The Coronavirus, COVID-19, continues to spread worldwide making Amazon Sellers wonder, “How will the coronavirus affect my business?” By the time this article is published, we are seeing public schools closed, Colleges moving classes to online, restaurants closing, events canceled and the list goes on. Below is an outline of the issues we’ve noticed since the outbreak and some steps we are taking with our partners in order to be proactive.
Internal Issues on Amazon
Here is what we’ve noticed as an agency working with businesses on Amazon.
- Delays in processing inventory
- Slower response from Seller Support
- Fewer sales volume for non-essential products
As of last week, Amazon told all employees who can work from home to work from home. This includes many corporate office jobs however, many fulfillment center employees and delivery drivers cannot carry out their responsibilities. Many of these employees feel they are working in a hazardous environment and have signed a petition for a better work environment. To date, 650,000 employees have signed this petition.
We suspect that the increase in demand and likely disgruntle workers (rightfully so) have led to internal delays. In the interim, Amazon is looking to hire 100,000 more warehouse employees. With any luck, the issues noted above will resolve.
Issues outside of Amazon
A major issue we’ve noted outside of Amazon is longer lead times on getting raw materials for products to the US or finished products imported. Depending on your situation, we are adding an extra 3 weeks of lead time to our internal inventory recommendations. This will provide enough coverage so we do not run out of inventory.
This is paramount as running out of inventory will affect our BSR and set us back from a product ranking perspective. It’s better to air on the side of safety and fulfill a larger quantity as we are unsure of any future logistical issues that may come into play. For example, it’s not crazy to consider ports closing for a period of time while authorities get the pandemic under control.
Amazon Notifies Sellers to Be Prepared
Amazon notified sellers that they should be conscious of their Seller Accounts Health and bids all sellers to be proactive. If you suspect inventory to be an issue, set your account to vacation. If you take orders you cannot fulfill, cancel the orders in a timely manner and to take additional steps in ensuring your products remain available. 
Note: Amazon will evaluate relevant performance notifications and will consider unforeseen events when evaluating recent performance. This likely means, you need a really good excuse to be forgiven for any strikes against your seller rating.
Preparing Your Seller Account for the Coronavirus
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Increase lead times for products sourced overseas
Internally, we are adding an extra 3 weeks of lead time when calculating our inventory recommendations. Obviously, this is done 0n a case by case basis. There are many aspects to consider, consider what works best for your business.
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Ensure your listing is 100% compliant with Amazon’s TOS
With Seller Support being slow to reply to cases and resolve issues, we recommend that your listing is 100% compliant. Err on the side of safety, if your listing is suppressed, it may take a while to get back to active.
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Reduce advertising budget on long lead time products
If you notice an increase in sales velocity that makes your worry about your inventory levels, then be proactive and pause ad campaigns. It’s important to maintain inventory in the account. Plus, if inventory is moving well, you will have better margins.
Note: If you are not enrolled in the Head Start program, now would be a time to start.
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Be proactive when following up with Seller Support
If you are following up with Seller Support on any issues regarding your account, try to get someone on the phone. We find that works best when following up with support. If this is not possible, be persistent in your follow-ups.
Conclusion
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