Amazon suffers major Prime Day labor problem | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Amazon (AMZN) just wrapped its annual Prime Day event, and according to the retailer, it was its biggest Prime Day ever.

Amazon opted for a longer Prime Day than usual this year, making it four days long, which probably helped Amazon quite a bit with what it calls “record sales” – although it did not disclose the exact amount it made.

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Amazon also emphasized that its independent sellers broke sales records, which is likely highlighted in hopes of combating negative press collected earlier this year about the impact of tariffs on small businesses that operate on Amazon.

It quoted the small beauty brand Olivia Garden, who told Amazon, “Prime Day 2025 was our most successful Amazon shopping event since launching our store in 2019,” per co-owner Anne Maza of the small business Olivia Garden.

So perhaps Amazon has proved that its sheer retail power can overcome even the fear of tariffs. Give people enough great deals, offer them for longer than usual, and they’ll still come.

That said, Amazon did struggle with one problem during Prime Day that may point to a flaw in the company’s operational prowess.

Amazon’s Prime Day needed extra help

Amazon wanted this Prime Day to be huge, and clearly was aware that the demand from customers could potentially outweigh its ability to handle it.

So Amazon sent a Slack message to thousands of Amazon employees working in the New York area to ask them to volunteer to help with Prime Day, per reporting from The Guardian.

More Retail:

The ask said the company needed corporate volunteers to work two-hour shifts between 10 am and 6 pm on Tuesday through Friday in Brooklyn, where an Amazon warehouse provides grocery delivery services.

The message also stated that volunteers would help to pick items, prepare carts, pack boxes, and prepare bags of groceries, and promised to “boost morale with distribution of snacks.”

However, employees were also told they could step into conference rooms as needed to take meetings and calls, as they were still expected to maintain their regular job duties.

This is not the first time Amazon has done this, according to a statement from Amazon spokesperson Griffin Buch.

“This support is entirely optional, and it allows corporate employees to get closer to customers while enabling our store teams to focus on the work that’s most impactful,” Buch said.

Amazon’s grocery restructuring

While Amazon CEO Andy Jassy has said he’s bullish about Amazon’s grocery business, the company has certainly had a challenge finding its footing in the space, as Amazon Fresh has had its share of struggles in the past.

In 2023, Amazon suspended the opening of new Amazon Fresh stores, closed several locations in London, and laid off employees.

The company also further brought Whole Foods executives into the fold. Ex-Whole Foods CEO Jason Buechel moved to Amazon in 2022 to head up its grocery division, while 30-year Whole Foods veteran Karen Christensen now leads North America Amazon Fresh and Amazon Go.

For Prime Day 2025, Amazon prepared several deals to entice customers to use Fresh, including a free 90-day trial for new customers and $30 off deliveries for current members.

However, some critics complain that Amazon Fresh has an identity issue that discounts won’t solve.

“Amazon became successful being an innovator offering better buying options for buying goods. It looks like Fresh was started as a follower in a low-margin, highly competitive industry where they have no advantage on buying the branded items they sell,” writes Sax Maritime president Joseph Sabbage in a story for Supermarket News.

“The consolidation of Amazon’s retail locations will only show improved returns if changes are made, especially at Fresh,” Sabbage continued. “If they continue to open and operate Amazon Fresh stores without major changes they will continue to lose money.”