Impact of Novel Coronavirus Covid-19 on the Amazon

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The Novel Coronavirus was labeled as the pandemic disease on March 11, 2020. This had an enormous effect on the flow of global businesses as the countries one after another, started to lockdown their affected cities, and even some countries lockdown the entire nation like in Italy and Spain; to protect their citizens from this swiftly spreading virus. Here I’m going to give a little brief about what impact did this virus has on the renowned organization Amazon.

Earlier, Amazon benefitted from the spread, in a way that most of the sales were shifting toward the Amazon, instead of its rival Ali Baba, as is shown in the graph presented at the end of this paper. Look at how it was flourishing in February, but then suddenly it went all the way down after march 11, meaning after the virus was labeled as pandemic.

On the distribution and logistics side, Amazon, UPS, and FedEx have all reported delivery delays due to coronavirus problems triggered by spikes in online orders. Amazon said both Prime Now and Amazon Fresh deliveries were impacted by the surge straining power, according to Bloomberg.

Due to the ongoing lockdown in India, Amazon has made necessary changes in its delivery patterns. It has announced that it will not deliver low-priority items. Amazon India announced on Tuesday that it would suspend orders for non-essential goods to prioritize the urgent needs of customers and focus solely on delivering the necessary goods. The global senior VP and country leader of Amazon India, Amit Agarwal, has taken to Twitter to make the announcement and writes, To serve our customers’ most urgent needs while also ensuring the safety of our associates, we are prioritizing (with immediate effect) all our resources to serve products that are currently high priority. Stay safe!

Fears of seeing goods go out of stock could be part of what motivated some third-party vendors to price gouge on Amazon when the virus first began to take root in the U.S. Some of the biggest culprits included a pack of two 12-ounce Purell hand sanitizer bottles being sold for over $100 and Clorox wipes being sold for 8x their normal cost. The objects and a comp have since been withdrawn.

Here is another hit from the BusinessToday website. “Effective immediately, Amazon will stop receiving FBA (fulfillment by Amazon) orders from customers on non-essential products on its Italy (Amazon.it) and France (Amazon.fr) site, so that operations employees can focus on fulfilling and delivering on the orders that consumers need the most now,” according to a message Amazon.com sent to Chinese sellers over the WeChat social media platform.

During euphoric periods, investors appear to suspend the skepticism. During these times, high-growth, creative, market share-capturing companies such as Amazon (AMZN) draw positive press and venture capital, such as “travel to honey.” And when these euphoric times come to an end, every “investor cult” that suspended denial on the way up is slow to accept the new reality and acknowledge that things are changing.

That, I guess, is the case today with Amazon. Articles circulate about Amazon’s momentous recruiting attempts, management’s frenzied attempts to satisfy the “surge” demand triggered by people buying anything online (Amazon Prime) now that a large portion of the population will “shelter in place.” The overarching trend is that coronavirus / COVID-19 has been good for Amazon’s business.

This presentation of the stock market says more than the words of a writer.

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