Amazon to Host the Second Prime Day Event of 2022; Third-Party Merchants Already Notified

On Tuesday, June 28, a new report says that Amazon is set to host another Prime-exclusive shopping event in the fourth quarter of 2022. The said event will contain limited-time lightning deals.

Amazon's New Prime Day Event

According to Business Insider, Amazon calls the event "Prime Fall Deal Event," but the e-commerce giant did not specify when it will take place. Amazon only stated that it would happen within the last three months of 2022.

However, there is a possibility that the new Prime Deal even will fall in October, as iMore reported that in 2020, the e-commerce giant hosted its Prime Day sale on Oct.13 and 14, just in time for the launch of the iPhone 12.

The report also noted that several third-party sellers on Amazon had voiced their frustration because of the lack of information given by the company around deals and events.

Some sellers are even required to submit Lighting deals by July 22 and Ship the fulfillment orders by Sept. 22, which does give them a lot of time to prepare.

Amazon's Slowing Growth

Amazon has made a lot of money during the first three months of 2022. However, investors have grown used to the company's impressive trajectory during the peak of the pandemic that they were not able to adapt to the fact that sales are not increasing as fast as they used to.

Despite recording $116.4 billion in sales from January through March of 2022, the company's stock took a dive in after-hours trading, falling by 10% before stabilizing a little higher.

The issue is not underperformance but that the company projected a slower Q2 than analysts had hoped for.

According to CNBC, analysts wanted to see the company projecting $125.5 billion in sales, but instead, Amazon only expects sales to be around $116 billion to $121 billion.

This project illustrates the communications trouble that Amazon is currently facing. The e-commerce giant saw a sudden increase in sales during the first few months of the pandemic in 2020, but investors only saw it as a sign of "slow progress."

Andy Jassy, Amazon's CEO, has tried to set expectations in his letter to the company's shareholders in early June, saying they "realized the equivalent of three years' forecasted growth in 15 months."

The analysts were able to predict the slowing growth of Amazon correctly. The company reported 44$ year-over-year growth in net sales for Q1 2021 and only 7% growth for Q1 2022.

According to Compound Capital Advisors, the first three months of 2022 mark Amazon's slowest Q1 growth ever.

The company also reported its first quarterly loss since 2015, largely because of a $7.6 billion loss on its investment in the electric vehicle company Rivian, which has seen its stock fall in early 2022.

Jassy stated that the company is now focused on "improving productivity and cost efficiencies" throughout their fulfillment network, but it may take some time.

Amazon is not the only company facing issues with shareholders in 2022. According to Bloomberg's Steve Matthews, all the FAANG companies (Facebook, Amazon, Apple, Netflix, and Google" are experiencing a decline in growth.

Related Article:Amazon Prime Day: One More Event Before the Year Ends According to Report

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Written by Sophie Webster