The Challenges Facing Amazon this Prime Day

So, can Amazon actually pull off Prime Day this year? It’s certainly possible but there are a number of factors that will make or break it. Amazon needs to ensure seamless back-end delivery while managing the ways warehouses have been affected by the pandemic. Top sellers can no longer all be stored in one place but must be scattered around the warehouse, and pickers may have to follow one-way systems or avoid busy aisles, which could slow them down. On the flip side, promotional periods often come with a peak in returns as consumers take advantage of the sales to order products they later reconsider. The effects of the pandemic have caused returns to take longer as items must be quarantined before being sent back out, meaning that returned items can’t be immediately restocked. To fulfil orders quickly and manage the exceptional demand that’s expected, Amazon will need to rely on a fully optimised, integrated end-to-end order management system (OMS) and warehouse management system (WMS). Stock integrity will be crucial this year – especially when selling via third parties – and leveraging seamless connected technology is the only way to achieve this. There are also factors at play that are out of Amazon’s control. Global supply chains are breaking down, lead times are being extended and last-minute cancellations are unpredictable. Amazon may have economies of scale and a loyal customer base dedicated to its low prices, but are they willing to wait for products sourced from the Far East or will they instead favour locally sourced and higher-quality – but more expensive – items? Only time will tell.