Amazon Is Delaying Prime Day Until At Least August

Amazon expects a $100 million hit from excess devices that would have been promoted during Prime Day, according to Reuters.
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Amazon  (AMZN) - Get Report is postponing its annual Prime Day sales bonanza as it navigates the impacts of coronavirus. 

Citing internal memos, Reuters reported on Friday that Amazon plans to delay Prime Day until at least August and expects a $100 million hit from unsold devices that it would normally promote during the sales period. 

During Prime Day, which normally happens in July, Amazon promotes its family of Echos and other devices with a range of discounts exclusive to Prime members. The company doesn't disclosure Prime Day sales results, but the research firm Internet Retailer estimated that sales topped $7 billion last year.

The revenue hit from excess devices could be as high as $300 million in the "worst case" scenario, according to meeting notes cited by Reuters. That revenue loss would come from an estimated 5 million devices that it would have otherwise sold. 

Amazon said that it sold more than 175 million items during Prime Day 2019, and that the Echo Dot and Fire TV stick were among the top sellers.

Since it was first introduced in 2015, Prime Day has evolved into a 48-hour sales event that serves multiple purposes for Amazon. 

Analysts have noted that in addition to driving sales of Amazon devices and a wide range of other goods, the event is intended to drive Prime memberships. Amazon doesn't regularly disclose the total number of Prime members, but last reported more than 150 million paid Prime members as of the December 2019 quarter. 

Amazon shares closed 0.64% lower on Friday at $1,906.59 and are roughly flat year to date.