Amazon.com Inc sales have been affected in the recent wake of the pandemic outbreak, reports Feedvisor’s customer sales survey. Under the guidelines to contain COVID-19 outbreak, nations across the world issued shelter-in-place orders, and non-essential businesses were forced to shutter their doors. Amazon’s eCommerce sales hit an all-time low in a matter of a few weeks.
In an analysis of Feedvisor customer sales data, the numbers are quite shocking. Beauty and Personal Care and Electronics have seen sales increases of 17% and 3%, respectively, since Feb. 3, while Clothing, Shoes, and Jewelry is down 11% and Home and Kitchen is flat at 0%.
With lockdown being enforced across the nations, citizens have been stocking up on necessities and groceries, which has, in turn, led to hoarding of all kinds of stuff. The ensuing shortage of foods, groceries, toilet paper, hygiene products, and medicines has turned more customers to the online medium of deliverance.
COVID-19 will have a lasting impact on the e-commerce retails, and with the more feasibility of safety, e-commerce sites are staggering to keep up. According to Goldman Sachs data, nearly 500,000 brick‑and‑mortar retail locations have temporarily closed due to COVID‑19, and, in a survey of 1,500 small businesses, 50% said they would not be able to continue operating for more than three months in the current climate.
Furthermore, Amazon’s Prime Day is one of the most alluring and discounted events on the site and accounts for significant revenue annually for the company. However, in light of the recent events, they have decided to scrap the event.
Launched in 2015, Prime Day has expanded from a one-day event to a 48-hour sale last year, with 18 countries participating. Scalping exclusive discounts for over 100 million Prime Members, Prime Day has been an incentive to lure customers into Amazon’s ecosystem, as well as promoting Amazon-owned devices.
General Counsel David Zapolsky was quoted saying, “We probably have to promote sooner, which will be difficult if we’re capacity constrained.” The declining number of hands-on workers has disrupted the services and a $300-million impact “worst case,” with a $100-million hit being more likely is expected in this month.
The world groaning in the worst outbreak of the century has lead to an unprecedented economic backlash, which is expected to hit all the sectors equivocally. However, the company predicts a roundabout compensation of all the gross loss within the spring of next year.