Amazon to take $100m hit as it’s forced to delay Prime Day indefinately

Amazon is set to take a $100 million hit in lost revenues as it is forced to delay Prime Day amid the global pandemic.

Prime Day, the online retailer’s key annual summer shopping festival, will now be pushed back until at least August, according to documents seen by Reuters.

Delaying Prime Day would lead to around 5 million tech devices usually heavily promoted during the event, such as Amazon’s Echo smart speakers, to go unsold.

 

In the “worst case” scenario this could cost Amazon $300 million, its general council David Zapolsky wrote in a note to executives, but was more likely to result in a $100 million impact.

Launched in 2015, Prime Day usually takes place in July, but Amazon rarely released the date of the event this far ahead of schedule.

READ MORE: Amazon Prime Day 2019 breaks new records taking in more than Black Friday and Cyber Monday combined

Last year the longest ever Prime day again broke new records, raking in sales totalling more than last year’s Black Friday and Cyber Monday events combined.

Prime Day 2019, which was stretched over a full 48 hours, saw Prime members purchase 175 million items, up significantly from the 100 million items sold across 2018’s 36-hour sales event.

Amazon does not release financial figures for its events.

The note to executives also lays out plans to enforce social distancing at its sites after numerous protests were held by workers last week over worker safety concerns.

“We’re looking at lower performing sites for social distancing and taking action to hold them accountable”, it read.

“Two strikes and you’re out.”

Aside from its warehouse workers, Amazon also appeared to be concerned about its cloud computing business Amazon Web Services.

In Ireland Amazon is in the process of constructing numerous new data centres, which it now says it is “worried about the government shutting down or employees not being willing to work”.

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