As most sellers already know, amazon announced sweeping measures Tuesday to prioritize a range of goods in light of the global COVID 19 outbreak. For those who haven't read the statement, you can find the full Message here.
This announcement will undoubtedly have an impact on the majority of Amazon sellers nationwide who rely on FBA to ship their goods to customers without interruption. As the team here at fulfin are always working to support our Amazon customers, we're putting together this article to help those affected get through this time in the best possible way.
What exactly did amazon announce?
In summary, amazon announced that due to increased demand for household goods, these goods will take priority over other goods sold through amazon FBA, effective immediately.
The full list of goods that amazon has prioritized includes:
- Baby Products
- Health & Household
- Beauty and personal care products (including personal care appliances)
- Industry & Science
- Pet accessories
As a result, amazon is temporarily disabling the creation of shipments for goods deemed non-essential. This announcement will take effect immediately and will last at least until April 5. Unfortunately, these measures do not only affect the German amazon Marketplace, but all Marketplaces in the EU and the USA.
Furthermore, amazon clearly warns that sellers should not list their products inaccurately in order to circumvent these measures. Any seller who attempts to do so is in violation of amazon's policies and amazon may therefore suspend the account with immediate effect.
Search for an alternative solution to Amazon FBA
fulfin is fully aware that these are extremely challenging times for some German FBA sellers. Losing customers, sales and most importantly revenue. Most sellers still rely entirely on FBA and by default have no independent logistics provider to rely on, so they cannot switch to a reliable FBM model during this time and in the short term.
fulfin customers, benefit from our network of independent logistics partners and have the advantage of additional inventory outside of Amazon FBA, which can now be sold through the FBM model.
Unfortunately, very few third-party logistics (3PL) providers are able to meet the strict requirements of Seller Fulfilled Prime. This means that your products won't rank as high or generate as many sales as if they were stored on Amazon. FBA is still the most appropriate fulfillment solution for a merchant selling exclusively through amazon. However, it's always worth keeping a small strategic supply with an independent fulfillment partner, which can have great benefits for many sellers in times like we're experiencing now.
To help all German Amazon sellers, we've compiled a short list of reliable alternative fulfillment providers that can prevent a collapse of a seller's business by replacing amazon FBA in the shortest possible time. The following companies are well positioned to help amazon sellers keep their business up and running in the short term and continue selling their goods:
It's important to make sure you find the right fulfillment partner for you and your business. Accordingly, ask many questions to ensure a good working relationship.
Also keep in mind that the majority of German amazon sellers are currently looking for alternative fulfillment partners to replace amazon FBA. This could mean that many fulfillment companies themselves will be flooded with new customer requests. So it's important to act quickly, but by no means irrationally.
Short Term Loan Solutions for Amazon FBA Sellers
fulfin assumes that some sellers may have already dealt with short-term loans, which may be due to lower sales during the period when amazon prioritizes household goods. You may also be one of the lucky few whose products are prioritized by amazon and therefore need additional funding to buy new merchandise to handle the demand for online sales.
In both cases, fulfin can help provide sellers with much needed liquidity. Because we offer e-commerce merchants tailored financing solutions, we know which financing solution is best for which situation. For example, fulfin has a flexible payment pause feature that allows sellers to delay financing repayments by up to three months. This would be an ideal solution for the current situation and gives dealers flexibility when they need it.
In order to further support the amazon seller ecosystem, of which fulfin is the main player, we are temporarily offering our customers the possibility to use this payment break at no additional cost. This way, sellers can access the liquidity they need to keep their business running smoothly and growing during this period.
To learn more, you can come to us at fulfin visit or book them via this Link a call from a member of our sales team.
Summary and key findings
In summary, we believe there are some important aspects to consider. As an amazon FBA seller, you want to avoid as much disruption to your business as possible. These important facts are:
- Find out if your product is included in amazon's prioritized list
- Don't miscategorize your product to get around the rules
- Compare which fulfillment provider best suits your business and needs
- Also look around for additional fulfillment companies in case they see increased demand as well
- Act sooner rather than later to ensure continuity
- Assess your need for any loan solutions to ensure your business can continue during this period
- Store your goods with a provider who can offer a high quality fulfillment service.
We wish all amazon merchants the best of luck and hope that all our partners who sell through amazon can resume business as soon as possible.
And don't forget to wash your hands!