Buy Box Experts Warns of Shortage of Q4 Warehouse Space for Amazon Sellers

With the pandemic driving unprecedented growth in online sales, Amazon is running out of warehouse space and scrambling to find enough last mile delivery providers. All of this, and Q4 isn’t even here yet. In light of this unprecedented Amazon buying frenzy, Buy Box Experts is warning sellers that their only hope of keeping up with the Q4 sales surge is to get inventory in now.

Buy Box Experts is a respected Amazon marketing agency that has helped over 10,000 sellers grow their brand on the Amazon channel. Their consultants — many of whom are former Amazon employees — share their insider knowledge to help sellers develop customized distribution and content strategies for distinguishing themselves from the competition. Their proprietary software provides sellers with competitor assessments and inventory forecasts and automates processes such as listing optimization so that sellers are freed up to focus on the big picture.

James Thomson, Buy Box Experts Partner, said that Amazon is experiencing explosive increases that their logistics cannot currently support.

“Amazon is seeing higher sales on any given day in 2020 than they saw on their biggest sales days last year. So shopping holidays like Prime Day and Black Friday — that’s every day now,” said Thomson.

Thomson said that while the surge may be good for many Amazon sellers now, it could spell disaster as sales climax in Q4.

“In a typical year, sales are up 30% during Q4, but some sellers may see up to a 200% gain during the holidays, and that could put additional stress on an already strained Amazon fulfillment infrastructure,” said Thomson.

Thomson had the following advice for online merchants:

• Get inventory to Amazon warehouses today. The warehouses are overflowing, and merchants who don’t get products in soon will be turned away. Companies should stock enough merchandise to carry them through December as the likelihood of stocking out raises every day.
• Anticipate delayed deliveries. This is another reason to get inventory in early. Carriers could wait weeks to get a window at crowded loading docks at Amazon warehouses, and last mile delivery services are in short supply. Early-in merchandise will fare far better. Sellers should also adjust their cut-off dates for Amazon shoppers so that they know to get orders in early to make holiday deadlines. For example, if your “order by” date for pre-Christmas delivery is usually December 23, move it a few days earlier.
• Have a backup. Sellers can hedge their bets with a backup plan. Reaching out to a third-party logistics facility (3LP) might save sellers if Amazon cannot accommodate them.
• Choose Amazon. They’ve carried the day during the pandemic, and it’s good to capitalize on their momentum. And even though they are stretched thin, they are coping with the influx much better than other channels, so they’re a far safer bet right now.
• Opt for needs-based merchandise. With unemployment creeping up and a lack of consumer confidence compounded by uncertainty over the upcoming presidential election, holiday gifts will be more needs-based than wants-based. In other words, it’s a bad time to be selling luxury handbags.

“The stakes are very high this Q4,” said Thomson. “There’s a lot of money to be made, but a lot of seller reputations could be tarnished if they can’t keep up with the rising tide of orders.”

Prior to joining Buy Box Experts’ Amazon marketing company, Thomson served as the director of Amazon Services (the division charged with recruiting new sellers) and the first Fulfillment by Amazon (FBA) account manager. He and Buy Box Experts founding partner, Joseph Hansen, have over 30 years of e-commerce experience. They are the founders of Prosper Show, the largest U.S.-based educational conference for Amazon sellers (sold in 2017 to Emerald Expositions, NYSE: EEX).

To learn more about Buy Box Experts’ account management services or get guidance for preparing for Q4 sales, 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.