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The Impact of Covid-19 on Amazon FBA

Appearing from the middle of nowhere in 2020, Covid-19 has completely changed the entire process of our common life. As a result, millions of people lost their jobs since the biggest part of companies had to close their doors. At the same time, we can see a completely different picture with e-commerce, since millions of customers have integrated into the online marketplace, specifically Amazon.

In order to handle this strong wave of sales, Amazon has started to make big investments into its FBA program in order to encourage people to use this fulfillment method.

However, these changes also affected many Amazon sellers’ way of operation. First of all, they have touched Price Gouging issues, and limitations on products which Amazon does not allow to send to its warehouses.

During a short period of time, demand on products such as medical supplies, and household staples has dramatically increased. Let’s look at several statistics which have been made in accordance with some researches.

  • Searches for medical masks on Amazon has increased by 17,000%
  • Searches for home care products has raised by 47%
  • Sales of heath products has increased by 99%
  • Searches of fitness products has also increased by more than 87%

FBA Shipment Restrictions!

One of the biggest changes that Covid-19 has brought into most Amazons’ FBA sellers lives concerns restrictions on what can be sent into Amazon’s warehouses. Thus, only essential goods are allowed to be sent to Amazon’s storehouses. The main reason for such kind of restrictions is to reduce the fast spread of coronavirus.

The following list of product categories is permitted to sell through Amazon FBA:

  • Groceries
  • Pet Supplies
  • Beauty & Personal Care
  • Health & Household Goods
  • Industrial & Scientific Products
  • Baby Products

As a result, most Amazon sellers will have to wait till the end of the pandemic, and continue to sell their usual goods or fulfill products by using Fulfilment by Merchant (FBM), which is not the best option for running a successful business on Amazon. Therefore, if you come across with FBA restrictions, it is better to wait out the storm, and not change the way of your operation. Or you can look at another category of products which you can sell through Amazon FBA without having problems with Amazon.

 

About Price Gouging

Since the demand on several products enormously increased, lots of unfair sellers rushed to increase prices on products which showed high sales. Only in California, prices on some essential goods have increased by 670%. As a result, they face Amazon suspensions for price gouging violations. Keep in mind that Amazon is very strict when it comes to unfair prices. Therefore, try to keep an optimal balance in your prices.

Despite lots of restrictions during the pandemic, the popularity of Amazon increases day by day. That’s because lots of sellers decide to move from physical stores into the e-commerce field, since people all over the world prefer to purchase from e- commerce stores in order to reduce the possibility of being infected by Covid-19. Additionally, Amazon FBA is one of the fastest and safest ways to get what you want in a very short period of time.

Therefore, if you intend to build a profitable business, FBA Amazon is the best option to invest in. Especially if you are cooperating with Jerome Basilio’s team, where you can be 100% sure that you will have an extremely successful business on Amazon. Reach out to our team, and we will not only help you launch your FBA business, but also find best wholesaler suppliers with whom you can build trustworthy relationships and get the best deals!

 

 

 

Jerome Basilio

Assisting businesses with Wholesale and Multimarket Management services is a passion of mine and that is why I formed Basilio Corporation, providing such services for 84 companies as of today. Basilio Corporation has sold a total of 52 stores for seven figures, in open digital exit broker companies. The company has partnered with Khachaturov Group, a leader in multiple industries, which has strengthened its resources. Over the years, I have used my experience to consult top players in the business, and mentored minds which became influential millionaires in the eCommerce sphere.