Posted: 2020-09-23 16:15:45
Amazon Enters Q4 With Restored Prime Selection Levels
From Marketplace Pulse at Marketplace Pulse
Originally published 2020-09-23
rom May to July, a twelve month low of the top Amazon sellers offered Prime shipping for most of their catalog. Prime availability index for the top sellers acts as an indicator for the overall Prime-enabled catalog. The Prime assortment has recovered across all sellers in the U.S. marketplace, not just the top ones. Most sellers have reopened their import supply chains initially disrupted by the pandemic, were able to keep items in stock, and send more inventory in, and Amazon’s fulfillment restrictions for Q4 didn’t have a widespread limiting effect yet.
Fulfillment will be the limiting factor this holiday season, and despite Amazon restocking its warehouses, the issue of delivery capacity remains to be stressed. Brian Olsavsky, Chief Financial Officer at Amazon, said that the company increased the fulfillment network square footage by 15% in 2019 and expects a 50% increase in 2020. The majority of that new capacity is coming online now in late Q3 and into Q4. But USPS, FedEx, UPS, and Amazon’s owned delivery network cannot scale up as fast.
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