Shares of Amazon.com, Inc. (NASDAQ:AMZN) moved down in afterhours trading as it released that it would give $20 gift cards as well as pay shipping costs for consumers affected by problems at UPS along with FedEx that delayed several Christmas package deliveries.
According to the news, Amazon pledge came following United Parcel Service, Inc. (NYSE:UPS) in particular came under fire for late packages in spite of promises from retailers to meet a December 25 deadline. A number of customers took to Twitter to voice their disapproval, likening one or both delivery giants to the “Grinch who stole Christmas.”
Amazon spokeswoman, Mary Osako stated that Amazon fulfillment centers processed along with tendered customer orders to delivery carriers on time for holiday delivery. They are evaluating the performance of the delivery carriers. Walmart as well will offer gift cards to customers who did not obtain packages by the promised deadline, according to the New York Times.
On the other hand, Wal-Mart Stores, Inc. (NYSE:WMT) did not immediately available to a request for comment.
UPS declared on its website that UPS experienced heavy holiday volume and is making each effort to obtain packages to their destination as quickly as possible. UPS has recommenced normally scheduled service on December 26.
A spokesperson of FedEx Corporation (NYSE:FDX) also released a “surge” in volume, except it said the increase was typical.
The spokesperson stated that they had minimal service disruptions despite the increase in volumes, and is working straight with customers who may have experienced any holdups.
The delivery afflictions recommended the retail sector is still adjusting to shifting customer behavior by means of the surge of online shopping. Analysts had anticipated brick and mortar shopping to increase just 3-4 percent in 2013, other than online shopping to jump 13%-14%.
More retailers have assured to execute Christmas-deadline deliveries ordered later as well as later in the season. Amazon characterized it’s generally holiday shopping season because the “best ever” in the firm’s history.
Amazon.com, Inc. (NASDAQ:AMZN) climbed +1.30% to close at $404.39 with the total traded volume of 1.87 million shares with the average volume of 2.76 million. Its shares were trading within the range of $396.81- $404.52 while its opening price was $401.79. Its market capitalization is $185.10 billion. Its stock price 52 weeks low was $242.75 and 52 weeks high price was $405.