Amazon is delaying its annual Prime Day event until at least August, in response to the ongoing Coronavirus pandemic. This is the first time that Prime Day has been put on hold since Amazon initiated the promotional shopping event in July 2015, to attract and reward Prime members.
Prime Day is a major sales and loyalty driver for Amazon, with last year’s event emerging as the largest in history, with sales outstripping its 2018 Black Friday and Cyber Monday sales combined. Its postponement reinforces the continued pressure Amazon faces across its supply chain, as demand for online shopping surges in response to Covid-19. For now, Amazon’s priority remains providing essentials to consumers, forcing it to halt the shipping of non-essential items across its affected markets.
The negative sales impact of Amazon’s Prime Day move remains uncertain, but an impact of USD100 million could occur if Amazon chooses to sell surplus devices at reduced prices in the meantime. Suppliers who had existing promotional plans in place for Prime Day - either with Amazon itself, or with other retailers who often launch competitor promotions during the same time period - should align with their retail partners now to determine the potential impact and new promotional plans, re-aligning supply chains and marketing where needed.
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