Amazon reportedly planning ‘Fashion Summer Sale Event’ in June
3 Jun 2020
Amazon is reportedly launching fashion summer sale event on 22 June to “jump-start” sales and help provide a revenue boost for its sellers impacted by the Covid-19 pandemic.
The retail giant notified sellers Tuesday that it's hosting an invitation-only “Fashion Summer Sale Event”, according to a document seen by CNBC. It’s expected to run between seven to 10 days.
“We are having the Biggest Summer Sale event to drive excitement and jump-start sales,” the document said. “To drive customer engagement, we are asking for your participation.”
The company is still in the process of finalising details surrounding the event which has been given the working title of the “Biggest Sale in the Sky”, according to CNBC. Amazon has reportedly asked sellers to submit deals with discounts of at least 30 percent for items by the end of Wednesday.
It comes as Amazon continues to grow its presence on the fashion scene. In October, it hosted its first fashion event called Destination Denim, a four-day omnichannel event based in Berlin. In February, it was revealed that the retail behemoth had been secretly operating a luxury online boutique called VRSNL - and pronounced ‘versional’ - since autumn.
Amazon to host new summer sale event
The new event is likely also aiming to compensate for the postponement of Prime Day, the retailer’s major summer shopping event which usually takes place in July but was delayed until September over Covid-19 concerns.
Many of Amazon’s sellers have been affected by the company’s decision in March to limit the products it sells to only those deemed “essential” in a bid to manage skyrocketing demand during internationl lockdowns.
The company also hired an extra 100,000 employees in the US to meet the surge in online orders.
That surge helped Amazon’s revenue jump 26 percent in the first quarter of the year to an eye-watering 75.4 billion dollars. But it wasn’t all good news for the retailer, with its profits plummeting almost 30 percent to 2.5 billion dollars in the same period.
CEO Jeff Bezos also warned at the time of a potential 4 billion dollar cost for new coronavirus measures, including increased hourly wages and Covid-19 tests for employees. All that considered, Bezos warned that the company could swing to a loss of as much as 1.5 billion dollars in the second quarter.
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