Amazon.com, Inc. (NASDAQ:AMZN) is now committed to delivering essential supplies until April 5, 2020, to meet the growing demand from people who are confined to their homes due to coronavirus outbreak. The company gives priority to the delivery of essential items such as groceries, household staples, and medical supplies. Amazon will not accept items other than household items at its warehouses in the US.
Third-party vendors and sellers suffer
Third-party vendors and sellers will suffer from the unprecedented decision of Amazon to restrict to supply of household items and medical supplies only. The online retailer will ensure the availability of dog food and soaps for consumers in large numbers. However, the customers could expect delays for non-essential items like electronics and clothing.
Amazon’s message to sellers
In an official forum, Amazon informed its sellers that essential items like medical supplies and household staples are out of stock because of increased online shopping. Hence, Amazon is giving priority to restocking of products such as medical supplies, household staples, and other high demand items at its fulfillment centers. It helps the company to receive essential items quickly and deliver to the customers. According to a report from news outlets such as Vice last week, Amazon is running short of items like toilet paper.
Amazon to hire 100k workers
To ensure supply of essential items to the consumers, Amazon announced to hire 100,000 workers. It also decided to hike the hourly wages of its employees in Canada, the US, and the UK by $2. More than 125,000 workers are already working at its North American fulfillment centers.
Amazon also announced a relief package of $25 million to support seasonal workers and delivery drivers, who are affected by the coronavirus. It also allowed workers last week to go on unpaid sick leave through March 2020. The online retailer will deliver non-essential items available in its warehouse. However, it will not accept the replenishment of non-essential items in its warehouses for the next three weeks.
According to eMarketer, the market research firm, Amazon receives 39% of all online orders in the US. Amazon is also limiting items shipped through the Prime subscription service to handle the surging demand for essential items.