Amazon AMZN spares no effort to promote the interest of sellers during the coronavirus crisis.
This is clear from the company’s latest decision to cut storage fees for sellers for the last two weeks of March.
In order to respond to overflowing orders due to panic with limited and constant delivery capacity, Amazon had to suspend orders for non-essential products.
In return, this does not bode well for sellers of luxury and non-essential items.
Note that the latest Fulfillment by Amazon (FBA) fee waiver will likely lower the cost burden on those sellers whose sales have been affected by the company’s decision to stop delivering non-essential items.
In addition, this decision should help the company maintain the momentum of vendors during this pandemic.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon Seller Centered Approach
The latest decision reflects Amazon’s growing focus on improving sellers on its online retail platform.
In addition to the exemption from FBA fees, the company recently put a temporary stop on loan repayments.
Notably, the company’s Amazon Lending program, which has provided financing worth millions to several merchants on its platform, does not require borrowers to repay their loans until April 30.
In addition, the amount of payments will remain the same and interest will not be accrued.
We believe that strengthening Amazon’s seller-centric approach should help the company keep them on its platform, which is crucial.
The rapid spread of coronavirus around the world is weighing on everyone. So far, the pandemic has infected at least 170,000 people and killed more than 6,500 worldwide.
Amazon is constantly taking steps to reduce the risk of spreading the coronavirus. In addition, his sustained efforts to serve the interests of customers and merchants remain remarkable.
These are likely to instill optimism from investors in the action in this difficult situation. In addition, a solid seller base and aggressive retail strategies are expected to continue to drive the performance of Amazon’s online business.
Rank Zacks and Actions to Consider
Amazon currently has a Zacks Rank # 3 (Hold).
Among the highest ranked stocks in the wholesale sector are Stamps.com STMP, eBay EBAY and Alibaba BABA. While Stamps.com has a Zacks # 1 rank (strong buy), eBay and Alibaba have a Zacks # 2 rank (buy). You can see the full list of today’s Zacks # 1 Rank actions here.
The long-term profit growth rate for Stamps.com, eBay and Alibaba is set at 15%, 11.56% and 25.6%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.