eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

View Original

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

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?