Mar 18, 2020
4 min

Amazon Suspends Inbound Shipments of Non-Essential Products from Marketplace Sellers

Insight Report
Flash Reports

DIpil Das
Amazon announced on March 17, 2020, that it will temporarily suspend third-party fulfillment of all products except medical supplies, household staples and other high-demand products until April 5. The online retailer said it has experienced a surge in demand amid the ongoing coronavirus outbreak and wants to ensure resources are dedicated to getting basic supplies to customers. Designed to Prioritize Household Staples and Medical Supplies The announcement means Amazon will not accept sellers’ shipments of non-essential products to its warehouses.Amazon’s Fulfillment by Amazon (FBA), through which it provides storage, packing and shipping services for third-party sellers, will be partially suspended through April 5, according to a company blog posting. Faced with surging demand, delivery times have been delayed and many household items and medical supplies are out of stock. Amazon announced a hiring spree to cope with the surge in demand, but the latest announcement suggests the company may think that won’t be enough to manage what is likely to be continued surging demand as the outbreak spreads. Amazon says the changes will not apply to orders placed before the announcement and that goods already on their way to an Amazon warehouse will be accepted—but the three-week ban will hit merchants who rely on Amazon’s delivery services. Consumers can still buy products that are available in the warehouse. The company said it will prioritize the following six product categories:
  • Baby products.
  • Health and household goods.
  • Beauty and personal care gods (including personal care appliances).
  • Grocery.
  • Industrial and scientific items.
  • Pet supplies.
Sellers can continue to sell products already in Amazon’s fulfillment centers and the suspension will not affect last-mile delivery of products to consumers, except some logistical delays due to constraints at delivery stations. Amazon indicated it will determine whether a product is “essential” and has blocked merchants from changing product category descriptions. Timeline of Amazon Steps to Mitigate Coronavirus Challenges Amazon has been working to cope with the recent surge in online demand, for example:
Date Details
March 16 Amazon announces it will hire 100,000 new workers to meet demand, and will raise what it pays US warehouse and delivery employees by about $2 per hour through April. It will implement similar raises in the UK and the EU.
March 16 Amazon warns customers to expect delays as coronavirus fears ramp up.
March 12 Amazon offers paid sick leave to all employees affected by coronavirus.
March 11 Amazon cancels AWS Summit in San Francisco.
March 10 Amazon blocks some personal care products offered at above market prices.
March 10 Amazon eases attendance policy for employees amid coronavirus.
March 30 Amazon confirms donation of $5 million to help small businesses near its headquarters mitigate coronavirus losses.
March 9 Amazon Prime video available free of charge in Italy’s quarantined coronavirus hot zones.
March 3 Amazon emails its trucking network to offer advice on how to conduct business amid coronavirus concerns.
February 28 Amazon asks employees to avoid “non-essential” travel.
February 25 Amazon warns sellers against price gouging.
Source: Company news

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