The Prolonged Postponement
Global e-commerce giant Amazon recently announced that it will host its annual Prime Day sales event on October 13 and 14. Prime Day, which normally takes place in mid-July, had been postponed due to the pandemic. The event is Amazon’s version of Christmas in the summer, and sales routinely outpace the Black Friday. Moreover, this is the latest that Amazon has ever held Prime Day as it will take place in the fourth quarter for the first time.
The fourth quarter also includes two industrywide holiday deals events including the Black Friday and Cyber Monday. “We think Prime Day this year will be bigger than it has ever been,” said Jamil Ghani, Vice president of Amazon Prime. “It certainly has been an unprecedented year and we have been preparing for what follows all year. We think Oct. 13 and 14 is the right time to kick off a successful and safe holiday season,” he added.
Spotlighting the Products and Hooking New Members
Amazon launched its inaugural Prime Day in July of 2015 to celebrate the company’s 20th Anniversary. Amazon has been lengthening the Prime Day over the past five years, officially extending it to two days and offering preview deals weeks before the big event. The sales event has boosted Amazon’s sales, but most importantly, Amazon uses this event to spotlight its own products and hook new members on its subscription program that more than 100 million people around the world count as an indispensable part of their shopping lives.
Amazon has thrived during the pandemic as consumers bought more goods online and limited their visits to stores. During its latest quarter ending June 30, Amazon reported $88.9 billion in sales, up 40% from the same period a year earlier. Moreover, the net income also doubled during the quarter to $5.2 billion.
Amazon’s decision may prompt brick-and-mortar retailers to begin their holiday sales early this year.
