Amazon sets Prime Day for September as recovery continues
Updated: May 29, 2020
Amazon’s moves to return to pre-coronavirus levels of operation has seen a new day penciled in for Prime Day in September.
The annual two-day event was scheduled for July before it was postponed, but is now expected to be moved to September according to the Wall Street Journal, although the switch has yet to be confirmed by Amazon itself.
That move will be welcomed by Sellers who will be further encouraged by moves to return its delivery service to pre-Covid-19 levels. Last week the company allowed its warehouses to accept unlimited shipments of non-essential goods in a crucial move back to normal operation levels.
In recent weeks and months it was forced to accept only essential goods such as PPE and cleaning products, such was the huge surge in online demand as the pandemic broke out. Online shopping hit new peaks with shops closing, affecting the usual speed of delivering and pressing Amazon into its change.
But Amazon warehouses have now been told they can accept non-essential products again - albeit with certain caps initially over how much can be sent out.
It might still take months for the company to return to its previous levels, but Thompson and Holt managing director Craig Gedey believes these are steps in the right direction.
Gedey said: “Despite a surge in online trading generally because of the closure of shops, these have still been very difficult times for many Amazon Sellers. Unable to use Amazon warehouses to ship their products, it has forced many into radical changes or worse.
“In light of that, these recent moves are welcome for traders on Amazon. Prime Day can be a hugely lucrative two-day market for many, and the loss of that would have dented many financial projections. News - although still unconfirmed - that it will return in September should be welcomed.”
I thought Amazon Prime day was in August?
Reuters had reported in April that Prime Day would be postponed until August and that the company suffer $100 million losses from the excess devices - such as Amazon Echo speakers - it may have to sell at a discount.
But it also affects third-party merchants who have come to depend on Amazon's platform for revenue.
“That is important not to forget,” Gedey added. “Prime Day can act as a very welcome income spike after what has been a very trying time for many Sellers.”
While Amazon is returning its warehouse shipments to normal levels, it may still be months more until deliveries to customers can reach pre-pandemic speeds. Prime one-day delivery has yet to be reinstated for many products, although that could change this week.
According to research by Rakuten Intelligence, Amazon’s shipping speeds began to improve again in April - the average delivery time has been reduced from more than six days in late March to three days by April 13.
But figures have also shown that Amazon made losses in the first quarter, with net income falling by 29 percent from 2019, due to a combination of factors connected to the coronavirus pandemic.
Sellers still being caught out by Price Gouging Policies
A lot of Amazon Sellers have also been suspended after being accused of price gouging (taking advantage of the COVID pandemic), it is estimated that over 500 sellers a day are suspended for this reason alone. It is not only Amazon who are suspending sellers for price gouging, we have also see an increase in eBay sellers suspended for price gouging too.
If you have found yourself suspended while selling on Amazon, contact Thompson and Holt for a free LiveChat to get your Amazon Seller business back online as quickly as possible.
Thompson and Holt are also offering a free months trial of their Monitor and Protect service to help sellers prevent a suspension of ASINs or an their account during the COVID pandemic, more information on how to protect your Amazon seller account from a suspension can be found here.