Uncharted Territory: Amazon and COVID-19 (feat. Kiri Masters)
Future Commerce · with Kiri Masters · March 20, 2020 · 45 min
Summary
Amazon expert Kiri Masters discusses how the COVID-19 pandemic is impacting Amazon sellers, fulfillment, and consumer behavior. She shares insights on product categories seeing increased demand, supply chain disruptions, and Amazon's policy changes, offering a snapshot of the unprecedented challenges and opportunities for brands navigating the "new normal" on the platform.
Key takeaways
Amazon prioritized essential goods (pet, baby, food, health, personal care) for FBA, leaving non-essential brands unable to ship inventory to Amazon and scrambling for alternative fulfillment.
The pandemic exposed vulnerabilities in global supply chains, specifically reliance on China for packaging and components, causing slowdowns even for US-manufactured goods.
While "just-in-time" inventory is usually ideal, brands with existing stock of essential goods on Amazon before the pandemic were best positioned to capitalize on demand spikes.
Unauthorized sellers and "made-up brands" that often lead to excessive choice on Amazon have been curtailed by factory shutdowns in China, leading to supply shortages for certain items like thermometers.
Brands facing supply chain disruptions should consider strategic pricing adjustments to slow sales and ensure inventory longevity, rather than selling out immediately and having no revenue for extended periods.
What does this episode say about amazon & marketplaces?
Amazon prioritized essential goods (pet, baby, food, health, personal care) for FBA, leaving non-essential brands unable to ship inventory to Amazon and scrambling for alternative fulfillment.
What does this episode say about supply chain & operations?
The pandemic exposed vulnerabilities in global supply chains, specifically reliance on China for packaging and components, causing slowdowns even for US-manufactured goods.
What does this episode say about brand & content?
While "just-in-time" inventory is usually ideal, brands with existing stock of essential goods on Amazon before the pandemic were best positioned to capitalize on demand spikes.
What does this episode say about amazon & marketplaces?
Unauthorized sellers and "made-up brands" that often lead to excessive choice on Amazon have been curtailed by factory shutdowns in China, leading to supply shortages for certain items like thermometers.
What does this episode say about amazon & marketplaces?
Brands facing supply chain disruptions should consider strategic pricing adjustments to slow sales and ensure inventory longevity, rather than selling out immediately and having no revenue for extended periods.
