“Amazon is known for great selection, low prices and fast shipping,” Kaziukenas said. “These all broke during the pandemic. Selection was not always there, prices were not lowest because Amazon sold out, and fast shipping was gone.”
Even Amazon’s merchants, many of whom rely on the company to store, pack and ship their products through the Fulfillment By Amazon logistics service, started doing things themselves to quicken the pace of deliveries.
Bellroy has been selling wallets, smartphone cases and laptop sleeves on Amazon for seven years and used Fulfillment By Amazon because quick delivery is popular with coveted Prime members. But by the end of March, delivery times for many of its products were as long as 30 days and sales plummeted. Amazon was prioritizing essential items. So Bellroy began packing and shipping many of its products itself, and now does the logistics for about 20% of its sales on Amazon, said Lina Calabria, co-founder and chief operating officer of the company.
“When you go to Amazon and see 30-day shipping, our brand is getting mixed in with Amazon’s problems and we don’t want our customers to have a disappointing experience,” she said. ”It seems like we’ve accidentally developed a new strategy for Amazon.”
By again reducing its delivery times, Amazon will cut the risk of more merchants defecting from its logistics service, which generated about $14.5 billion, or 19% of its total revenue, in the first quarter. Many sellers are simply waiting for Amazon to clear the delivery clog, said James Thomson, a former Amazon employee who helps merchants sell products on the site through his consulting firm Buy Box Experts.
“It doesn’t matter if I advertise on Facebook or Google and redirect people to my site and offer faster delivery than Amazon,” he said. “The biggest problem for a lot of merchants is shoppers just don’t want their products right now.”