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Comment by biztos | Hacker News Reader

What about the advertising money already spent?

I read somewhere (sorry, forgot where) that Amazon had been pushing sellers to spend like mad on ads within Amazon.com for Prime Day, apparently it gave you a big edge over whatever the algorithms suggest.

Those sellers will have missed their sales targets, and will consider the ad spend to have been wasted. Will they get it back?

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And vendors who boosted supply based on anticipated sales (both discounts and purchases driven by discounts). Are vendors going to find themselves with thousands of extra widgets on-hand but without the anticipated purchasing frenzy they were counting on to sell them?

Yup, and if you have too much inventory, you can either remove it or sell it at a discount, both are expensive options.

Otherwise you'll get Amazon telling you, "Hey buddy! You sure are using up a bunch space and not selling much. Why don't you not do that? We're limiting the amount of storage space you can use for Q3.

The ad dollars are only spent if the ad is shown to users. If the site isn't up, ads can't be displayed.

A lot of the ads were shown prior to Prime Day . They were to drive traffic to Amazon on Prime Day and not to promote product the day of.

A lot of vendors also advertise off Amazon

I’d like to read that comms doc... “how to explain to your client what happened on pre day.”

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