Amazon Sellers & COVID-19

James Bailey - 8 min

How Amazon sellers can get through covid-19

COVID-19 is now no stranger to business, with wide spread closures of non-essential businesses and facilities such as gyms, library’s, and even McDonald’s.

Amazon have recently made some decisions which could impact many Amazon sellers, below we will cover some of these changes and what you can do to progress with the changes.

How has covid-19 affected sales on amazon

After the government put in place social distancing and strict rules on why you can leave your house, Amazon have in turn experienced a huge increase in demand for certain items, mostly household essentials, food and healthcare products.
Actions Amazon will take

First of all Amazoon has made the decision to temporarily disable shipment creation of non-essential items to its North American & European warehouses on March 17th, and will remain this way until April 5th. However this date could change depending how the COVID-19 situation develops.

So what does this mean for FBA sellers? Well, in short, you won’t be able to restock into an Amazon warehouse if you aren’t selling in one of six approved categories.

Approved essential items

Amazon have categorised what they feel is classed as essential items. Each of the items eligible for approval fall into the below categories:

– Baby products
– Health and household
– Beauty and personal care (including personal care appliances)
– Grocery
– Industrial and scientific
– Pet supplies

What does this mean for you

You can still continue to sell approved items via FBA, however, now more than ever, you need to pay very close attention to your pricing. SInce demand has increased for products, prices are also rising. However, some sellers are inflating their prices making business very unfair on Amazon.

Being competitive but fair

Amazon are enforcing their fair pricing policy very aggressively, and if found price gouging your account will be suspended and you could even face prosecution. This means pricing your products correctly is paramount.

Amazon’s fair pricing policy states that you must not ‘Set a price on a product or service that is significantly higher than recent prices offered on or off Amazon.’ This might seem easy enough to comply with, but finding the balance between profitability and compliance can be tricky.

What if my products aren’t approved?

You can still sell items that aren’t considered essential if they are currently in Amazon’s warehouse, however, Amazon will not be re-stocking their warehouses with these non-essential items.

With Amazon temporarily stopping incoming stock for non-essential items through their FBA network, many Amazon marketplace sellers are faced with having to do the fulfilment themselves. This not always possible for the seller and moreover product listings could lose their competitiveness due to losing the Prime shipping option. At Lama Fulfilment, we can quickly integrate your Amazon account with our platform and perform the fulfilment on your behalf. In most cases we can also offer Seller Fulfilled Prime, whereby your products and listings will carry the Prime Badge.

You don’t need to have your products in Amazon’s warehouse to get the benefits of Amazon Prime. Get on board with Lama Fulfilment and continue business as usual with little to no down time.

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The staff and management at Lama Fulfilment have a ‘Can Do’ attitude to everything that they have done for Excotek Ltd.  Using Lama as our 3PL company has enable our support and management team to focus on other operation activities which has enable us to grow our business without the restrictions and challenges that B2B logistics can bring.

Steve Minshull, General Manager

Excotek Limited
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Customer experience is fundamental to our business, so when it came to outsourcing our fulfilment finding the right partner was critical. Due to their in-house experience and skills, Lama completely understood our business requirements and continually work with us to develop flexible processes and solutions to support Dr Fertility’s fast growth and big ambitions!

Kobi McCardle - Co-Founder

Dr. Fertility
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While using Amazon we were frustrated with the costs, lack of personal customer service and agility in managing stock inventory, so we used the downtime Covid-19 afforded to review our future fulfilment plans.

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Ross Miller
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