Amazon counts cost of delayed Prime Day

Amazon could lose out on revenue of more than $100 million as it is forced to delay Prime Day by the Coronavirus crisis.

The e-commerce giant’s annual summer shopping festival will now be pushed back until at least August, according to documents seen by Reuters.

Alongside numerous promotions for other items, the delay will mean around five million of Amazon’s own devices - like its Echo smart speaker - will go unsold.

In the worst case scenario, this could cost Amazon $300 million, stated general council David Zapolsky in a note to executives, but it is more likely to mean a $100 million revenue hit.

Launched in 2015, Prime Day usually takes place in July. Last year’s event was extended to 48 hours and saw Prime members purchase 175 million items, compared to the 100 million items sold across 2018’s 36-hour promotion.

The note to executives also laid out plans to enforce social distancing at its sites, after protests were held by workers last week due to worker safety concerns around the impact of COVID-19.

“We’re looking at lower performing sites for social distancing and taking action to hold them accountable”, it read. “Two strikes and you’re out.”

The document also noted Coronavirus concerns around its Amazon Web Services cloud computing arm. Amazon is constructing several new data centres in Ireland, but the note expressed the business was “worried about the government shutting down or employees not being willing to work”.

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