Amazon is adapting to the change in demands that the on-going coronavirus pandemic has brought. They are now prioritizing certain essential items over other non-essential items. They want to make room for items such as hand sanitizers, toilet paper and other such hygiene products in their warehouses.
Amazon’s Structure
The way Amazon functions, is that a third-party seller first sends their item to Amazon’s warehouses. Then, when a customer orders this product, Amazon packs it up and delivers it to the customer’s address. However, with this new policy, it’s not going to work this way.
If a certain seller’s product does not fit Amazon’s criteria, Amazon has told them to not send it to their warehouse.
Amazon isn’t going to store products such as phone cases, jeans, jewellery, video games, etc. with them. Amazon is doing this to ensure that they meet the massive surge in demand for such essentials. This policy is also going to be in effect until April 5, 2020.
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Reasoning Behind This Decision
Not only has hygiene become important due to this coronavirus pandemic, but people are staying at home and avoiding crowded shopping centers, too. This has made online shopping even more prominent.
Impact On Third-Party Sellers Amazon
Amazon has been running out of stock on hygiene products very quickly. So, this move makes a lot of sense for them as a business. The third-party sellers who rely on Amazon for their deliveries, however, are quite concerned about this. One such seller spoke to AP News, saying “This is getting very ugly and quick.”
The seller wished to remain anonymous since they did not wish to draw Amazon’s ire. They’ve been selling jewellery through Amazon for years now. The online shop’s drastic change is going to have financial ramifications for the seller.
Amazon understands the adverse effects that this decision may cause. They expressed as much in a statement, which says, “We understand this is a change for our selling partners and appreciate their understanding as we temporarily prioritize these products for customers.”
They also informed their customers that deliveries are extremely likely to be delayed as well. Their addition of 100,000 new employees to their delivery centres and warehouses should smooth out the process a little bit, though.
