Delayed Shipping Spoiled The Fun For Amazon.com, Inc. (NASDAQ:AMZN) Customers
Amazon.com, Inc. (NASDAQ:AMZN)’s stock fell on Friday by 1.56% and closed at $398.08. However during the session, the stock surged to $405.63 levels to mark fresh 52 week high. The stock is up by more than 60% in trailing twelve months. Along this holiday season, while the online retail giant posted booming sales growth, the delay in delivery is certainly alarming from the business point of view.
Buzzing Sales Growth
Amazon.com, Inc. (NASDAQ:AMZN) recently posted more than 39% year over year sales growth on Cyber Monday which also was reported to be the best ever shopping weekend for Kindle e-readers and Kindle Fire tablets. With a response time of just about 9 seconds, the Company surpassed its previous best for the new Mayday button, on Christmas day. Amazon.com, Inc. also reported to have sold more than 1,000 units of Sony Corporation (ADR) (NYSE:SNE)’s PlayStation 4 and Microsoft Corporation (NASDAQ:MSFT)’s Xbox One gaming consoles per minute, during the peak of sales for each console.
The retail giant also reported that more than one million new customers signed up for annual membership of Amazon Prime, its free two-day shipping program.
The Dumped Deliveries
However, the overwhelming late season orders made it difficult for Amazon.com, Inc. (NASDAQ:AMZN) and its trusted delivery service partner United Parcel Service, Inc. (NYSE:UPS) to deliver packages by Christmas this year, leaving many people devoid of their Christmas gifts. Partly these delays could also be attributed to Amazon’s decision to extend its free shipping deadline to Dec. 22nd.
CNN Money reported that Amazon.com, Inc. will refund the shipping charges and will also give a $20 gift card to those who didn’t receive their packages on time. However United Parcel Service, Inc. (NYSE:UPS) was not available for comment and Amazon.com, Inc. spokeswoman did not comment on whether UPS would reimburse these costs to Amazon in any proportion.