Amazon told sellers on Tuesday that it’s delaying inventory removal orders and waiving long term storage fees at its warehouses.
The change allows Amazon to dedicate its formidable logistics resources to delivering essential products to consumers, instead of spending efforts returning inventory to sellers.
The change could help some merchants sell dead products by keeping them in Amazon warehouses longer, but could also prevent them from taking back them back and selling on other channels.
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Amazon is now letting sellers keep their old, non-selling products in its warehouses longer so that it can focus its logistics resources on more urgent, essential products amid the coronavirus pandemic.
In a note sent to sellers on Tuesday, obtained by Business Insider, Amazon announced that it’s delaying removal orders from its warehouses and waiving long-term storage fees for next month. Amazon typically penalizes sellers that fail to use its warehouses efficiently, and requires an extra fee for removal of certain products that clog up space.
With the change, Amazon won’t have to use its logistics capacity — including trucks, planes, and warehouse people tracking those returns — on shipping back those products to sellers.
“To ensure the capacity to receive, restock, and ship high-priority products like household staples and medical suppliers, we have temporarily paused removal operations in some of our fulfillment centers,” the note said.
The long-term storage fee waiver for next month applies to warehouses in the US, the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, the note said.
An Amazon spokesperson confirmed the change in an email to Business Insider.
It’s the latest change in Amazon’s marketplace policy as the company scrambles to fulfill orders of vital goods amid soaring demand following the coronavirus outbreak. On Sunday, sellers discovered most of their non-essential product shipments delayed until April 21. That followed news of cancelling all non-essential shipments to consumers in France and Italy. Last week, Amazon also stopped accepting non-essentials to its warehouses in the US and European regions so it could make more room for vital products like face masks and hand sanitizers.
Products that fall under the following six categories are considered essential by Amazon: baby product; health and household (including personal-care appliances); beauty and personal care; grocery; industrial and scientific; pet supplies.
Abe Chomali, founder of XP Strategy, an agency that helps Amazon sellers, said the move shows how Amazon’s top priority right now is bringing …read more
Source:: Business Insider