Amazon Marketing Tips

Sellics Survey: Brands Assess the Impact of the Coronavirus Crisis

Amazon sellers are growing increasingly anxious about the long-term adversity of the ceaseless pandemic spread of the novel coronavirus (SARS-CoV-2). 

We want to support our customers and inform the public in the best way possible. To this effect, our first survey focused on the sentiments of our users. We wanted to know:

Are Amazon Sellers preparing for a long-lasting economic crisis? How hard have they been hit? Or has the viral outbreak provided a silver lining and boosted sales?

We also dig into consumer demand and supply logistics, as well as advertising costs and budgets. 

We will continue to provide deep-dives into these topics, so make sure to return regularly. Sign up to our weekly COVID-19 newsletter to stay updated (go here if you’re a vendor).

Amazon and the Coronavirus: Overall Outlook & Impact

Managing Expectations

We asked our customers: 

How do you expect the coronavirus crisis to impact your Amazon business over the next 3 months?

Impact Expectations

The anxiety caused by the current volatile situation is understandably high.
Source: Sellics

55% of businesses are concerned about the future, while 24% don’t expect any significant changes. 21% of our sellers and vendors are more hopeful and believe the crisis could benefit their business.

Duration of the Crisis

We asked our customers: 

How long do you expect the COVID-19 crisis to last?

Most Amazon sellers and vendors anticipate that the crisis has knock-on effects and will take a long time to subside. Source: Sellics

A majority of 56% expects the crisis to last for 3 to 6 months; only 16% believe it will all be over in a couple of months. That means 84% expect the crisis to last 3 to 6 months or longer.

I’m hoping we can take a hit in the short term for the benefit of the long term. I just need to survive the short term hit so I have something I can build upon when this is over.

Sellics User

Fear of Recession

We asked our customers: 

What do you expect will happen after the coronavirus crisis?

The trend is clear — sellers are preparing for the worst. Source: Sellics

Almost 70% expect a long-term recession to follow the Sars-CoV-2 pandemic. 22% believe the economy will recover, albeit slowly, while just over 8% predict a healthy restart.

I think when stores open again people will shop a lot without thinking too much

Sellics User

The Impact of COVID-19 on eCommerce

We asked our customers:

Will eCommerce benefit from the crisis?

As bleak and ambiguous as the circumstances may seem, Sellics customers are optimistic that eCommerce will prevail in future scenarios. Source: Sellics

58% of the participants think that staying at home while being more conservative with spending will, in sum, cause consumers to spend more time with online shopping, while almost 32% believe the same reasons will cause them to order less

Key Insights: Demand, Supply, and Advertising

To give Amazon sellers and vendors the best advice possible, we collected some first-hand reports about some tangible effects of the COVID-19 crisis. 

We will continue to deep-dive into these subjects and provide you with actionable strategies to maximize your success in this time of uncertainty, so remember to return regularly.

Click here to sign up for our weekly COVID-19 newsletter (go here if you’re a vendor).

Demand 

We asked our customers: 

How has the pandemic affected the demand for your products on Amazon?

Impact on Demand

Source: Sellics

50% of the participants reported a decline in sales. Conversely, some winners also emerged from the calamity — 23% revealed that the demand for their products has increased.

I do believe this will have a long-lasting positive impact on our business as a food manufacturer. Our sales have increased tremendously in people’s efforts to stock up their pantries. I believe this has introduced our brand to many, many new customers.

Sellics User

What are Americans buying on Amazon since the COVID-19 pandemic hit?

For meaningful insights at a glance, download our ‘Top & Flop 50 Products on Amazon.com: Shopping Trends During the Coronavirus Crisis’ analysis.

Supply

We asked our customers:

How has the coronavirus pandemic affected your supply chain?

Effects on Supply Chain

Source: Sellics

There are two clear trends here:

  1. Shipping and production are affected: 50% of sellers see a negative effect on shipment times, 46% experienced a drop in supply. 
  2. Prices are stable: On the bright side, the majority of participants report no impact on the COGS — no changes for 26%.

A couple of months ago, I wasn’t able to receive products because the factories were shut down. Now my suppliers are working on my orders, but I’m worried if I’m going to have issues getting it here and […] into Amazon warehouses.

Sellics User

Advertising

We asked our customers:

  1. Have you observed any changes to your advertising performance?
  2. How do you plan to change your advertising budget?

Advertising cost is where the logistical anxiety of the COVID-19 crisis finds a home. 

Advertising Sales

Source: Sellics

1 — Impact on advertising sales: 35% see a decrease in advertising sales, while the effect on CPCs is yet unclear.

Impact on Advertising Budget

Source: Sellics

2 — Impact on advertising budget: While almost 50% plan no change to their advertising budget, 12% paused their advertising campaigns (see above), and a total of 42% plan to decrease their advertising budget.

The spread is mirrored in the sentiment of our customers. Some chose to be on the safe side:

Since I’m unsure about when I’m getting more inventory from my suppliers, I’m not advertising. I don’t want to pay for advertising if I’m going to be out of stock.

Sellics User A

… others consider the safe side to be investing in advertising:

Advertising is very important during this time to get your brand and products in front of the consumer as always.  More time is being spent viewing media/social media. Be where the consumer is Always

Sellics User B

Finally, the key question remains: what are the sensible measures that brands and agencies should take right now? In the following weeks, we will present deep-dives in all key areas — from advertising to supply — to help you to navigate through this global crisis.  

How has this survey helped you? What kind of decisions will you make as a result? Let us know in the comments! 

We are determined to bring you the most reliable and up-to-date information in this dynamic new setting for your Amazon business. Don’t forget to sign up for our seller or vendor newsletter to stay in the loop. 

To good health,
Team Sellics

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