Tags: amazon | delay | prime | day | sales | coronavirus

Amazon to Delay Prime Day Sales Event Due to Coronavirus

Amazon to Delay Prime Day Sales Event Due to Coronavirus
(Dreamstime.com)
 

Friday, 03 April 2020 05:16 PM

Amazon.com Inc. is postponing its major summer shopping event Prime Day at least until August and expects potentially a $100 million hit from excess devices it may now have to sell at a discount, according to internal meeting notes seen by Reuters.

Amazon (AMZN) declined to comment. Prime Day, a marketing event Amazon started in 2015 to drum up sales during the summer shopping lull, has previously occurred in July, though the company never publishes the date far in advance.

The notes, in which Amazon's general counsel wrote critical comments about a fired employee previously reported by Vice News, offer a rare insight into strategic planning inside the world's largest online retailer.

They reflect how the company is rapidly responding to business risks from the novel coronavirus, which has caused a surge in demand for household staples and led to several demonstrations by some Amazon warehouse workers fearful of contagion.

The Prime Day decision means Amazon will have 5 million extra devices for sale, items like its voice-controlled Echo speakers that have gained wide popularity. It also affects third-party merchants who have come to depend on Amazon's platform for revenue.

"We probably have to promote sooner, which will be difficult if we’re capacity constrained," General Counsel David Zapolsky wrote in notes from a daily meeting of Amazon executives. The notes said this would result in a $300-million impact "worst case," with a $100-million hit being more likely.

It was unclear how solid the estimates were or what the impact to Amazon ultimately would be. 

© 2020 Thomson/Reuters. All rights reserved.


   
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Amazon.com Inc. is postponing its major summer shopping event Prime Day at least until August and expects potentially a $100 million hit from excess devices it may now have to sell at a discount, according to internal meeting notes seen by Reuters.
amazon, delay, prime, day, sales, coronavirus
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2020-16-03
Friday, 03 April 2020 05:16 PM
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