While we are seeing reports regarding the postponement or cancellation of every major event this year, we have a new and potentially concerning report. Now, it is seen that the best service right now is e-commerce which is helping customers get what they want despite the fact that almost everything else is closed due to lockdown. However, we know that e-commerce companies are also burning money since they have to deliver essential products only which have a pretty low margin per each sale. But it is also understood that margin is not something any business should focus on right now.
Coming to the report regarding Amazon, one of its biggest one-day sales of the year also called the Amazon Prime Day sale is reportedly being delayed this year. For people who are unaware regarding Amazon Prime Day, it is a 24-hour sale by Amazon as part of its founding anniversary every year. It is also seen as one of the best days to shop for customers because it is when the best deals are available after the Black Friday week and the Holiday season.
The report also mentions that Amazon Prime Day which usually takes place in July every year is reportedly getting delayed to at least August. Also, Amazon is expecting a hit of $100 million “from excess devices it might now sell at a discount” as reported by Reuters who have seen internal meeting notes from Amazon.
While Amazon expects a hit in revenue due to delay in Amazon Prime Day sales, it also says that the video-on-demand service which is Prime Movies will have $100 million more in revenue for the first quarter since the people watching shows online has gone up quite drastically. Amazon has also stopped its affiliate program right now due to the ongoing Coronavirus pandemic which also means they are expecting a loss of revenue.