Dealing with Amazon FBA’s COVID-19 Policy

By Robert Khachatryan

Amazon shipping during COVID-19

Coronavirus has posed major challenges to Amazon sellers. And while recovery from the Chinese supplier end has begun, the US is just beginning to face the impact of the crisis. Here are some key factors: 

  • Amazon is in the process of hiring 100,000 new full and part-time fulfillment employees in order to meet the surge in demand for goods that households are desperately ordering as a response to COVID-19. 
  • After a month of complete shutdown, Chinese factories are gradually recovering by mass-producing demanded goods, but there’s nowhere to deliver many of these goods. 
  • As of this week, Amazon is restricting deliveries to high-demand goods such as medical supplies, household products, etc. 

Amazon FBA COVID-19 Policy

In light of all of this, storage has become a major problem for Amazon sellers, many of whom are desperate to revamp their sales after the Chinese shutdowns. It looks like the best solution may be importing the goods and holding them in warehouses stateside. This would allow the goods to be readily available and only a few days away from delivering to Amazon, as soon as the retail giant lifts the restrictions. 

The alternative to importing and storing is leaving goods at factories overseas, but this solution comes with significant downsides. First, factory storage causes space issues for manufacturers. Second, it means a wait time of at least three weeks before delivery after restrictions are lifted. And finally, there is still the ever-present risk of further shutdowns and restrictions on cargo movement worldwide. After all, expert consensus seems to be that supply chain disruptions will get much worse before they get better. 

Freightos.com sellers are stepping in with warehousing solutions. Logistics companies like Freight Right have made available over 1 million square feet of warehousing space nationwide in the United States. Once restrictions are lifted, Amazon sellers will have their stockpiled inventory delivered to Amazon FBA on just a few days’ notice. 

This will not only improve product flow, but will also help suppliers keep up with product demand as the fallout from the pandemic continues over the next few months. 

To learn more about how coronavirus is affecting freight shipping, check out our coronavirus shipping updates.

 

Robert Khachatryan is the Founder and COO of Freight Right, a logistics and transportation company based in La Crescenta, CA, catering primarily to technology-centric companies, including freight marketplaces, international freight forwarders, 3PLs, and other resellers of international freight. Freight Right is a provider on Freightos.com.