Amazon is facing a ‘high-stakes shipping gauntlet’ just months after recovering from widespread delays, as it attempts to pull off its biggest Prime Day ever
- Amazon’s 48-hour Prime Day event started early Tuesday morning.
- Moody’s analyst Charlie O’Shea told Business Insider that Prime Day will serve as a litmus test to see if Amazon is able to keep up with its exponential growth.
- The sales event will trigger a surge in orders that will weigh on Amazon’s delivery network, with Moody’s estimating that the company’s fourth-quarter shipping expenses could reach nearly $20 billion.
- “They’re doing the best they can,” O’Shea said. “It’s almost like trying to plug a dam with your finger.”
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Amazon just kicked off what Moody’s says will likely be the biggest — and most challenging — Prime Day of all time.
The e-commerce giant’s 48-hour Prime Day began early on Tuesday morning. The annual sales event is later than usual this year, with Amazon postponing Prime Day due to the coronavirus pandemic. But Amazon’s decision to delay the massive day of sales does not guarantee the company will be able to escape a tangle of logistical challenges and shipping delays — which could infuriate customers.
“With the 48-hour window for Prime ‘Day’ imminent, and Amazon sure to face logistical challenges due to the inevitable surge in orders, the online leader is once again facing another high-stakes shipping gauntlet,” Moody’s analyst Charlie O’Shea wrote in a report on Monday.
O’Shea told Business Insider in an interview that Prime Day is the lastest litmus test for Amazon’s exponential growth.
The competitive landscape “has never been tougher,” O’Shea said, as rivals like Walmart, Target, and Costco have thrived during the pandemic in part because of their ability to mix online sales with brick-and-mortar stores. Amazon, meanwhile, struggled with delays