Thousands of shoppers on Walmart were recently disappointed when shopping for face masks and other essential items. The Walmart marketplace is to blame. A few dozen fraudulent sellers used fake tracking numbers and other tricks to accept orders that never reached the consumers.
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Competing marketplaces are not seeing a significant acceleration in new sellers as Amazon's fulfillment struggles caused sellers to reevaluate their dependence on the Fulfillment by Amazon (FBA) service. One month after Amazon started prioritizing the stocking of essentials and high-demand items in its warehouses, making many sellers that used the FBA service to look for other warehousing providers, it didn't drive sellers to look for alternative marketplaces.
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Amazon has removed the deals page and product recommendations from its homepage, eliminated the frequently bought together list for each product and is no longer accepting new discount coupons from brands. The company has implemented these changes over the past thirty days to achieve something it never did before - to reduce shopping on Amazon.
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Customer satisfaction with Amazon marketplace sellers reached a new low in March, driven by order cancelations, long delivery estimates, fake tracking numbers, price gauging, and other issues. In the U.S., 92% of customers had a positive experience last month, down from 95% a year ago.
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Demand for online groceries has surged during the COVID-19 pandemic, and Walmart is a clear winner so far. Walmart Grocery became the number one most downloaded app in the Shopping category on the iPhone App Store. Overtaking Amazon’s, as well as other retailer’s apps.
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In March, most shoppers on Amazon looked for toilet paper, face masks, hand sanitizers, and other essentials, as well as items for working from home, at home sports equipment, and offline entertainment. However, most of the in-demand searches returned no items in stock.
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Amazon India has halted most of its operations as well as deactivated all of the nearly 600,000 marketplace sellers as much of the country is under lockdown to prevent the spread of coronavirus. The country’s 1.3 billion people are in a three-week lockdown.
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Nearly 750,000 sellers globally and more than 250,000 sellers on the U.S. marketplace use the Fulfillment by Amazon (FBA) service. Amazon's attempt to prioritize items that are the highest priority for shoppers during the Covid-19 pandemic has sparked panic among those businesses.
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Thousands of new sellers have joined the Amazon marketplace to disappoint shoppers looking for face masks, hand sanitizers, and other essential items. Tens of thousands of negative seller reviews are flooding in as shoppers complain about price gauging, low quality, canceled orders, and not receiving orders after weeks of waiting.
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More than half of new sellers on Amazon in March were from China, an all-time high. Every year, February sees the smallest number of new Chinese sellers due to the Chinese New Year virtually shutting down the country for two weeks. In March, growth resumes, and so far in 2020, it is setting new records.
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