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Impact on Amazon FBA Shipments

Amazon shuts down the non-essential product’s FBA service during COVID-19

Amazon has informed sellers that it is shutting down its FBA service for non-essential products. It is rather focussing on accepting products that will prove useful to the customers at the time of the Corona pandemic including household products, healthcare amenities, and other essentials. 

A notification was sent to the Amazon FBA Sellers on Tuesday, 17 march stating as below:

“Temporarily prioritizing products coming into our fulfillment centers
Dear seller,
We are closely monitoring the developments of COVID-19 and its impact on our customers, selling partners, and employees.
We are seeing increased online shopping, and as a result, some products such as household staples and medical supplies are out of stock. With this in mind, we are temporarily prioritizing household staples, medical supplies, and other high-demand products coming into our fulfillment centers so that we can more quickly receive, restock, and deliver these products to customers.
For products other than these, we have temporarily disabled shipment creation. We are taking a similar approach to retail vendors.
This will be in effect today through April 5, 2020, and we will let you know once we resume regular operations. Shipments created before today will be received at fulfillment centers.
You can learn more about this on this Help page. Please note that Selling Partner Support does not have further guidance.
We understand this is a change to your business, and we did not take this decision lightly. We are working around the clock to increase capacity and yesterday announced that we are opening 100,000 new full- and part-time positions in our fulfillment center across the US.
We appreciate your understanding as we prioritize the above products for our customers.
Thank you for your patience, and for participating in FBA.”

According to this letter by amazon, it has shut down the shipping of non-essential products and only the household necessities, healthcare amenities, and other essentials are shipped currently as there is a massive increase in the buying of such products during the COVID-19. This will continue till 5th April, and shipping will start after further notice from their end. Further, Amazon has is working around the clock to increase capacity and yesterday it announced the opening of 100,000 new full- and part-time positions in their fulfillment center across the US.

This is a massive blow for the FBA sellers, but they can keep up the reaction of the third-party sellers. The third-party sellers can still sell their products, but they have to fulfill their orders themselves through fulfilled by the merchant. 

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