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Sellers Are Not Diversifying As Amazon Struggles

Sellers Are Not Diversifying As Amazon Struggles

Competing marketplaces are not seeing a significant acceleration in new sellers as Amazon's fulfillment struggles caused sellers to reevaluate their dependence on the Fulfillment by Amazon (FBA) service. One month after Amazon started prioritizing the stocking of essentials and high-demand items in its warehouses, making many sellers that used the FBA service to look for other warehousing providers, it didn't drive sellers to look for alternative marketplaces.

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Half a Million Unhappy Amazon Shoppers

Half a Million Unhappy Amazon Shoppers

Customer satisfaction with Amazon marketplace sellers reached a new low in March, driven by order cancelations, long delivery estimates, fake tracking numbers, price gauging, and other issues. In the U.S., 92% of customers had a positive experience last month, down from 95% a year ago.

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Coronavirus Dominates Amazon Search

Coronavirus Dominates Amazon Search

In March, most shoppers on Amazon looked for toilet paper, face masks, hand sanitizers, and other essentials, as well as items for working from home, at home sports equipment, and offline entertainment. However, most of the in-demand searches returned no items in stock.

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Amazon Shuts Down in India Amid Lockdown

Amazon Shuts Down in India Amid Lockdown

Amazon India has halted most of its operations as well as deactivated all of the nearly 600,000 marketplace sellers as much of the country is under lockdown to prevent the spread of coronavirus. The country’s 1.3 billion people are in a three-week lockdown.

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Amazon’s Botched Focus on Essentials

Amazon’s Botched Focus on Essentials

Nearly 750,000 sellers globally and more than 250,000 sellers on the U.S. marketplace use the Fulfillment by Amazon (FBA) service. Amazon's attempt to prioritize items that are the highest priority for shoppers during the Covid-19 pandemic has sparked panic among those businesses.

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Coronavirus Brought Back Flaws in Amazon Marketplace

Coronavirus Brought Back Flaws in Amazon Marketplace

Thousands of new sellers have joined the Amazon marketplace to disappoint shoppers looking for face masks, hand sanitizers, and other essential items. Tens of thousands of negative seller reviews are flooding in as shoppers complain about price gauging, low quality, canceled orders, and not receiving orders after weeks of waiting.

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Chinese Sellers Flock to Amazon As Factories Recover

Chinese Sellers Flock to Amazon As Factories Recover

More than half of new sellers on Amazon in March were from China, an all-time high. Every year, February sees the smallest number of new Chinese sellers due to the Chinese New Year virtually shutting down the country for two weeks. In March, growth resumes, and so far in 2020, it is setting new records.

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Amazon Coronavirus Index

Amazon Coronavirus Index

The Amazon Coronavirus Index tracks the popularity of items like face masks, wipes, medical gloves, soap, hand sanitizers, toilet paper, paper towels, and emergency food on Amazon. Nearly 40% of e-commerce spending in the US happens on Amazon; thus, shopping trends on the site are indicative of the overall consumer trends. For the last two weeks, coronavirus-related shopping has overtaken e-commerce.

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Amazon Launches in the Netherlands

Amazon Launches in the Netherlands

Amazon launched in the Netherlands on Tuesday, March 10th. Over a thousand local retailers joined the marketplace already, and more than thirty thousand worldwide sellers in total were present at the launch. The company is leveraging its other European marketplaces as well as existing fulfillment infrastructure to kickstart the Amazon Netherlands launch faster than any other previous new market.

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Amazon Sellers in Coronavirus Epicenter Hubei Province

Amazon Sellers in Coronavirus Epicenter Hubei Province

Tens of thousands of Amazon sellers are based in Hubei Province, the epicenter of the novel coronavirus outbreak. Despite the province representing less than two percent of China-based sellers, as the country tries to contain the spread of the virus, factories and sellers south of Hubei are struggling to resume operations.

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