Advice For Amazon Sellers During CoronaVirus (Amazon Expert Weighs In)

Even in normal times, dealing with Amazon is an adventure. The company is always changing, making minor adjustments that lead to major changes in how their third-party sellers do business. 

But since the COVID-19 outbreak, Amazon sellers have seen massive shifts in business & consumer buying habits, in addition to platform changes.

What is really happening in the world of Amazon and how should Amazon sellers react?

We recently sat down for an interview with Jules Denora of Rapid ECom Solutions to find out. (You can find his FreeUp profile here.)

He’s what you would call an Amazon expert (he’s not a fan of this label, but the shoe fits).

Since Jules helps people with new accounts become multi-million-dollar-a-month sellers, he has to stay on top of these changes, figure out the best way to adapt to them, and then communicate those strategies to his clients. 

Here’s what advice he had for Amazon sellers during coronavirus.

Enter Jules:

Who Is Jules “The Fireman” Denora?

When someone asks me what I do, my normal response is “everything”. If I had to make a list, I’d probably start with:

• Creating Optimized Listings
• PPC – Advertising
• Keyword Research
• Product Launches /Ranking
• A+ Content
• Storefront Creation
• Account Management
• Plan of Actions – Account Health – Listing Reinstatements 

As long as that list seems, it only scratches the surface of what I handle on a daily basis.

I’m known as a fixer. If someone has a problem with anything Amazon related, they come to see me. Nathan Hirsh, one of the founders of FreeUp, used to have a ticket for me labeled “Fireman”. If your Amazon business is on fire, I guess that would make me the fire hydrant?

I also take care of the uncommon issues that the average Amazon user isn’t equipped to deal with. Did Amazon unfairly remove some of your listings? Have a problem with a customer making unfair claims against your account? I’m on it.

A lot of freelancers don’t want to deal with these issues. They stick to PPC or advertising because it’s easy to blame something else if they don’t get the results they want, but I’d rather handle A to Z Amazon. 

I started out on Amazon as a seller, so I have a unique perspective. I know what it’s like when something goes wrong with your account and customer service can’t help you.  I’m actually working with a few clients now that have had listings removed. It’s not easy, but it’s satisfying work. 

When you can help someone with uncommon issues, they’re more likely to work with you in the future. The first client I ever had on FreeUp still gives me work and refers me to others because they know that I can help them with anything. 

How Jules Became An Amazon Expert

I started selling online in 2005 selling used manufacturing equipment on eBay and created my first LLC at 16!  

In 2015-2016, I got into private label building brands and selling on Amazon. It’s easy to get the years mixed up when you’ve been running LLCs since the age of 16. I’ve also taken almost every course on Amazon out there. If you’re thinking “well, did he take…”, the answer is probably yes. 

One of the main reasons for my Amazon success now is that I’ve been in the trenches. Most consultants haven’t sold physical products online before. It’s easy for someone to make suggestions based on theory, but I can tell my clients about similar situations I’ve personally been in before and tell them what worked for me. This helps me build trust and let’s them know that I’m actually invested in their success. 

My past experience gives me a unique perspective on everything that’s happening now. 

What Is Happening Right Now With Amazon?

As of April 13th, 2020, there are over 559,000 cases of the COVID-19 virus in the United States, with 22,071 deaths. Both the human toll and the impact on the global economy are factors that weigh heavily on the mind of anyone that does business with Amazon. 

This current situation with the Coronavirus makes experience and a desire to learn more important than ever. What makes this situation unique is that we’ve seen supply issues and an economic downturn before, but nothing on this scale. The fact that these two things are happening at the same time is unheard of. 

With that said, my past experience helps me stay calm. We’re going to see a lot of sellers start to panic and make decisions that will hurt them long-term. The best strategy right now is to resist the urge to change the way you do business. It’s okay to make minor changes, but there’s no need to panic and change the way you do business. 

How Is Amazon Responding To The Virus?

Amazon is starting to adapt to the current situation, but so far the company’s focus has been on helping its employees instead of 3rd party sellers.

Amazon has suspended shipments, phone support, and the accounts of many hard-working sellers.

As of the 4th quarter in 2019, 53% of paid unit sales come from these 3rd party sellers. 

Some of the issues that these sellers face include fair market pricing issues and price gouging.

While Amazon has tried to control these things, some honest sellers have found themselves caught in the crosshairs. 

Amazon has a middle management system that you can communicate with, but the problem is that the company often provides canned responses that contradict each other. Sellers have to jump through too many hoops to get anything done, which is why they need a professional to help them. 

Becoming brand registered used to make a difference, but now it seems like you lose more control over your brand and have to do everything through email.

The problem is that it’s harder for massive corporations to quickly evolve. Every decision they make will affect millions of employees and sellers. They also have to consider their supply chain, profits, and the needs of their customers. 

Once they do settle on a plan moving forward, they have to implement it on a global scale. For the time being at least, third-party sellers are in wait and see mode. 

How Can Amazon Sellers Position Themselves For Success In The Future?

