Amazon.com Inc. has reportedly scheduled its multibillion-dollar Prime Day event for September and scaled back some shipping caps, a potential sign the company’s supply chain is starting to return to normal operations.

Amazon in March stopped processing nonessential third-party merchandise to free up warehouse capacity for orders of household essentials such as toiletries. Not long after, a report emerged claiming that the company was deliberating a delay for Prime Day. It’s an online shopping event Amazon normally holds on July that generated an estimated $7.16 billion in merchandise sales last year.

The Wall Street Journal reported today that Amazon decided this week to host the event in September. The decision apparently coincides with the fact that the company has started upping the volume of nonessential goods entering its supply chain. According to the Journal, Amazon last month allowed third-party sellers to ship nonessential items once again to its warehouses and recently lifted inventory caps on the volume of goods they can send.

“We removed quantity limits on products our suppliers can send to our fulfillment centers,” an Amazon spokesperson said in a statement confirming the move. “We continue to adhere to extensive health and safety measures to protect our associates as they pick, pack and ship products to customers, and are improving delivery speeds across our store.”

Amazon stated in its most recent earnings call that it expects to spend $4 billion on costs related to COVID-19 this quarter, including personal protective equipment for workers and facility cleaning. The company is also setting up an in-house coronavirus testing lab.

Amazon’s revenue rose 26% from a year ago, to $75.45 billion, in the first quarter thanks to increased e-commerce orders from users. But the company saw profits dip 30% in the same period as a result of the steps it has taken to adjust to the new situation. On top of enhancing safety procedures in warehouses, Amazon has hired 175,000 additional supply chain staff to cope with the surging customer demand.

The increased strain on logistics networks is being felt outside Amazon’s ecosystem as well. One side effect, besides more e-commerce order delays, has been a surge in funding for supply chain startups. DispatchTrack Inc., which makes a platform for managing last-mile deliveries, raised $144 million last week following a $40 million round for warehouse automation provider Covariant and a $279 million round for Singapore’s Ninja Van. 

Photo: Amazon/YouTube