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With the economy in a steep decline due to covid-19, Amazon sellers are feeling the burn, but the leader of a respected Amazon consulting firm known as Buy Box Experts is sharing ideas to help these businesses stay financially solvent.
Buy Box Experts is a leading Amazon marketing consultant that has helped more than 10,000 Amazon sellers increase profits on the Amazon channel. Their team of experts provides personalized consulting to help sellers with effective branding strategies. This includes reducing counterfeit listings, improving customer service, running better ad campaigns, and improving optimization and inventory management with the help of specialized software that saves companies countless hours.
Buy Box Experts partner, James Thomson, said that covid-19 has dealt a devastating blow to many third-party Amazon sellers, particularly those who source from China where factories have decreased production or completely shut down.
“A lot of these companies will be in an out-of-stock situation—not just for one to two days, but a month, two months, and I’ve heard worst case situations where it could be as many six months before some of these small, private label sellers get back in stock,” said Thomson.
Thomson said that these supply chain shortages will affect many sellers due to increased dependence on China.
“Since 2013, we’ve gone from less than 1% of sellers on Amazon being China-based sellers to now almost 48-49% of U.S. sellers being China-based,” said Thomson.
Since the Amazon A9 algorithm places heavy weight on sellers’ recent activity, these shortages, even if they are only short-term, could cause sellers to lose their hard-earned rankings.
Thomson said that another major challenge is decreased demand. Though more sellers are purchasing food and other essentials online, demand for many other categories is plummeting as people’s activities are limited, and their overall buying power is down.
But Thomson, who has guided sellers through past financial downturns, is sharing the following tips to help Amazon businesses survive:
- Harvest as much extra cash as possible right now, because when things settle down, those with cash on hand will have a lot of new opportunities for growth.
- Sellers with enough cash available should continue their normal advertising as PPC levels have dropped, and they can get more bang for their same buck.
- Sellers should think about what selections they would like to be adding when things settle down. People always complain that they don’t have enough time in their days. Right now, though, many sellers have some time to work on those longer-term projects, like thinking through a catalog strategy for the next 12 months.
Thomson is the former director of Amazon Services and the first Fulfillment by Amazon account manager. He and Buy Box Experts Founding Partner, Joseph Hansen, have managed over $2 billion in revenue for Amazon sellers and have a combined total of more than 30 years of e-commerce experience.
Thomson said that the most important points for sellers to remember are that today’s challenges are temporary and forward planning is essential.
“As painful as this seems right now, it won’t last forever,” said Thomson. “Those companies that use this time to adapt and prepare for the future can emerge stronger than ever.”
To learn more about Buy Box Experts’ brand management services and recommendations for weathering covid-19 challenges, visit www.BuyBoxExperts.com.
About Buy Box Experts
Buy Box Experts specializes in Amazon account management, including A+ content detail pages, Amazon product SEO, and brand equity management. Amazon sales consultants and branding strategy managers at Buy Box Experts help businesses sell more on Amazon and protect their brand equity.
