Amazon's Delaying Prime Day, and It'll Cost It $100 Million
Amazon (NASDAQ: AMZN) is having a hard time keeping up with demand these days. It's hired 80,000 new workers in the last few weeks, with plans to hire 20,000 more. It's seeing increased demand for essential categories like groceries, health and household items, baby products, beauty and personal care items, and pet supplies. In fact, Amazon told its third-party merchants it can't accept non-essential items in its warehouses starting in mid-March in order to ensure capacity for more urgent customer needs.
While increased demand for certain items is good, it has some drawbacks. Amazon's Prime Day, which usually takes place in July every year, will likely get pushed back to August at the earliest, according to internal meeting notes seen by Reuters. And with warehouse shelves full of Amazon devices like Kindles, Echo smart speakers, and Fire TV devices, Amazon may have to sell them at a loss. The notes indicate Amazon will likely lose $100 million on about five million devices in excess inventory it expects to hold this summer.
Amazon Echo Dot. Image source: Amazon.
Source Fool.com
