DRAMATIC COVID-19 CHANGES FOR 47% OF ALL AMAZON SELLER

DRAMATIC COVID-19 CHANGES FOR 47% OF ALL AMAZON SELLER

3/17/2020 Noon

Wow! So many changes coming at everyone so fast. Just when you were
breathing a sigh of relief (that selling online was a utopia compared to having
a brick and mortar retail store), something new pops up. That something
new is a decision by Amazon, the partner that we love and hate. Like a
marriage. Can’t live with them and can’t live without them.

Amazon Freezes Non-Essential-Product Shipments from Its Third-Party FBA Sellers.

Insights from Andrew Morgans and the Marknology team in Kansas City.

Here are the Details.
As of now, if you are selling into one of the Amazon categories not listed
below, you will not be able to set up a new receiving shipment in an FBA
center. This current block will last until April 5th. If you already have an
inbound shipment set up, then it will be honored. (Product already in the
Amazon FBA system will still be fulfilled as normal except perhaps at a
slower speed.) This affects both vendors as well as independent sellers.
 

Affected Products are everything except the categories listed below:

  • Baby
  • Health & Household
  • Beauty & Personal Care (Including personal care appliances)
  • Grocery
  • Industrial & Scientific
  • Pet Supplies
Again, Please Note: Not all products in these categories qualify as essential.
This is going to be a fractious time for all of us. We are here to help you
navigate. Feel free to partner with us. We are stronger together. God bless.
Stay safe. Stay healthy.

FAQ:

  • Question: Why?
  • Answer: Covid - 19. Civic Duty. Amazon is trying to fill the gap of all the retail stores that are shut down and to allow people to order all of their essentials online. This will help America get healthy again.
  • Question: I have products in an Amazon FBA Center. What happens to these products?
  • Answer: Nothing changes, except your product, might ship a little slower.
  • Question: I need to reorder. What should I do?
  • Answer: If you try to set up a shipping order in your Seller Central but cannot, then your product is not considered essential by Amazon and you cannot ship it to an FBA Center. However, you may ship it to another location and sell as FBM until the block is lifted. (Fulfilled by Merchant.)
  • Question:  How do I know if my product is blocked?
  • Answer: In general, if it is not selling in one of the above categories, then it is blocked. And even then, some products in these categories are not considered essential. Without an accepted shipping order, you cannot ship your product to Amazon.
Note: Be sure and try to set up a seller shipping order before you order
from the factory. If you cannot set up the order in Seller Central, then do not ship to an FBA center. 
  • Question: If my product is blocked, what can I do?
  • Answer: You can place the order with the factory and have the product shipped to a location of your choice but not the FMA center.
Note: Marknology is now offering warehousing options.
  • Question: How long will this current block be in effect?
  • Answer: This one is until April 5th.
However, we all know that it could be extended.
  • Question: Should we consider selling products in the accepted categories?
  • Answer: New sellers into these categories must be approved by Amazon. Research is always good, but it’s better to measure twice and cut once. Be cautious here.
  • Question: So, what is the takeaway here?
  • Answer: Know your business model. Know your options. Work your numbers. If it is still profitable, then arrange for alternate receiving and order fulfillment.

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About the Author
Andrew Morgans is the founder and CEO of Marknology, a Kansas City-based Amazon marketing agency that has managed over $2B in revenue for 300+ brands since 2015. He hosts the Startup Hustle podcast and has spoken at conferences across 5 continents.

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Marknology is a Kansas City-based Amazon marketing agency founded by Andrew Morgans in 2015. The agency has managed over $2B in revenue for 300+ brands, offering services including Amazon listing optimization, PPC management, brand strategy, and marketplace expansion.

Who is Andrew Morgans?

Andrew Morgans is the founder and CEO of Marknology, a leading Amazon marketing agency based in Kansas City. He hosts the Startup Hustle podcast and has spoken at conferences across 5 continents about ecommerce and Amazon marketplace strategies.

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