Anyone who has bought, sold, or even simply searched for products on Amazon recently has likely noticed some changes because of the ongoing coronavirus pandemic. This article hones in on some changes that Amazon sellers should be aware of, and how to adapt to this new market.
A Strong but Changed Market
As covered by Faheera Ali at Digital Commerce 360, demand for products on Amazon remains strong. After all, shopping online is a very attractive option when people are self-quarantining. However, while customers are buying goods at a rapid pace, the way in which those goods are delivered has changed, which has implications for selling on Amazon.
For example, the Fulfillment by Amazon (FBA) program has seen a major shift. In normal times, this program was a way for sellers to facilitate transactions by tapping into Amazon’s considerable resources: Amazon would store sellers’ products in the company’s warehouses and then handle delivery to customers. Starting on March 16, however, Amazon suspended shipments of “non-essential” products to its warehouses. (The category of non-essential products included anything that was not a household staple, medical item, or other high-demand product.)
The pause lasted until April 5. When April 6 came, Amazon did not fully end the pause, but Ali reports that “Amazon is selectively allowing more products” when facilities have the capacity.
Naturally, Amazon’s operational changes have affected consumers as well as sellers. For example, customers looking at Amazon listings will see that delivery windows are typically much longer than normal.
Sellers’ Adaptations
Ali writes that sellers are responding to the new environment in several ways. For instance, because the pricing on essential goods can be quite volatile, the company MPO Global shifted from using automated repricing software to manually looking at the prices set by competitors. MPO Global did this as a way to avoid extreme price spikes or dips.
While essential goods are in high demand, companies like Meowy Janes—which sells toys and other products for cats—have seen a decline in sales. Meowy Janes adapted to the new environment by changing from FBA to merchant fulfillment, meaning they now handle shipping and processing instead of relying on Amazon entirely. Ostensibly, this lets them get around the FBA moratorium on non-essential items.
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