March 18, according tomedia reports, local time on Tuesday, The U.S. e-commerce company Amazon told the platform sellers, from now until April 5, Amazon warehouses in the United States, the United Kingdom and other parts of Europe only receive essential supplies, such as necessities. It is the company’s latest move to free up storage space in response to the spread of the new coronavirus outbreak.
The change does not mean that Amazon will temporarily stop selling non-essentialitems such as mobile phones and toys, but that the products may be out of stock in the coming weeks or that sellers will have to ship directly to consumers themselves. In a report sent to sellers on Tuesday, Amazon said consumer demand for online shopping is growing. With inventory of household essentials and medical supplies running out, the company will prioritize certain categories of products to “quickly receive, replenish and send these products to customers”.
Basic necessities that Amazon requires to continue shipping include baby products, hygiene and household items, beauty and personal care, groceries, industrial and scientific equipment, and pet supplies. In addition, books are included.
FILE PHOTO: A worker wearing a mask walks past a truck parked at an Amazon distribution center as the new coronavirus continues to spread in Bethpage, Long Island, New York, U.S., March 17, 2020.
“We understand this is a huge change for our sales partners and thank them again for their understanding as we give priority to our customers for the time being,” Amazon said in a statement. “
The company said the new agreement applies to Amazon’s proprietary suppliers and third-party sellers. This suggests that the company has not been treated differently for its proprietary goods.
On Monday, Amazon announced it would hire 100,000 new employees for its warehouse. With many consumers forced to stay at home as a result of an outbreak of the new coronavirus, Amazon is struggling to meet growing demand for online shopping.
Less advertising revenue?
The change could affect Amazon’s lucrative services to merchants, such as the advertising needs of third-party sellers.
Amy Roskelley, owner of Health Beet, a Utah cutlery company, says she pays Amazon $1,000 a month to promote cutlery that helps consumers split meals. Now that she can’t add inventory to Amazon’s warehouses, she plans to cut advertising spending in half.
“If I don’t have enough inventory to meet my customer’s orders, then it’s completely unnecessary to keep spending money,” she said. “
Ross Kelly is also considering other ways to reduce his company’s reliance on Amazon’s platform, such as shipping directly to customers or diverting to his own site.
“I’ve always worried that they’re going to shut down Amazon warehouses and don’t ship at all, and that’s just going to ruin me,” Ross Kelly said.
Amazon has not said it will close any warehouses. Still, with the spread of the new coronavirus around the world, the outbreak poses a challenge to all of the company’s businesses, from Amazon’s supply chain to distribution.
“Our factory has just resumed production, but it won’t be shipped to the warehouse until April,” says a third-party seller. “
Colin Sebastian, an analyst at Market Research, said in a note that Amazon’s two-day service can sometimes drag on to seven days. Tuesday’s announcement is aimed at speeding up operations, but could limit the supply of non-essential items such as electronics. Electronics are often an important part of Amazon’s business.
“This change could force many third-party sellers who currently rely on Amazon’s platform to move sales to other e-commerce platforms such as eBay, Wish, Wal-Mart, and Facebook Marketplace, or to their own sites,” Sebastian said.
Third-party seller merchandise sales account for more than half of Amazon’s total sales. Amazon has been promoting its own delivery system to sellers, allowing many to ship faster without taking the risk of overstocking.
The news comes as third-party sellers are dealing with economic uncertainty during the outbreak, one adviser said. Staff in bars, gyms, theatres and other non-essential industries will be suspended to help stem the spread of the new coronavirus. U.S. President Donald Trump said Monday that the U.S. economy could slip into recession.
“Sellers are rethinking the overall sales strategy for 2020,” said Chris McCabe, founder of Amazon Sellers. “