Amazon will reportedly delay its annual Prime Day online shopping extravaganza due to concerns over COVID-19.
According to Reuters, Amazon plans to postpone the 2020 edition of Prime Day until August or even later. Since its launch in 2015, Prime Day has always occurred in mid-July.
Reuters reported that notes from a recent internal Amazon executive meeting indicate the e-tail giant’s general counsel anticipates the delay will cost it anywhere from $100 million to a worst-case $300 million.
“We probably have to promote sooner, which will be difficult if we’re capacity constrained,” Amazon general counsel David Zapolsky is quoted as saying in the notes. Amazon would have 5 million extra technology devices it would need to sell at discount if Prime Day were to be postponed. The company has seen surging demand, especially for household and sanitizer items, since the COVID-19 pandemic hit the U.S. in February 2019.
A postponement would also negatively impact Amazon third-party sellers, who participate in Prime Day sales. Amazon, which declined comment for the article, does not release Prime Day results, but analysts have estimated that the 48-hour Prime Day 2019 event generated $6 billion or more in gross merchandise volume.