E-Commerce

Amazon Planning June Discount Event To Jump-Start Sales

Amazon is reportedly planning to hold a “summer sale” event later this month to provide a boost to sellers whose sales are suffering under the weight of the coronavirus pandemic and the delay of the e-tail giant’s annual Prime Day sale. To help them out, Amazon plans to hold a “Fashion Summer Sale Event” on June 22, according to a notice seen by CNBC that was sent to sellers early Tuesday. The event is by invitation only and is expected to run from seven to 10 days, according to the notice.

“We are having the Biggest Summer Sale event to drive excitement and jump-start sales,” the notice says. “To drive customer engagement, we are asking for your participation.” An Amazon spokeswoman confirmed it planned to hold the event of a sale later this month.

“The Big Style Sale is slated to take place later this month and will include seasonally relevant deals from both established and smaller fashion brands,” the spokeswoman said. “We are delighted to help brands connect with our vast global customer base for this event.”

Amazon has been struggling for months to respond to a rush of customer orders during the public health crisis and had to institute many new safety protocols and shipping restrictions to be able to continue delivering food and basic needs. The world’s largest online store is only now starting to bring itself back to some semblance of regular operations and faster shipping times.

Several media outlets recently reported that Amazon’s annual Prime Day event would be delayed until September to allow Amazon to help relieve its warehouses still dealing with a surge in business because of coronavirus-driven stockpiling this spring.

The Amazon sale would come at a time many brands, particularly clothing lines, are desperate to clear merchandise left over from the spring season when spending fell off a cliff and stores were closed. Analysts expect heavy discounting from department stores and clothing chains in June, particularly later in the month, by which time most national retailers will have reopened almost all their stores. Apparel stores saw a sales drop of 89% between February and April.

Amazon recently lifted restrictions on nonessential goods and restored coupons and deals, but it is still dealing with some lingering out-of-stock issues. In April, the company warned investors it would spend $4 billion in the current quarter on coronavirus-related expenses, including “getting products to customers and keeping employees safe.”

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