Amazon is witnessing a surge in their orders due to coronavirus related lockdown. Thus it is being speculated that Amazon might delay its annual Prime Day event that generally happens in July, until September. It is a 2 day summer event that was launched in 2015. It is Amazon’s marquee shopping event. The Amazon representatives chose not to comment on the speculation. There was no reaction on Amazon’s stock as it were up by 0.5%.
Prime day is meant to get new Prime members while promoting and selling products and services. It was being reported that this time due to the corona scare all over the world, Amazon is bound to postpone the event until at least August and it will have to sell the products at high discounts taking a $100 million hit from excess devices.
Though Amazon had said that it will be investing around $4 billion, which is its expected second-quarter profit, on coronavirus-related expenses that includes delivery of essentials at right time and keeping their employees safe. But this pandemic effect is beyond what they had planned and predicted. And even with this big spending, Amazon still cannot predict when their one- and two-day shipping can resume. This is their key factor to have a successful Prime Day event.
Amazon is currently working to make sure all the demands of orders are met and there are no delivery delays. So those are looking for items to buy at a discount, might have to wait a bit more or look for coupon codes to purchase their preferred items at less prices. Consumers are indoors due to the pandemic and there is bound to be surge in online purchases. The company is working to meet this unexpected spike in online orders. They are prioritizing shipments of all the essential items like food, medicines etc at their warehouses.