As COVID-19 spreads sickness and panic throughout the world, many economists are predicting a global recession.
For us Amazon sellers, is there an upside to all this?
First of all, I realise this current health crisis continues to affect the lives of millions of people around the world and I have the utmost respect for the health care professionals who are guiding us through these challenging times.
But among the unpredictability of the situation, there are opportunities to be had for the Amazon FBA seller.
Although us sellers down here in Australia might be feeling hard-hit by the pandemic, it’s NOTHING compared with what’s happening in China.
The virus has hit the Chinese economy worse than anywhere else and this has trickled down to their Amazon sellers. This is bad for them… but might be good news for us.
Looking at my experience of selling on Amazon.com, many of my products have – or had – lots of competition from China. Competitors who constantly undercut my prices because they could easily afford to.
But now, as Chinese sellers run out of stock or have other distribution problems arising from the pandemic, many of my items are left with next to no competition. In some categories, I’m the only seller offering certain products meaning my sales have tripled.
Chinese sellers have always had this price advantage over other sellers around the world. Because they can produce goods so cheap they can easily undercut other sellers into making a loss.
Today, with all the disruption to manufacturing in China, we have a chance to turn it into our favour and prosper.
At least for a little while.
Locked down? Then double down on your business
A plus to being in lockdown is all the extra time you can dedicate to your business. Instead of watching another episode of Friends, use the extra time to tweak your listings or research new products… and watch Friends after.
I believe it’s more important than ever to see the bright side in these difficult times. Great entrepreneurship is turning a seemingly negative situation and turning it into a positive one.
I wish you the best of health and luck and can’t wait to see you all after lockdown.
Virtual hugs and kisses.