Amazon sellers scramble to keep products in stock amid coronavirus outbreak

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Amazon sellers scramble to keep products in stock amid coronavirus outbreak
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Third-party sellers with Chinese suppliers say factory closures have made it hard to keep products in stock.

The unexpected downtime could also hurt logistics companies that help transport goods from overseas so they can reach the U.S. market. During the same period last year, Unicargo's volume would be about 60 to 70 shipments per day. Now, the company is seeing "10 shipments a day or even less," said Refael Elbaz, CEO of Unicargo, a logistics and freight company whose clients include Amazon sellers.

Grunt Style, a novelty goods company, said its supply chain hasn't been impacted by the coronavirus because it gets the majority of its raw materials, such as cotton, from South America. However, as the virus has spread, Grunt Style has put plans in place with its suppliers in case the outbreak starts affecting manufacturers outside of China.

Amazon has been advising sellers on how to manage the impact of the coronavirus on their businesses. Earlier this month, the company sent a notice to sellers advising them to cancel previously placed orders that they're no longer able to fulfill. The company also suggested they put their businesses in "vacation status" to protect their listings from being demoted in search results by its ranking algorithms.

"If you run out of product inventory, the algorithm will beat you up severely," Kavesh said. "To get yourself back up to where you were is very difficult because other products have now replaced you. You'll have to spend a lot on advertising."

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