As macro events unfold, we are monitoring impact to ecommerce, and specifically in Amazon world.
What happened in Amazon world week of March 16th:
- Amazon prioritizes FBA shipments for categories they consider essentials. As of now his is in effect through April 5th
What categories are considered essentials:
- Baby Products
- Health & Household
- Beauty & Personal Care (including personal care appliances)
- Grocery
- Industrial & Scientific
- Pet Supplies
What does this mean to you?
If you are currently selling on Amazon in these categories you can continue using Amazon fulfillment. If you sell in other categories – you will not be able to create FBA shipments until after April 5th.
If you have not explored FBM (Fulfilled by Merchant), now is the time.
Continuing selling is key. Transactions fuel economy, and we need fuel in our economy now more than anything.
Therefore, if are in a non-essential category prioritize ability to do FBM fulfillment asap.
Note, please do NOT try to circumvent this by changing categories for your products on Amazon. Your account will most likely be suspended.
If you are not familiar with FBM, we are offering a free one hour training call to walk you through the merchant fulfilled process, and answer any fulfillment (FBA, FBM, hybrid, etc.) questions you may have. This is a one on one live call with a knowledgeable expert to answer YOUR questions.
If you are interested in FBM training send us a message here
2. In the same area of fulfillment, Amazon announced they are relaxing shipping related metrics. Directly from Amazon, bolding is mine.
“Given the material impact that COVID-19 has had on many of our sellers, we have taken steps to proactively mitigate the impact of this event on the health of your Amazon seller account by relaxing our policies for shipping-related Performance metrics. Specifically, we will take into account any COVID-related disruption as it relates to late shipping or needing to cancel orders due to factors outside your control. While we always aim to deliver on our customer promise, our goal is to help you manage your business through this difficult period”
What does this mean to you?
We still see metrics like late shipments being recorded in account health section of Seller Central, however, we anticipate Amazon will be more lenient in any late shipments or order cancellations suspensions. This is good news for sellers impacted by lockdowns, reduced workforce, and slower carrier delivery times.
3. Amazon pulled back its Google ad spend, shifts in Facebook ads activity
Not surprising, on a macro advertising activity shifts are happening. Some of our clients are reporting cheaper Facebook ads, and some categories are seeing higher impressions and conversion rates (back to the ‘essentials’ concept).
(source: Wordstream.com)
What does this mean to you?
As you surely adjust your plan and actions to current events, shifts in advertising and marketing, both budget and approach, are essential. Amazon spending less on Google is not lack of confidence, but reflection of already higher demand and challenges keeping with on time fulfillment. While in the past it was hard to compete against steel arm of Amazon Google advertising, this opens up opportunities to other (read, smaller) advertisers to reach customers.
4. Amazon is hiring for 100,000 positions
In order to meet surge in demand of online shopping Amazon is hiring for mostly order fulfillment and delivery positions. These job opportunities are a relief, as unemployment claims from hit industries are rising.
What does this mean to you?
Amazon is focusing on ramping up fulfillment and delivery, which is great news for sellers using FBA. This does also remind us temporary hires during holiday season, when poorly trained and rushed new employees start making mistakes in labeling or shipments. We suggest to keep a close eye on FBA inventory management related transactions in your Seller account.
Need help navigate Amazon during uncertain times? We’ll help you get clarity and focus on what matters most now on Amazon. Let’s chat
Stay well, safe, and healthy.