Lot's of things are changing quickly so remember that this blog and video were posted on March 15, 2020. In this blog and video I'll only be covering what is happening with Amazon FBA and the coronavirus.
I don't want to sensationalize anything, for that reason in this video i'm only going over how this can affect YOUR business. We'll cover the facts, questions and also some tips, especially if you're just starting out and if you already have an Amazon FBA business.
Fact 1: Coronavirus has held up production. Many manufacturers are only now coming back to work and many others are still closed. Some sellers are unable to get in contact with their manufacturers and therefore are unable to re-order stock.
This is normal and is happening to some people out there. Continue to reach out, eventually things should go back to normal.
Fact 2: Shipping has gotten much more expensive... Air shipping has gotten drastically more expensive because many airlines have stopped flying which means that there is much less availability on planes for cargo.
Many people have switched to sea shipping for that same reason and so naturally, sea shipping has also gotten more expensive.
It is normal if your manufacturer gets back to you and asks for more money for shipping as these prices have gone up in recent times (be wary of suppliers who quote a steep increase).
I posted a thread in our facebook group asking if there were any questions about the coronavirus and how it relates to amazon - here are the questions I received:
Is it normal that suppliers are asking for double the price for products citing the virus as a reason?
To an extent, the prices may go up depending on the product and where the manufacturer is located. Be wary of steep prices increases as it could be the supplier trying to take advantage of you and the situation.
Tip: If you're starting on Amazon now make sure to get quotes for right now (during the virus) and for later (after the virus has been dealt with) so you are not stuck paying inflated prices for ever.
Should you start amazon in the midst of this virus?
There will always be reasons to not do something. If you have the means I believe it is a good time to start.
Do the products need to be disinfected before leaving china?
According to news sources and the medical teams on the front lines, no the products do not need to be disinfected as the virus cannot last long outside the body.
Will this impact sales?
Very difficult to say at this moment. It could have a positive effect a negative effect or just stay the same. We will need to wait and see what happens going forward.
If you have any questions about the situation or just want to be connected to a group of like minded people make sure to join our free group here: https://www.facebook.com/groups/491245121276080/
1. Obviously delay travel to China
2. Continue business as usual, keep doing product research and working on your business. Remember if you are doing product research some promising markets may be inaccurately reported because many products are now going out of stock making certain niches look better than they are.
3. Continue to source from China, it seems that they have gotten the situation under control for the most part and are reopening many factories. Looking elsewhere is not necessary and can cause issues down the line when this situation is dealt with. Plan long term, not short term based on the virus. If the products future is better longterm being manufactured in China then continue to do so.
4. Get an inspection done. Before shipping out any of your products make sure to get an inspection done as many of the products coming out of China will be of low quality due to the Chinese New Year and now the coronavirus. The factories are back ordered and are trying as fast as they can to finish manufacturing and make up for lost time.
5. If you are currently selling on Amazon, increase your prices slightly to remain in stock in case you cannot reorder. Many of the competitors will sell out and you will remain the sole option.
6. If you are NEW to amazon, don't look for reasons not to start. If you have the means keep moving forward. This is a great opportunity as many people are putting off starting their businesses.
7. Don't forget about the manufacturers. Reach out, ask how they are and take this time to build relationships with them. They are people too dealing with this.
Lastly, here is a quote. Take from it what you will.
Be fearful when others are greedy. Be greedy when others are fearful.
- Warren Buffet
Talk to you next time,