Amazon's Prime Day retail event is expected to generate $14 billion in sales this week, according to projections from Adobe Analytics.

The two-day event, scheduled for Tuesday and Wednesday, could see spending rise by 10.5 per cent compared to last year's Prime Day.

Adobe predicts that shoppers will spend $7.1 billion on Tuesday alone, marking an 11.3 per cent increase from the previous year. Wednesday is forecast to bring in $6.9 billion, up 9.2 per cent year-on-year.

The online retail giant began hosting Prime Day a decade ago, typically in July. While Amazon doesn't disclose total sales figures for the event, it reported that the first day of Prime Day 2023 was its biggest sales day ever.

This year, Amazon has been advertising pre-Prime Day deals since early July, focusing on clothing, back-to-school items, wellness products, and electronics. The company has shifted the event five days later on the calendar compared to last year.

Adobe expects Amazon to offer significant discounts across various categories, including 22 per cent off electronics, 20 per cent off clothing, 17 per cent off home goods and furniture, and 11 per cent off sporting goods.

The Prime Day phenomenon has transformed July into a competitive retail period, with rivals like Walmart and Target launching their own discount events to capture a share of the estimated $38.8 billion that Americans are projected to spend on back-to-school merchandise this summer.

Vivek Pandya, Adobe's lead insights analyst, said: "We are expecting really strong momentum for back-to-school. Shoppers are now more willing to spend and have started to use Prime Day as a back-to-school shopping opportunity."

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