“We are seeing increased online shopping and as a result some products such as household staples and medical supplies are out of stock,” an Amazon spokesperson said in a statement on Tuesday, March 17, 2020.
So the company changed what it will let into its warehouses. Until April 5, independent sellers on its US and European Union marketplaces cannot send in new inventory unless it falls into a high-demand category, CNET reported. Express.co.uk, covering the UK, said the same limits apply to its warehouses there.
The categories on the priority list are baby products, health and household items, beauty and personal care, groceries, industrial items and pet supplies.
What the company said
“We are temporarily prioritizing household staples, medical supplies, and other high-demand products coming into our fulfillment centers so we can more quickly receive, restock, and deliver these products to customers,” the spokesperson said. The statement added: “We understand this is a change for our selling partners and appreciate their understanding.”
Amazon told CNET it is taking similar steps with sellers and with its own vendors. Shipments already on their way to its warehouses will be accepted, and goods already inside can still be sold. Sellers will be alerted when the company expects the policy to end.
Strain on shoppers and sellers
The move followed a hiring announcement on Monday. Amazon said it plans to add 100,000 people in the US to handle the surge, during what is normally a slower stretch of the year for retailers.
In the UK, Express.co.uk said cleaning supplies and other items tied to Covid-19 had sold out, and that Amazon was warning shoppers that orders may take longer than two days to arrive. Officials were urging the public to self-isolate. The paper put the UK toll at 55 dead and nearly 2,000 confirmed infections.
Sellers felt the squeeze. CNET said the change could hurt small businesses that rely on Amazon for sales, and some third-party sellers, who account for over half of Amazon’s sales, told Express.co.uk the restriction would hit their businesses hard. The paper added that independent merchants had struggled to sell products for some time, after factories in China shut down during that country’s own outbreak earlier in the year.
Sources
- Amazon shifts priority to medical supplies, household basics amid coronavirus pandemic – CNET
- Amazon suspends all shipments in UK amid coronavirus crisis
