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Amazon to Run Summer Fashion Sale Later in June

By Donna Fuscaldo – Jun 3, 2020 at 2:45PM

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Amazon is trying to help merchants out that lost sales during the COVID-19 pandemic.

Amazon (AMZN -1.57%) is gearing up to run a sale in June as a way to shore up business for sellers that have suffered under the weight of the COVID-19 pandemic. 

The summer sales event, which is focused on fashion, will kick off June 22, reports CNBC, citing a promotional document sent to participating sellers. The event is by invitation only and will last seven to ten days.

A woman shopping for clothes online using a tablet.

IMAGE SOURCE: GETTY IMAGES.

An Amazon spokesperson told CNBC the sale will include big and small fashion brands that sell on the tech stock's platform. Merchants were asked to offer discounts of 30% or more and provide a list of items they wanted to sell. 

The sale is intended to help merchants out after the e-commerce giant limited their sales during the pandemic as it dealt with a flood of orders for essential items. Some merchants began shipping directly to customers while others lost sales because of the delays. Last month Amazon began accepting normal inventory into its warehouses but there are still longer than usual delivery times. By running a summer sale Amazon can help those merchants unload inventory that has built up. It may also boost goodwill among sellers if it enables them to make up some of the lost sales. 

Launching a summer sale could also cushion the blow from Amazon delaying its Prime Day event, which typically takes place in July, giving Prime members access to deeply discounted items before the rescheduled Prime Day takes place in the Fall.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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