How Can Amazon Sellers Safeguard And Survive Their Ecommerce Business During Covid-19 Outbreak?

“It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.”

quoted by Charles Darwin. Change is inevitable in a complex system like our world. The ones who can adapt themselves to change are the ones who can survive extreme situations.

With the spread of the pandemic novel coronavirus, the factories and manufacturing units worldwide are experiencing a drastic decline in production. Various products are looking at a steep decline as many nations across the globe go for a total lockdown to curb the pandemic. It affects the Amazon sellers as it leads to an unexpected shortage in their inventory and the difficulty to restock.

Many Amazon sellers have placed large orders before the Chinese New Year, and after the 15-day celebration, the factories have not resumed work due to the coronavirus outbreak, and we are unsure when they will get back on foot. The industrial average of many top companies has dropped from 11%-12% due to stock inadequacy, and Amazon is holding up fairly well, with an average 10% drop.

It’s no easy for the Amazon sellers either. The sales rank faces a nosedive if the out of stock situation persists for more than ten days. The worst part is that the other products with sales rank will appear on the top of the organic search. If you are going out of stock for more than 30 days, then you will have to start from scratch like a new seller.

Amazon itself has come up with suggestions for sellers like putting their business in ‘Vacation status’ and canceling all the orders that no longer can be fulfilled. But Sellers are more worried about their rank status dropping if they are running low on inventory.

To avoid such situations, here are some tips that you can incorporate to mitigate the risk during this crisis period.

Cut-Down Ad Budget

Slowing down or completely stopping Amazon ads during this time. It will reduce the risk of your products going out of stock very soon. Find out the product in demand or which is depleting fast with good supplier management tools and reduce the traffic to those specific products. If in case you are using other means of generating traffic to your site, we would suggest you turn that off until you replenish your inventory, and you are all set to commence sales.

Move Your Inventory From Other Channels

This is the best option that can save your neck. Reel in your entire inventory from other channels or at least the products that are having a high demand or that may go out of stock very soon.

Set Your Cost Price High

It’s the usual economics when cost inflates, the demand faces a deflation. By this, other sellers who have competitive rates will sell first, and you can have a breathing time until you fill up your stock. But be careful if you have provided Amazon catalog with pricing data, because your buy box eligibility may get removed.

Our experts are hand in glove with the algorithms and Amazon supply chain management. Hence, we take it as our responsibility to guide our valued clients during crises. We have proficient developers who can develop the best eSellerhub’s supplier management tools, which can link to other selling channels. You can also hire our developers for your work. To know more, contact us: +1 408 600 0534