Amazon has plans to launch a fashion discount event later this month for third-party sellers, reports CNBC. The e-commerce giant is staging the initiative to “drive excitement and jump-start sales” in the wake of the coronavirus pandemic.
The Seattle-based corporation’s merchants are looking forward to the summer sales event after losing revenue due to COVID-19.
Amazon Summer Fashion Sale Details
Amazon told CNBC its upcoming sales would feature “seasonally-relevant deals from both established and smaller fashion brands.”
That said, the conglomerate is still reportedly finalizing details for the as-yet-unnamed initiative. CNBC learned the company sent invitations to select third-party sellers asking them to participate and submit discounts on certain items for 30 percent or more. The news platform also mentioned the style discount sale would run between 7 and 10 days.
Traditionally, Amazon holds a massive sale called Prime Day in mid-summer, but it delayed the event until September this year. The conglomerate made the scheduling change because its logistics infrastructure had been overwhelmed due to coronavirus pandemic related demand.
The firm even temporarily added 175,000 people to its warehouse and delivery workforce in response to the usage surge. Last week, the e-commerce firm announced plans to offer permanent positions to 125,000 of these new hires.
Amazon also recently initiated changes to its online portal, indicating a return to normal operations for the multinational corporation.
Aiding Third-Party Sellers
In early May, Amazon’s third-party sellers expressed concern about their businesses in light of the coronavirus pandemic. As Amazon prioritized the transport of food and household items, it temporarily paused the intake of nonessential products from its partners.
Though the platform began receiving shipments of general goods again last month, its retailers are still stinging from revenue shortfalls.
CNBC talked to Amazon third-party sellers that said the platform’s logistics problems made getting products to customers difficult. Online vendors noted quantity restrictions, and shipping delays took a big bite out of their earnings. As such, the news agency states the digital marketplace’s merchants view the upcoming fashion event as a way to make up for lost time and sales.
While COVID-19 has had a deleterious effect on the global economy, there is evidence to suggest consumers are hungry to shop again.
PayPal recently posted its largest single-day transaction volume on May 1, breaking past black Friday and Cyber Monday records. The corporation ascribed the unexpected usage spikes to consumers having a greater interest in online purchasing. As such, Amazon’s third-party fashion retailers could experience a massive jump in sales because of the forthcoming discount event.
If so, the e-commerce giant should consider expanding its themed pop-up discount initiative to other categories. By doing so, the firm could help a broader range of online retailers and bolster its own coffers. After all, September is still a few months away, and themed discount events would give consumers a good reason to upgrade their PCs, home entertainment systems, and dining room decor.