Amazon Suspends Non-Essential Third-Party Shipments

Want that new-release DVD or Blu-ray Disc from Amazon? If it’s coming from a third-party vendor, you might wait awhile. The e-commerce behemoth March 17 announced it would limit shipments of all non-essential products to its warehouses across the country.

Amazon is now limiting shipments to medical supplies, household staples (i.e. toilet paper) and other high-priority items until April 5, according to an internal memo to third-party sellers.

“We are temporarily prioritizing [these] products coming into our fulfillment centers so we can more quickly receive, restock and deliver these products to customers,” read the memo reported by Business Insider.

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Priority items include health and household items, beauty and personal care, grocery, industrial and scientific. DVD and Blu-ray Disc movies were not on the list.

“We are seeing increased online shopping, and as a result some products such as household staples and medical supplies are out of stock,” read the memo.

Steve Yates with Prime Alliance, which assists Amazon sellers, said the drastic move is in response to coronavirus, which continues to spread rapidly with more than 2,000 cases reported in the United States.

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Yates told the publication that third-party sellers he’s talked to have seen their revenue plummet 40% to 60% on Amazon due to revised shipping guidelines.

“It may be difficult for some sellers to ship every item themselves, but if they want to have their products for sale on Amazon, they have no choice until April 5,” said Will Tjernlund with Goat Consulting in Minneapolis, Minn.

The shipment change could wreak havoc for eTailz.com, the Trans World Entertainment Corp. subsidiary specializing in third-party sellers on Amazon.

TWEC recently offloaded its f.y.e. (For Your Entertainment) home entertainment retail chain to focus on eTailz — the latter posting a 35% drop in revenue in its most-recent fiscal period. And that was before the virus pandemic. The net loss was $1.3 million.

 

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