The spread of coronavirus across the US is causing new challenges for Amazon sellers.
According to Amazon-focused ad agency Orca Pacific, sales for essential items have increased by single or triple digits while sales for non-essential items have fallen by 20% to 40% from February.Trevor George, who runs a marketplace called Trevco that sells licensed apparel and accessories on Amazon under the namesHe calculated what it would take for him to break even and pulled all but the most cost-effective ad campaigns.
"We are seeing increased online shopping, and as a result some products such as household staples and medical supplies are out of stock," read Amazon's email. "With this in mind, we are temporarily prioritizing household staples, medical supplies, and other high-demand products coming into our fulfillment centers so that we can more quickly receive, restock, and deliver these products to customers."to help manage the increase in sales.
"We've seen a significant increase in volatility — none of the normal rules apply," said John Ghiorso, founder and CEO of Orca Pacific, a Seattle-based agency focused on Amazon.In addition to running Trevco, George is also CEO of Blue Wheel Media, a digital agency that helps brands develop e-commerce strategies and buy ads on Amazon.
Orca Pacific's Ghiorso estimated that sales for non-essential sellers decreased between 20% and 40% compared to February while sales for essential items have increased by double or triple digits in the same time period.Sales of consumer-packaged goods like toilet paper, skincare products and food are exploding. Blue Wheel Media said sales for products like skincare and hair care are up about 70% compared to the beginning of the month.
"It's like the holiday season all over again," she said. "At the same time, we're still planning for the worst-case scenario." She said the worst-case scenario is that the government or Amazon will halt deliveries.As advertisers spend more, sources said ad prices for key ad placements is increasing. Blue Wheel Media said cost-per-click prices increased 10% for hair care brands in the past few days.
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