Amazon's Prime Day shopping event, which kicks off Tuesday, could also impact a number of other e-commerce companies, for better or for worse, according to one Wall Street analyst.
Typically, online retailers see volatility around the e-commerce behemoth's annual event, which is normally held in July but was delayed this year due to the coronavirus pandemic, JPMorgan analyst Doug Anmuth said in a note to clients. The implications for online retailers often depends on the categories that Amazon chooses to promote during the shopping event, he said.
During Prime Day 2019, for example, Anmuth said Amazon offered 60% off a first-time pet food subscription, which Chewy then matched in a bid to compete. EBay ran a sale and marketing campaign that called Amazon out directly during last year's event, holding its own "Crash sale" that mocked when Amazon's website crashed once during a previous Prime Day.
This year, Amazon is already heavily promoting its fashion offering and personal-shopper service, which could have implications for Stitch Fix, Anmuth said. Stitch Fix has not publically announced any rival offers around Prime Day.
Representatives from Chewy, eBay and Stitch Fix did not immediately respond to CNBC's requests for comment.
JPMorgan is projecting Prime Day, which runs Oct. 13-14, will draw revenue of $7.5 billion over its 48-hour course, up roughly 42% from an estimated $5.3 billion in 2019.
With Prime Day delayed this year into the fall, many analysts expect the event will now mark the unofficial start of the holiday shopping season. In the past, it has been on Black Friday, but the day after Thanksgiving has been losing its clout on the retail calendar thanks to the rise of e-commerce. Companies that don't start their holiday deals and ad campaigns soon could end up losing out on market share, according to experts.
More and more sales will be shifting online this holiday season, as Americans avoid crowded spaces and malls during the pandemic. Traffic in retail stores is expected to be down 22% to 25% year over year during the six key weeks of the holiday shopping season, according to ShopperTrak.