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Amazon Prime Day Deals Expected to Disappoint as Costs Surge

  • Merchants curb discounts to offset shipping, ad spikes
  • U.S. shoppers will spend $12.2 billion online in two days
Bloomberg business news
Amazon Prime Day Deals Expected to Disappoint Customers
Updated on

The deals during Amazon.com Inc.’s annual Prime Day sale will be stingier this year, according to merchants, thanks to rising shipping costs, higher advertising rates and scarce inventory.

The two-day event, which begins Monday, arrives as the world grapples with the lingering effects of the pandemic. Supply-chain disruptions -- including the Suez Canal shutdown earlier this year and a spike in Covid cases that has hobbled two of China’s busiest ports -- have pushed up costs and made Amazon suppliers wary of selling too much during a profit-crushing sale. Many say they’re also holding back inventory in case shipping delays persist through the busy Christmas holiday shopping season.