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Amazon Limits Warehouse Intake to Essentials as Virus Surges

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Amazon Rations Capacity Amid Surging Coronavirus Demand and Lockdowns

On March 17, Amazon announced a temporary shift: its fulfillment centers would prioritize household staples and medical supplies, along with other high-demand goods, through April 5. The change affects third-party sellers and vendors across U.S. and EU marketplaces. Existing inventory and shipments created before March 17 will keep moving.

A surge in online orders has wiped out stock of items like toilet paper and bottled water. Delivery windows that once ran one to two days now stretch to several days. Amazon pledged to work around the clock on essential products and will alert sellers when normal operations return. Sellers outside the priority categories can still ship via Fulfilled by Merchant.

According to a CNBC-obtained document, the priority list covers baby products, health and household items, beauty and personal care, grocery, also industrial and scientific goods, and pet supplies. Sellers must not mislabel products to game the system — violations risk account suspension. Amazon said it will adjust Inventory Performance Index scores and next-quarter storage limits to reflect the change.

The pandemic had already squeezed merchants dependent on Chinese factories, forcing supply-chain shifts. With the virus spreading across America, demand has surged further. Sellers worry that stockouts could trigger algorithmic demotion in search results. Amazon suggested vacation mode to shield listings from such drops.

Business Insider reported that Amazon now blocks nonessential shipments to its warehouses entirely, accepting only the six priority categories. Vendors face reduced purchase orders while non-essential orders pause until April 5. Nonessential sellers report sales down forty to sixty percent as shoppers trim discretionary spending. Some have switched to self-fulfillment via Seller Fulfilled Prime. At the same time, Amazon unveiled plans to hire one hundred thousand more warehouse and delivery workers with a $2 hourly raise through April. The company also told vendors it would extend delivery windows for existing orders, giving them extra time to ship products to Amazon fulfillment warehouses.

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