What is Amazon's obligation to sellers during COVID-19

Marketplaces
Written By Rick Watson

WHAT SHOULD AMAZON DO TO HELP ITS MARKETPLACE SELLERS?

I've been asked this question a few times from my network in the last few days. I much prefer to lay out the criteria I would use if I were them.

  • First, it's about the crisis more than the sellers. Amazon should prepare as if its a public utility that could be commandeered by the Federal Gov't at any time. Yes, Jeff and The Donald will bury the hatchet.

  • Second, with the slashing of FBA, they may relax Prime restrictions and lessen the restrictions for the "Seller Fulfilled Prime" program so that their Prime assortment doesn't dwindle in non-essential categories. Third, I expect them to eliminate monthly seller minimums on the entry-level seller accounts. This is a no-brainer.

  • Fourth, I do think Amazon will slash its marketplace success fees by one-third to ease the burden on sellers.

  • Fifth, I think Amazon's supply chain network will start being a vendor of the Federal Government. Watch this space.

There is a deal coming here with his old enemy that the President will be able to take credit for. I do not expect advertising fees to change. You might even expect them to increase and get more expensive due to demand. Search can't get more polluted. What else should Amazon be doing with its marketplace?

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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