Is Amazon's Prime Day a treasure trove of deals or a cunningly disguised spending trap? You're certainly not alone in wondering. Mark your calendars - this year's Prime Day stretches beyond a single day, kicking off on Tuesday, July 16th and running for 48 hours through Wednesday, July 17th. While "millions of deals" are advertised, the reality can be a maze of confusing discounts, coupled with the pressure of limited-time Lightning Deals that can fuel the potential for impulse purchases. But fear not! Whether you're shopping for yourself, others, or your business, this guide equips you with budgeting tips, smart shopping strategies, and even tax benefits to navigate Prime Day 2024 with confidence and maximize your savings.
Planning for Prime Day Success
Set a Budget: Before the event, decide on the maximum
amount you are willing and able to spend. Setting a budget will help you stay
disciplined and prevent impulse buying.
Identify Needs vs. Wants: Make your shopping list and
distinguish between genuine needs and fleeting desires. Prioritize purchasing
items you genuinely need or have been planning to buy, rather than getting
swayed by attractive deals on unnecessary products.
Start Early: Some Prime Day deals might be available
leading up to the event. Create an Amazon Wish List
and/or set alerts for the specific products you're interested in so you'll get
notified when they go on sale and don't have to spend time digging for the things you're looking for.
Compare Prices: Don't rely solely on Prime Day deals. Use price comparison tools like Google Shopping or CamelCamelCamel to track historical pricing and ensure you're getting the best offer. Extensions like Honey can automatically search for coupon codes, helping you score additional savings.
Other Amazon Areas: Check out Amazon Warehouse Deals, which may include additional discounts on open-box and pre-owned items. The Amazon Outlet section offers year-round discounts, but often features extra savings during Prime Day.
Maximizing Prime Day for Individuals and Business Owners
Credit Card Rewards: For both individuals
and business owners, strategically using credit cards during Prime Day can
yield significant rewards.
Office Equipment and Technology: Prime Day often
features significant discounts on electronics and office equipment. Business
equipment purchases can often be written off or depreciated, potentially
lowering your tax liability.
Bulk Purchases for Inventory or Supplies: If your
business relies on products that are frequently discounted during Prime Day,
consider making bulk purchases to stock up on inventory or office supplies. Consider
items that can be used for employee gifts or incentive programs, marketing or
shipping and packaging supplies.
Charitable Donations: Consider using Prime Day to
purchase items for charitable donations. This can provide a dual benefit of
supporting causes you care about while potentially reducing your tax liability.
Section 179 Deduction: The Tax
Cuts and Jobs Act allows businesses to deduct the full cost of qualifying
equipment purchases up to a certain amount in the year they are placed in
service. Research if your Prime Day purchases qualify for this deduction
Business Expense Tracking: With the potential volume of your purchases during Prime Day, it's crucial to maintain accurate records for tax purposes. Make sure you are categorizing and tracking all Prime Day and any other online purchases for easier tax filing.
Prime Day vs. Other Sales Events
Walmart announced the "Walmart Deals" event, starting Monday, July 8 (at 5 p.m. ET) through Thursday, July 11. Advertised as their "largest savings event ever," the retailer is promising thousands of deals on popular items from electronics, home, toys, travel, back-to-school must-have items and more.
Target is gearing up for their Target Circle Week event, running from Sunday, July 7 through Saturday, July 13. Special prices are available to members of Target Circle, which is free to join, while their paid tier called Target Circle 360 offers unlimited access to same-day delivery with Shipt, with no delivery fees on orders over $35, and the annual subscription cost will be discounted 50%.
Best Buy will hold its "Black Friday in July" event, also its "biggest sale of the summer" from Monday, July 15 to Wednesday, July 17, with members of the paid tiers of its loyalty program getting access to exclusive deals.
Prime Day vs. Black Friday: both events offer steep discounts on big-ticket items like Apple Watches, iPads, and 4K TVs. Black Friday has the advantage of involving more retailers, leading to increased competition and potentially better deals. Prime Day is more centralized to Amazon and major retailers, making it an excellent time to buy Amazon-owned brands like Fire TVs, Echo speakers, and Kindles at their lowest prices.
Prime Day vs Cyber Monday: Prime Day is exclusive to Amazon Prime members; Cyber Monday involves a variety of retailers offering online deals, including Amazon. One key difference is the timing - Prime Day typically occurs in July, while Cyber Monday is in late November, making it more suitable for some when it comes to holiday shopping.
Conclusion: A Calculated Spending Approach
Prime Day can be a fantastic opportunity to score great deals on essential items. By planning, creating a budget, and employing smart shopping strategies, you can maximize your savings without jeopardizing your financial health. Remember, responsible shopping leads to long-term financial well-being, making every day a "Prime Day" for your financial future.
