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If you are an Amazon FBA seller, you might feel uncertain and confused about where your Amazon business is headed due to the challenges of the ongoing Coronavirus global pandemic. There can be a variety of obstacles you are currently facing such as supplier shortages, FBA inbound shipment restrictions, and other logistical shortfalls just to name a few. However, if you closely examine which organization should grow even stronger than ever before by the effects of the Coronavirus, you will come to learn that Amazon is positioned to succeed above the rest. The main factor behind Amazon succeeding is the visionary leadership of its iconic founder, Jeff Bezos. Here are the main components of why Amazon is positioned to rise and shine during these troubled times in ways that many of us might not have taken into consideration.

Amazon.com Marketplace

While a historically unprecedented amount of tens of millions of people in the US are stranded in their homes until further notice due to the raging Coronavirus pandemic, Amazon.com is the ultimate marketplace that most Americans love and trust to purchase anything possible…except for some toiletry products in these frenzied days. The wide scope of Amazon’s online product catalog, along with its quick and efficient deliveries and supreme customer service, is rising higher in importance than most retailers. The scale and magnitude of what is being done right now to stop the spread of the virus on a global level, and Amazon’s involvement in solving this problem, will be remembered and studied in history textbooks which will ironically also be sold on… Amazon.

It is safe to assume that Amazon’s first-quarter sales revenue in 2020 will turn out to be at an all-time high as if the fourth quarter of 2019 has spilled and poured right into the new decade. Amazon is planning to hire a whopping amount of 100,000 people in the coming weeks to meet the demand of its customers, while most traditional brick and mortar retailers are hanging on by a mere thread to survive, or already melting down. The backbone of Amazon’s marketplace is its third-party sellers, which enable the cluster effect of endless brands and products that are available on the platform at competitive prices. Although the most rewarded product categories that are soaring in sales right now on the platform are related to day-to-day essentials, other categories will soon follow when consumers will feel more settled and comfortable in knowing they have their basic needs covered while they wait out the pandemic at home. In addition, people who have, for the most part, never shopped online before, and are now stuck at home, are forced to shop online and Amazon will probably be the first and only place they will turn to, which will create a whole new layer of a customer base for Amazon and plenty of new opportunities for third-party sellers to market their goods.    

 Amazon Web Services (AWS) Cloud Computing

Most of the people who are stranded at home due to the Coronavirus pandemic are spending their time working remotely, playing live video games online, binge-watching streaming services like Netflix and Amazon Prime, and video conferencing. Most of these types of internet-based activities run on the backbone of Amazon’s AWS cloud computing platform. Amazon AWS is the market leader in online cloud computing and most of the cloud computing functions of major internet companies and government agencies run on AWS. Therefore, it is also safe to assume that Amazon’s cloud computing business unit is also experiencing a booming demand, which will increase revenue and profits as well.

Amazon Stake in Whole Foods Market

Brick and mortar stores that are still open during the shutdown frenzy of the pandemic are grocery stores that are deemed essential businesses. Rest assured that Amazon has a stake in this game as well by swallowing up Whole Foods Market for about $14 billion back in 2017. Whole Foods Market was a profitable company when purchased by Amazon with higher than usual profit margins than other grocery chain stores. Most grocery chains stores should be experiencing a great lift in their business activity and Amazon via Whole Foods Market should enjoy no less. This marks another successful turn of events for Amazon’s strategic purchase of a grocery chain store.

Amazon Stake in Twitch

Twitch is an online gaming platform that Amazon purchased back in 2014 for about $1 billion and specializes in streaming live and recorded video games in which each user has its own Twitch channel. Essentially Twitch is a social media platform dedicated to the gaming community. This community should be experiencing an unprecedented boom in its growth right now as so many people are stranded at home and are in a great need for long-lasting,  stimulating experiences that can replace playing physical sports outdoors, or even watching live sporting events since most of them are canceled until further notice. Once again, Twitch marks another remarkable milestone in Amazon’s incredible ability to grow its business activities with an unmatched visionary scope into the future needs of humans.

Summary

When consolidating together most of the business units of Amazon and the unique component that each one serves, you find that Amazon is ready to march firmly into the future with great confidence and benefit all its stakeholders. These stakeholders are an integral part of the Amazon ecosystem, whether it be third-party marketplace sellers, suppliers, video gamers, software developers, truck drivers, stock investors and much more. If your business fits in Amazon’s ecosystem and future needs, you should hold the belief that you are in the right place at the right time, even though you might be experiencing a few setbacks due to the COVID-19 pandemic, which will hopefully get solved sooner than later. The future should hold great benefits for Amazon, and as long as you are able to align yourself to Amazon’s ever-changing needs and adapt to such a dynamic, you should be able to reap the promised benefits and rewards.    

We hope that you find this article helpful in getting some clarity of where things might be going for Amazon during the COVID-19 pandemic. If any questions or further advice is needed, feel free to reach out to us at support@getida.com.

Good luck, and stay safe and healthy out there!

If your sales have been affected by COVID-19, now would be the best time to secure any financial recovery. If you need help securing FBA reimbursements, click on the Sign-Up link for GETIDA below: 

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