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In light of the Covid-19 pandemic, Amazon has decided to delay its Prime Day event in India and Canada. This decision will have a huge impact on the sales of Amazon in these countries, as well as on international sales across the globe. Prime Day is one of Amazon’s biggest shopping events and normally takes place in July. This delay could mean fewer opportunities for customers to take advantage of deals and discounts, resulting in lower overall sales for Amazon.
This article will discuss how the delay of Prime Day will affect Amazon’s profitability, how the delay may affect customer loyalty, and what strategies Amazon may use to mitigate losses due to the delay. It will also explore possible long-term implications for international shoppers if Prime Day does not occur this year. Finally, it will discuss how other e-commerce companies may benefit from this disruption to gain new customers.
What is Prime Day?
Prime Day is an annual discount shopping event Amazon offers its Prime members. Customers can purchase discounted items from within the Amazon store and products from third-party vendors that have partnered with Amazon. It usually lasts 48 hours and offers discounts of up to 70% on various goods.
The Prime Day event has become increasingly popular in recent years, offering customers the chance to purchase items at discounted prices during the promotion period. The promotion typically occurs during the summer months in countries outside the United States, such as India and Canada. However, this year, due to the ongoing Covid-19 pandemic, Amazon has had to delay its planned Prime Day events in both countries until further notice. This delay has created concern among analysts, who wonder how much of an impact it will have on sales for retailers across India and Canada.
Amazon delays Prime Day in India and Canada as Covid ravages both countries
Amazon’s decision to delay Prime Day in India and Canada due to the Covid-19 pandemic has caused great concern from those expecting to benefit from the shopping event.
As a result, the economic ramifications of the delay are now being questioned. This article will explore the impacts of delaying Prime Day and how it might influence sales for the two countries.
Impact on Amazon
Amazon’s Prime Day delay will harm its profits in two major countries, India and Canada. Initially due to take place in July 2020, Prime Day was delayed until September 21st and 22nd due to the ongoing pandemic. This delay presents a major challenge for Amazon, as both countries depend heavily on the online retail giant for essential items, including groceries and other household necessities.
In India, Prime Day is one of the company’s largest shopping events of the year. It carries a greater importance as it coincides with Diwali–the most important Hindu festival—when ecommerce is usually at its peak. As many areas across India remain locked down or have limited business operations eating into local customers’ disposable income, Amazon will lose vital sales if shoppers choose not to participate in this year’s Prime Day sale. Even if customers come out in large numbers during the extended promotion period, Amazon will see lower profit margins due to reduced demand and market saturation over time compared with their pre-Covid sales figures estimated at 400 million dollars last year.
In Canada, the situation is similar with increased lockdown measures pushing shoppers away from shopping malls or physical store outlets into ecommerce platforms and mobile apps for basic purchases. According to recent surveys and market analysis reports from Bain & Co.,
Canadians intend to spend around 10% less this summer vs 2019 levels when Prime day was held much earlier that year while other major retailers held back or rescheduled their promotional campaigns during this period as well. Payments Canadian reports suggest an average drop of 10% newly acquired customers compared with previous years which will further impact overall conversion rates affecting marketplace sellers who depend solely on platform success fees provided by Amazon coming into play here as well.
A combination of all these factors directly affects Amazon’s bottom line across both countries making it a very precarious situation going forward whereby any strategic level mistakes could lead even more uncertainty than they already face due to Covid-19 pandemic or even worse push away customers who might be enticed by competitive offerings from alternate marketplaces globally including Walmart & Flipkart etc .
Impact on Consumers
Amazon’s annual Prime Day shopping event is commonly known as “Black Friday in July,” due to its large discounts on many products. However, due to the ongoing pandemic and its impact on various countries, Amazon has delayed their Prime Day event for India and Canada this year.
The delays for these two countries could significantly impact consumers, both in terms of their finances and the selection of merchandise available to them. The most immediate effect is that customers in India and Canada will not be able to benefit from significant discounts during this year’s Prime Day sales event. This could prove detrimental for many looking forward to scoring deals on essential items that usually fall under the promotions.
In addition, the delay could mean a reduced product selection available during this time compared to previous years. With businesses severely impacted by the effects of Covid-19, it might be more difficult for suppliers to maintain stock levels during this period resulting in fewer choices for shoppers.
All in all, while Amazon’s decision did not come as a shock seeing how overwhelmed health systems are due to the spread of coronavirus in both countries, it still means that shoppers in these regions may have reduced options when it comes to finding deals and lower prices – capabilities many rely on when trying to make ends meet amidst economic uncertainties brought about by Covid-19.
Impact on Retailers
In light of the Covid-19 pandemic, Amazon has decided to delay their much-anticipated Prime Day sales in India and Canada. Prime Day is a sales event where Amazon offers hundreds of exclusive deals to its members during 48 hours. It is usually considered one of the busiest shopping days for retailers worldwide, but this year it may be different.
For retailers in India and Canada that depend on Amazon’s Prime membership to drive their sales growth, the delayed event may have a significant impact. The delayed event could disrupt inventory planning and marketing plans as customers might not be ready to shop due to Covid-related disruptions in both countries.
Moreover, other retailers who rely on Prime Day’s boost in online spending by customers should also contemplate potential risks associated with the delay—such as decreased foot traffic, lost promotional campaigns, and pricing discrepancies across retail channels caused by competing price targets from Amazon’s discounts during the delayed 48-hour period.
As such, traditional bricks and mortar retailers who heavily depend upon this period as a key part of their sales growth strategy should plan to prepare them well for any subsequent waves of disruption that could potentially arise in India and Canada due to the delayed Prime Day events. As always when preparing for unexpected circumstances, retailers should ensure they have contingency plans such as sufficient liquidity reserves, backup supply chain partners or alternate online channels (if applicable), scenario Planning, etc., ready to go if needed.
Amazon’s decision to delay Prime Day in both India and Canada means that consumers will have a much shorter time this year to capitalize on the discounts, deals, and promotions associated with the event. In addition, by postponing Prime Day, Amazon is signaling to India and Canada and its global consumer base that it is taking the Covid-19 pandemic seriously— which may improve its reputation in the long run.
The delay of Prime Day will likely have a significant financial impact on Amazon. This year’s event was expected to be Amazon’s biggest yet, with sales projected to exceed $10 billion across 45 countries. However, with the company missing out on sales revenue from two of its largest markets— India and Canada— this amount could be significantly lower than initially estimated.
Beyond missing out on potential profits, there are also opportunities for Amazon’s competitors — who may gain extra customers tempted by lower prices during their holidays — as well as losses in advance orders for products which were expected to be fulfilled during Prime Day that can no longer be delivered fast enough due to production delays caused by Covid-19.
Ultimately, while there are short-term losses associated with this decision, by delaying Prime Day until late August (at least in India), it can give more time for companies like Amazon to reconfigure their supply chains and roll out procedures intended both for worker safety as well as product delivery optimization. This can help improve customer satisfaction worldwide and ensure that future Prime Days are profitable for all parties involved.
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