Record-Breaking Amazon Prime Day Expected Despite Economic Concerns: Environmental Impact in Focus

 Record-Breaking Amazon Prime Day Expected Despite Economic Concerns: Environmental Impact in Focus

Amazon's much-anticipated 48-hour Prime Day kicks off on Tuesday, July 16, and is expected to set new records once again. Last year saw shoppers purchasing over 375 million items, up from 300 million in 2022. Experts predict this year will be no different, with record sales expected despite current economic concerns. However, this surge in demand brings significant challenges for transportation systems and the environment.

Virginia Tech economist Jadrian Wooten explains, "We’re expecting to see record sales which highlights the disconnect between consumer confidence metrics and actual spending patterns. Consumer sentiment surveys consistently show apprehension about the economy, which is among the top concerns for the 2024 Presidential race."

Despite these concerns, a successful Prime Day is often seen as an indicator of a robust economy. Wooten adds, "It’s hard to justify this expectation as just pent-up demand. Instead, it suggests that the economy is doing a lot better than people want to admit."

With increased sales comes a rise in shipped packages, putting pressure on transportation systems and contributing to environmental impacts. Shoppers can mitigate this by choosing the “ship everything in one box” option, which reduces greenhouse gas emissions from multiple deliveries and may earn Amazon credits for future purchases.

Md Sami Hasnine, a transportation systems and infrastructure engineering expert at Virginia Tech, has conducted research with Amazon. His findings indicate that increased shipping demands significantly impact the environment. "Medium and heavy-duty freight vehicles are responsible for nearly 7 percent of all greenhouse gas emissions in the U.S.," says Hasnine. "The rise of on-demand delivery has exponentially increased vehicle emissions and congestion on urban and rural roads, also leading to severe safety and health issues for residents."

Hasnine suggests a collaborative approach between supermarket chains, online retailers, and consumers to reduce emissions and road congestion. By predicting household grocery demands using machine-learning models, companies can schedule clustered deliveries, minimizing the frequency of shipments.

About Jadrian Wooten

Jadrian Wooten is a collegiate associate professor at the Virginia Tech Department of Economics, part of the Virginia Tech College of Science, and the author of "Parks and Recreation and Economics." He has been featured in numerous publications and broadcast programs, including USA Today and NBC News. Read more about him here and his insights in his weekly newsletter, Monday Morning Economist.

About Md Sami Hasnine

Md Sami Hasnine is an assistant professor in the Charles E. Via, Jr. Department of Civil and Environmental Engineering at Virginia Tech. His research intersects transportation engineering, econometrics, data science, and psychology, focusing on how human behavior influences transportation decision-making. He develops mathematical models to create smart, sustainable cities to reduce emissions and energy consumption.