The first thing to do as a seller is to focus on your supply chain. Now is the time to work on sourcing your products strategically.

Sellers should also consider FBM (Fulfilled by Merchant) and adjusting their advertising strategy to meet current bids. Shipping times have reached 30-days, making cost-per-click go down for most keywords. 

Some accounts are performing better than ever, while others struggle to stay afloat. Many sellers have had to deal with a double whammy of sorts: China wasn’t producing goods because of the Chinese New Year, and now after the virus, the goods are sitting in warehouses on pallets waiting to ship, but they can’t right now. It’s a tricky situation for sellers to navigate. 

With so many flights getting canceled, sellers need to count on longer lead times. Since there’s no way of knowing what will happen next with the virus, it’s difficult to predict when those lead times will decrease, causing uncertainty for both sellers and buyers. 

Can You Sell Masks & Hand Sanitizer?

I’m asked about selling masks and hand sanitizers on Amazon at least once a day. 

That’s a hard no. Right now, it’s too easy to find yourself caught in Amazon’s crosshairs. Supply has gone way down and demand is higher than ever, meaning prices will naturally rise. The problem is that if Amazon thinks you’re price gouging, they will shut you down now and ask questions later. 

What Should Sellers Focus On?

Amazon has always changed daily, but now those changes are having a more dramatic impact on my clients. 

It’s interesting because every day I wake up to different news. A few weeks ago, the smart move was to wait and not sell anything because of shipping delays from FedEx and UPS. I advised clients to use FBM to fulfill orders. Then, Amazon stated that they wouldn’t penalize accounts over shipping delays. 

Amazon has created an interesting catch-22 for their sellers. They say that you can’t raise the price more than 10% above the fair market price, but they don’t tell sellers what the market price is. They have their own data based on Amazon and other marketplaces, but the seller has to play a high-stakes guessing game. 

If a seller has to pay a premium for their supplies, they might not be able to sell the items at a price that would help them break even. It’s best to avoid medical supplies right now. 

The main thing I’m telling my clients is that they just have to stick it out. Continue doing what works. The market will improve, and when it does, it will favor those that have continued to do the right things. By sticking to what works and using FBM to fulfill orders, sellers can ride out this storm. 

What Is Amazon Doing For 3rd Party Sellers?

We should give Amazon credit for a few things they have done so far. They’ve suspended the loan repayment program without interest until May 1st and will forgive late shipping metrics. Unfortunately, that’s where the good news stops. 

Amazon is still limiting shipments to fulfillment centers, and many customers are looking at 30-day deliveries. There’s no phone support available to sellers, but Amazon is still suspending accounts and products. That leaves many sellers having to deal with canned email responses when they’re trying to get answers. 

Customers are also having issues, which isn’t good for sellers. Prime members have to pay for shipping even though they’re paying $129 a year for free two-day shipping, and Amazon isn’t waiving that fee. 

Now that Amazon has decided to hire 100,000 workers and pay people $2 more per hour for working during the pandemic, that could help lower the time it takes for consumers to get products, but it depends on how everything works out with shipments to fulfillment centers. 

How Are Consumer Buying Habits Changing? How Can Sellers Take Advantage?

There’s great potential for sellers that offer vitamins & supplements, office supplies, workout equipment, books, children’s learning toys, arts & crafts, and obvious medical supplies in the current climate.

Since most people are under stay at home orders, Amazon’s traffic has surged. Before the pandemic, Amazon received around 3-5 million unique visitors per day. That number has risen, and those new shoppers aren’t going to want to start going to malls once the threat of COVID-19 subsides. 

The virus could also lead to the permanent shutdown of several retailers, furthering Amazon’s strength. Some of my clients that only sold a few units a day are now selling 100’s. Some sellers sold hundreds of units a day before the virus; now they’re selling a few dozen. It’s a mixed bag of results, but everything should even out over the next few months.

Of course, luxury non-essential items have seen a big drop, but there’s hope for them as well. Once the economy rebounds, there are going to be more shoppers on Amazon than ever. If you’re a seller, grit and determination will allow you to survive and thrive. It’s really a waiting game at this point. 

Final Advice For Amazon Sellers

I really want to stress this message: do not fall into the trap of selling hand sanitizer, masks, and gloves. If you haven’t sold these items before, don’t start now. Not only will Amazon get suspicious, but your regular customers will as well. 

Donate any equipment, face masks, and gloves you can to your local hospitals and healthcare workers. They need all the supplies they can get. They’re risking their health and the health of their families to take care of us. We need to help take care of them. 

If your business is doing well, use this time to invest in yourself. Read. Learn. Bulletproof your business by innovating and developing a contingency plan. Most importantly, stay healthy.

The main thing that I want everyone to understand is that we will persevere. Everyone is in this together, and things will get better. 

Conclusion

We’d like to thank Jules Denora for the interview. You can learn more about Jules and his company, Rapid ECom Solutions on his website or contact him about consulting or services through FreeUp here.