Market Overview

Amazon Reschedules Prime Day to September As It Tries To Restore Pre-Pandemic Operations

Amazon Reschedules Prime Day to September As It Tries To Restore Pre-Pandemic Operations

Amazon Inc. (NASDAQ: AMZN) is rescheduling its Prime Day sale to September due to pressures on its warehouses caused by rising pandemic driven demand.

What Happened

Moving the two-day annual Prime Day sale to September is one of the measures Amazon is taking in an attempt to return to pre-pandemic business operations. The e-commerce retailer is also allowing unlimited shipments of nonessential goods back to its warehouses, according to the Wall Street Journal.

The Prime Day event is usually held in July, and the sale features deeply discounted goods. The postponement to September is a result of the increased pressure on Amazon’s warehouses caused by the increased demand.

Why It Matters

In April, the company began restocking nonessential items from third-party sellers at an increased pace.

Amazon is preparing to ship a wider variety of merchandise. There are indications that the company can now ship orders more quickly, and there is more room to store inventory, sources revealed to the WSJ.

The e-commerce retailer has already begun one-and two-day deliveries of nonessential goods on its platform. These had been suspended for two months in the United States due to the COVID-19 pandemic.
Despite the surge in demand, the increase in hiring during the pandemic, hazard pay for staff, and shipping costs, negatively affected Amazon’s income, which fell 29% in the first quarter.

Walmart Inc. (NYSE: WMT) is offering stiff competition to Amazon and has the advantage of being able to offer curbside pickup, which is cheaper than shipping to the door, according to WSJ.

Walmart saw a 74% increase in online shopping and a 4% rise in earnings. 

Price Action

Amazon shares traded 0.21% higher at $2,451.80 in the after-hours session on Thursday. The shares had closed the regular session 2.05% lower at $2,446.74.


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Amazon Prime Day Covid-19 Jeff Bezos The Wall Street JournalNews Retail Sales Tech Media Best of Benzinga