Amazon Will Push Prime Day to September From July

The coronavirus pandemic has strained Amazon warehouses, forcing postponement of the two-day sales extravaganza, a report says.
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Amazon.com  (AMZN) - Get Report reportedly will hold its Prime Day bonanza in September, instead of the customary July.

The explosive customer demand sparked by the coronavirus pandemic has strained Amazon warehouses, forcing the postponement of the two-day sales extravaganza, sources told Dow Jones.

The sources also said Amazon will now allow unlimited shipments of non-essential goods, a shift from its pandemic policy. That shows Amazon can now process orders faster, the sources said. But shipping times may still lag pre-pandemic levels.

Reuters reported in April that internal Amazon meeting notes showed the company expected to take a $100 million loss on excess products it would have to sell at a discount if Prime Day was moved to August.

The delay from July means Amazon will have 5 million extra devices, such as Echo speakers, it would have expected to sell sooner. That also could impact third-party sales on Amazon.

Amazon doesn’t disclose its revenue from Prime Day, but has said merchants contributed to $2 billion in sales during Prime Day 2019, Reuters reported.

Morningstar analyst R.J. Hottovy is bullish on Amazon.

“Its disruption of the retail industry is well documented, but the company continues to find ways to evolve its business model,” he wrote in a report this month.

“Its operational efficiency, network effect, and a brand intangible asset give its marketplaces sustainable competitive advantages.”

Amazon shares recently traded at $2,518.77, up 0.83%. The stock has jumped 17% over the last three months, compared to a 12% loss for the S&P 500.  

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