A devastating blow to the millions of companies who use Amazon

Amazon is temporarily blocking shipments to its warehouses in the US and Europe of all items other than household essentials, medical supplies and similar high-demand products amid the coronavirus outbreak. At the weekend, Amazon warned unprecedented strain had meant it was out of stock on many important household goods. This move, communicated to third party sellers and vendors yesterday, will allow Amazon to prioritise… But it will come as a devastating blow to the millions of companies who use Amazon to distribute their products… The measure began yesterday and run until at least April 5. Goods already in warehouses, or on their way to them, would be handled as normal… The order does not prevent third party sellers listing and selling other items on Amazon. Vendors and sellers must now use self-fulfilment methods that avoid using Amazon’s own infrastructure for storing goods, processing orders and handling delivery. As a result, the vast majority of third parties can no longer offer products as part of Amazon’s Prime delivery service… In 2019, third-party sellers sold 700 million products that used Amazon’s Prime one day shipping option. On the company’s 2019 “Prime Day” event, sales from third party sellers exceeded $2 billion…

Dave Lee