Amazon's annual Prime Day sales bonanza may be further delayed because of COVID-19 concerns, says a new report.
The sales event usually takes place in July, but concerns about supply chain disruptions and managing excess inventory of Amazon devices delayed the event, according to reports from earlier this spring. Now, the Prime Day might be pushed off until October amid a new wave of COVID-19 cases.
Citing an email to Amazon sellers, Business Insider reported that Amazon is placing a "placeholder date" of Oct. 5 on Prime Day sales and promotions, but the company hasn't yet made an official announcement.
Amazon (AMZN) shares closed 0.40% higher on Thursday at $2,890.30.
With COVID-19 and stay-at-home orders triggering a surge in ecommerce demand, Amazon has invested heavily in its response to the pandemic, including hiring large numbers of front-line workers and making testing available at its fulfillment centers.
The company told investors in its March quarter earnings report that it would invest on the order of $4 billion in its COVID-19 response, and was in the process of hiring as many as 175,000 workers to manage the demand for home delivery.
Amazon sold an estimated $7.16 billion worth of goods during Prime Day in 2019, according to Internet Retailer, and the event is also typically used as a promotional vehicle for Amazon's own family of devices and services.
Adobe Analytics estimated that in May, U.S consumers spent an extra $52 billion online because of COVID-19, exceeding typical holiday levels of online spending.
Amazon shares are up 52% year to date.