tools mean greater discoverability and retargeting precision.
However, performance marketers should stay cautious. Roundel’s reach and shopper volume still lag far behind Amazon, and campaign data transparency remains a common concern across emerging retail ad networks.
Bottom Line
Target is investing in making ad buying smarter and easier—especially for mid-sized brands looking to diversify away from Amazon. While the scale isn’t there yet, the tools are catching up fast.
llms.txt: A New Standard to Help AI Tools Discover Your Store
A new open-source protocol called llms.txt is gaining traction—and it could change how generative AI tools like ChatGPT, Perplexity, and Google Gemini surface your eCommerce store in future queries.
What is llms.txt?
Inspired by robots.txt, the llms.txt file sits in the root of your website and tells Large Language Models (LLMs) how they can use your content. It’s a way to opt in or out of AI indexing, and more importantly, signal which URLs, pages, or resources should be prioritized for AI training and surfacing.
Why This Matters for Sellers
As consumers increasingly ask AI tools for product suggestions (“What’s the best organic skincare brand?”), having your site content discoverable and correctly indexed by these systems will influence who gets recommended first.
For example:
- An optimized llms.txt could help AI models find your Amazon Storefront, DTC homepage, or product comparison guides.
- This may be critical for SEO in the AI era, where traditional search rankings are supplemented—or even replaced—by AI summaries and product recs.
Key Recommendations
- Place a simple llms.txt file in your website’s root directory.
- Use it to point AI tools to your most important pages: landing pages, product detail pages, buying guides, blogs, and even review-rich content.
- Exclude sensitive pages or proprietary content that shouldn’t be scraped.
The Bottom Line
AI discovery is becoming the new search. Early adopters who implement llms.txt now may gain a visibility edge as LLM-powered shopping tools become mainstream.
How to Bounce Back After a Million-Dollar Loss: Lessons for eCommerce Founders
Losing a million dollars can feel like the end—but for many brand founders, it’s just the turning point. In a recent piece from Practical Ecommerce, several entrepreneurs shared what they learned after facing major financial setbacks, offering valuable takeaways for eCommerce operators.
Key Lessons from Founders Who’ve Been There
- Own the Numbers
Founders who failed cited one common mistake: not understanding their financials. From overreliance on bookkeepers to ignoring unit economics, the lack of real-time financial clarity turned slow leaks into revenue hemorrhages.
→ Action Step: Review your margins, ad efficiency, and burn monthly—don’t outsource your financial understanding. - When Growth Is the Enemy
One brand scaled ad spend aggressively without knowing how to fulfill the demand. Another pushed into international markets too early. The takeaway: don’t confuse sales growth with business health.
→ Action Step: Before scaling, make sure operations, inventory, and support can handle the weight. - Clean Up Fast
Brands that survived acted quickly: cut unprofitable SKUs, paused ad campaigns, renegotiated with suppliers. Those who waited too long saw debt snowball.
→ Action Step: Be ruthless with underperforming initiatives. Make hard decisions early. - Transparency Builds Trust
One founder shared their financial mess with the team—then asked for help. The team stayed, rallied, and helped rebuild.
→ Action Step: Internal transparency can save morale and retain your best people, even during downturns.
The Upside of a Crisis
Almost every founder interviewed said their loss ultimately made the business stronger. Leaner, more focused, and more disciplined.
Bottom Line
Surviving a million-dollar loss starts with taking accountability, acting fast, and learning the hard truths about what broke. For sellers operating on thin margins in today’s volatile eCommerce environment, these lessons are more relevant than ever.
eBay Launches Graded Comic Book Category to Court Collectors
eBay is leaning deeper into collectibles with the official debut of a dedicated “Graded Comic Books” category, giving buyers and sellers a centralized space for authenticated, investment-grade comics.
What’s New
- This category is part of eBay’s push to professionalize the collectibles space, building on prior efforts in trading cards, sneakers, watches, and luxury handbags.
- Only professionally graded comics—like those from CGC (Certified Guaranty Company)—can be listed in this category.
- eBay will provide clearer categorization, enhanced search filters, and added seller protections.
Why It Matters for Sellers
- eBay remains a major player in the collectibles and hobby space. Creating niche verticals helps drive higher AOVs and trust, which in turn attract serious buyers and institutional collectors.
- This move also aligns with the broader “vaultification” of assets trend—treating collectibles like financial investments with long-term appreciation potential.
- Sellers can now list graded comics with higher confidence, knowing the platform is actively courting that buyer segment.
For eCommerce brands in adjacent niches (collectibles, hobby gear, memorabilia, or pop culture merchandise), this signals eBay’s continued relevance and specialization.
→ If your product appeals to fandom, scarcity, or investment potential, eBay may still be a viable sales channel.
Bottom Line
eBay is doubling down on authenticated marketplaces, and collectibles are leading the charge. For sellers, this is a chance to tap into a growing high-trust buyer segment—if your brand plays in the right niche.
Consumers Start Buying Early to Dodge Tariff Price Hikes — NRF Confirms Retail Impact
As the threat of new tariffs looms, a growing number of U.S. consumers are shifting their shopping habits to get ahead of expected price hikes. A recent Inmar Intelligence survey revealed that 77% of shoppers plan to make purchases sooner than normal to avoid the impact, and nearly half are buying in bulk to stock up.
The National Retail Federation backs this up. According to the latest CNBC/NRF Retail Monitor, June retail sales slowed, in part due to consumer anxiety around tariffs and inflation. While discretionary spending held steady in some categories, NRF Chief Economist Jack Kleinhenz noted that “consumer behavior is clearly being shaped by ongoing tariff concerns.”
Generational Behavior Shifts
- Gen Z and Millennials are leading the charge, with over 80% reporting adjusted buying habits.
- These consumers are especially active in categories like electronics, apparel, and home goods, which are expected to see price volatility due to goods sourced from China.
What It Means for eCommerce Sellers
- Urgency sells. Buyers are tuned into economic shifts—leveraging tariff-related messaging in your promotions could boost conversion rates.
- Plan for front-loaded demand. If consumers accelerate purchases now, Q4 could see a slowdown unless reactivated with fresh offers.
- Watch your sourcing. With the NRF warning of increased tariff sensitivity, brands should consider diversifying suppliers or clearly communicating value to justify potential price hikes.
NRF June Retail Snapshot
- Month-over-month, core retail sales dipped 0.2% in June
- Categories like clothing and home furnishings saw notable slowdowns
- “Tariff headlines are reshaping household decisions” — NRF
Bottom Line
Tariff talk is no longer abstract—it’s impacting wallets and reshaping purchase timing. Smart sellers will get ahead of this wave with early promotions, demand forecasting, and supply chain agility to stay competitive as price sensitivity rises.
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