The Prime Day Secrets Amazon Doesn't Advertise

Prime Day is here — and Amazon.com (NASD:AMZN) has really ramped things up for 2025. This year, the online retail giant has added two additional days to its annual summer shopping extravaganza.So I called up my friend Katheryn to get the inside scoop on the biggest and best deals we can expect to see. (Not all of my friends are CFPs and wealth managers — some of them know where to find half-price Le Creuset.)Katheryn is one of my closest friends — and conveniently, she also happens to be a digital marketing exec who's spent more than a decade helping retailers drive shoppers to their sales.One big perk of her job? She knows exactly when and where to score the best bargains. (She has a literal list.)So I was genuinely surprised to hear her take on Prime Day:"It's not something I personally shop."But what about the deals? Aren't they the lowest prices available all year? Amazon's generous gift to members of its Prime program (priced at $139/year)?That's when Katheryn started telling me all about how Prime Day really works, what Amazon designed it to accomplish, and how to navigate it with your eyes open.Here's everything you need to know about Amazon Prime Day...1. Prime Day Is About Clearing Warehouse Inventory, Not Saving You MoneyAmazon didn't launch Prime Day to thank customers. It launched the event to solve a logistical problem.As Katheryn explained, "It started as an inventory cleanout — that first Prime Day was essentially just a big yard sale."At the time, Amazon was rapidly expanding both its in-house product lines and its fulfillment program — two things that require a whole lot of shelf space.Back in 2015, the company needed to clear out inventory... fast. So it created a one-day sales event that felt like a celebration, but functioned like a clearance rack. And it was a runaway success — shoppers bought in droves (outpacing even Black Friday sales), Amazon's own devices flew off the shelves, and independent sellers saw record-breaking sales. It was obvious the company had struck gold.Since then, Prime Day has grown into a full-blown retail holiday. But the mission hasn't really changed — the event is still largely about moving physical products, just with more polish.It also gave Amazon something it didn't really have before: a reliable summer revenue bump. "Amazon created its own seasonal tentpole event that acts as an extra lever controlling revenue," Katheryn told me. "It's like having a button that says 'Push Here for More Money.'"When you understand that, it changes how you look at the deals being pushed front and center.2. Some Prime Day "Sales" Aren't Actually DiscountsWith all the flashing banners and deep markdowns, it's easy to assume Prime Day is one of the smartest times of year to save money.But Katheryn let me in on an unfortunate little secret — some of Prime Day's big "deals" don't actually offer much of a discount. And many aren't even the lowest prices of the year."Generally, shoppers want to see big discounts — I'm talking 20% off or more. So, a month or two before the event, Amazon will start incrementally raising prices on certain products they know will be big Prime Day sellers so it can offer a deal for 20%, 30%, even 40%. It's a pretty common tactic called price anchoring."Amazon's price anchoring strategy plays right into our psychology. We see the big red markdown and assume we're saving — but unless you've been tracking the price over time, you probably won't know.3. Some Deals Are Genuinely Good — For You and AmazonTo be clear, you can find plenty of genuinely good deals during Prime Day; retail analysts have confirmed that some Prime Day sales actually represent the lowest price of the year. In other words, it is possible to walk away with serious savings.But Katheryn was quick to point out that Amazon isn't offering these deals out of the goodness of its corporate heart."Amazon doesn't mind taking a hit on its first sale if it gets you into the Amazon ecosystem."You see, Amazon's Prime Day deals are exclusively available for Prime members. That means if you want to save $45 on Waterpik’s $100 water flosser, you'll first need to sign up for Amazon's $139/year membership. (There's also a $14.99/month plan.)Sure, you can cancel your plan any time after Prime Day — but Amazon's hoping you won't. The company is betting you'll get used to two-day shipping, start streaming more shows, maybe even ask Alexa to reorder your toothpaste.The other place Amazon doesn't mind taking a loss? Its own devices.Katheryn explained that Amazon-owned brands like Fire, Kindle, and Ring tend to see the steepest discounts — not because Amazon's being generous, but because those devices are built to bring you back. Most of them are Alexa-enabled, which means they can nudge you about new deals or even place orders for you. And they often lead to paid add-ons like Kindle Unlimited, Fire Kids+, or Ring's subscription plans.So yes, if you were already planning to buy an Echo Dot or a Ring camera, Prime Day might be the perfect time. Just know that a great price isn't a favor. It's a foot in the door.4. Urgency Is a StrategyIf you've ever felt that twitchy little jolt of adrenaline during Prime Day, you're not imagining it. That sense that if you don't act right now, you'll miss out forever? That's not a bug — it's part of the strategy.This is how Prime Day pushes people to buy things they hadn't even planned to shop for. And it works — because our brains are wired to react to scarcity and urgency.The countdown timers. The "lightning deals." The "Only 3 left!" labels. When you add it all together, it can transform even the most prudent shopper into an impulsive buyer. (I would know; last year, the lure of a lightning deal convinced me to buy a set of $200 pans that weren't in my budget.)So I was surprised to learn that lightning deals aren't just a clever sales tactic — they're genuine inventory cleanouts. "That's actually not a marketing gimmick," Katheryn told me. "These are items where Amazon doesn't care so much about the price, as long as it sells X amount."Smart Shoppers Still Shop Prime Day — They Just Do It DifferentlyBy the time she finished explaining how much of Prime Day is designed to benefit Amazon first (and shoppers a distant second), I was half-convinced we should all just unplug our Wi-Fi for the week. But Katheryn assured me there's a way to shop it smart... if you know what you're doing.Here's her friendly, insider advice for making the most of Prime Day — on your terms, not Amazon's:- If you wouldn't buy it at full price, don't buy it just because it's 40% off. "That's a recipe for spending money, not saving it."- Don't let FOMO get the best of you. If you see something you want but can't afford today, make a plan to start saving now. "Many Prime Day discounts are basically identical to the Black Friday discounts you'll see a few months from now."- Follow deal-hunter accounts on social media. (Katheryn personally recommends @IGNDeals.) "Companies have teams of 'deal curators' whose entire job is to track prices, identify the best deals, and then tweet or post about it. They'll do all the heavy lifting for you."- Keep an eye on items you're interested in. In the months before Prime Day, add items to your cart or wishlist, but don't actually purchase them. "Amazon will send you notifications whenever the price changes," allowing you to follow the price history for yourself. (Just make sure notifications are turned on.)- Don't forget to compare prices at the other big-box retailers. "Target, Walmart, Best Buy — they're all running counter sales the same week, with even bigger discounts on certain items. If your main goal is to maximize your savings, you really have to check them all."Katheryn's biggest insider tip for saving money on Amazon's Prime Day deals? "It's about shopping with intention."Make the Most of Your Money with Professional InsightsWould you like practical tips and tools to help you navigate today’s economy? Zacks' free Money Sense newsletter cuts through the jargon and gives you actionable tips to help you save money, slash taxes and build a lasting legacy.From must-see investment ideas to practical budgeting strategies, Money Sense can help you grow your wealth intelligently. Subscribe today and start achieving your next financial goal! It’s absolutely free to sign up.Get Money Sense absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks