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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The Amazon Coronavirus Index tracks the popularity of items like face masks, wipes, medical gloves, soap, hand sanitizers, toilet paper, paper towels, and emergency food on Amazon. Nearly 40% of e-commerce spending in the US happens on Amazon; thus, shopping trends on the site are indicative of the overall consumer trends. For the last two weeks, coronavirus-related shopping has overtaken e-commerce.
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Amazon launched in the Netherlands on Tuesday, March 10th. Over a thousand local retailers joined the marketplace already, and more than thirty thousand worldwide sellers in total were present at the launch. The company is leveraging its other European marketplaces as well as existing fulfillment infrastructure to kickstart the Amazon Netherlands launch faster than any other previous new market.
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Jeff Bezos has famously said, “Your margin is my opportunity,” implying that Amazon delivered better prices by removing the costs added by the middlemen in the retail supply chain. But what is maybe missed by the statement, is whether there was value created by that margin.
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