Coronavirus COVID-19 | Amazon FBA Business Impact & Product Sourcing
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Coronavirus COVID-19 | Amazon FBA Business Impact & Product Sourcing


What is going on YouTube? I was not planning to film this video but
I’ve been getting so many questions about the Coronavirus and how it could affect your
Amazon FBA business. And instead of answering everybody individually,
I decided to just film this video. Now, I did not even plan for this video. I literally made a post on Amazon FBA Winners
Facebook group asking people, do they want to hear about the impacts the Coronavirus
can have with your Amazon FBA business. That is why we are here. Now, I want to get something very, very, very
clear. I’ve been seeing this question floating around
in online communities, I just want to clear this up. I started watching other people on YouTube
talking about the Coronavirus and how it can affect their Amazon FBA business and I started
noticing a lot of garbage out there. That’s why I decided to do this video. Now, the very first thing I want to clear
up is that viruses do not live on products. They do not live on products. If you think a customer is not going to buy
your Amazon product that is sourced from China, I think 90% of us source our products from
China, and a lot of newer sellers are panicking, they’re thinking, “oh my gosh, the customers
thinks that they are going to get the virus just because my product is made in China.” That is absolutely not true. I encourage you to do some Google research
and watch some YouTube videos on how the viruses get transferred. Basically, if you are not shipping a human
being to your customer, they cannot get the virus. It doesn’t matter if your product is sourced
from China. Viruses do not live on products. I hope I got that out of the way. Now depending on what type of product that
you are selling, you may be experiencing slower sales right now. Obviously everybody knows that you should
not be traveling during this time, you should not be booking flights, you may have canceled
your travel plans. I know for me, I had to cancel my flight to
California, I was going to meet up Helium 10 and everyone there but I had to cancel
that and I also canceled the Prosper Show in Vegas. And I also canceled my AirBnB. Everybody should not be traveling right now. But if you are selling products that are related
to traveling, maybe you are selling a neck pillow. You know those neck pillows that you travellers
use on the airplane? If you are selling anything related to travel,
you are going to be experiencing really slow sales. And it’s very unfortunate that that is the
case right now but these are things that we cannot control, right? However, if you selling a product that is
a household product, you may be experiencing a huge increase in sales. Maybe you are selling some type of kitchen
product, household product, disinfectants, some sort of napkin or wipes or baby products
or kids products because a lot of people are working from home right now. You may be experiencing crazy sales going
through the roof. I’ve exchanged notes from experienced sellers
and some of them are running out of stock. Now, if you are running out of stock, I want
to be very clear because, like I said, there was someone that made a comment on YouTube
when they were doing a video and their suggestion was to raise the price if you are to run out
of stock. Do not do that. Do not raise the price for your products just
because you want to slow down inventory. You don’t want to do that because that really
hurts the algorithm because if you do end up running out of stock, and you raise your
product super high, it’s going to be extremely hard for you to rank back to where you were. If you are on page 1, and you raised your
price by $10 just to slow down inventory, it’s a very bad idea. Do not raise your price. Just sell out organically and get inventory
back into the Amazon warehouse organically. Everything should be organic. As you guys already know, I do not believe
in any funny black hat tricks or tactics, I do not teach that. I do not encourage that for my followers so
I really hope that you are doing things that are organic. You really don’t have to do anything funny. Now, if you are sourcing from China, a lot
of the workers are actually back to work. I know we had a big hiccup because after Chinese
New Year, some suppliers got hit with the whole virus happening in China and then some
factories were shut down. A lot of them, I would say 80% of them, are
back at work. Now they may be backed up. They may be backed up with production because
after the Chinese New Year, especially for big sellers, we have to fulfill our inventory,
right? We’ve waiting so long during the break for
Chinese New Year so inventory may be backed up. And shipping time has been slower than usual. However, a lot of people, like I said, are
still working. You can still communicate with your suppliers
and if you have a freight forwarder, I strongly advise you to communicate with them as well. I know I use Forest Shipping and I also have
a few back up freight forwarders, just in case something happens. And they are all in business as per usual. However, like I said, shipping times and production
times may be slower. To cover your butt, you should be ordering
inventory in a larger amount. Don’t go breaking your bank and buying products
that you cannot afford. However, you should be stocking up in inventory
because there is a slower time in production and a slower time for shipping. I honestly think, right now, is the best time
to start an online business. It’s not even just Amazon FBA. All online businesses, as you guys are aware
of, operate at the comfort of your very own home, right? If you are doing Shopify, maybe you are doing
dropshipping, maybe you have a coaching business, I am sure a lot of you guys who watch me have
other online businesses, this is the best time to start an online business. Because people are staying at home. A lot of people are afraid of the virus. Now, here’s what I think and I don’t want
to offend anybody but a lot of people have been asking me, “why are you still going out
Tamara? There’s the virus. You should be staying home. Just trap yourself at home.” And I personally think I stay home a lot already
because I do have an online business obviously. And this is how I see things. A lot of people are panicking right now. A lot of people are freaking out especially
if your product is a travel product or maybe it’s an outdoor product and nobody is leaving
their houses right now. Right now, is the perfect time to start your
Amazon FBA business. Right now because everybody is at home. A lot of people are doing shopping online. A lot of people are staying home browsing
the internet. You can really work from the comfort of your
own home and even if we did not have this whole Coronavirus thing happening, I really
think an online business is the absolute best type of business that you can do for yourself. Do not give up on your business because of
this Coronavirus. It’s just a hiccup. Obviously, going back to what I was saying,
how I view things is, I’ve always been the type of person where I do not really allow
these things to bother me because I find it very bad for my mental well being. One thing that I heard from Grant Cardone
was to not watch a lot of the news. I obviously, when I am scrolling on Facebook,
I hear a lot about the news, I do hear a lot about the virus. But I do not intentionally go out there to
consume my brain with the media because the media is there to brainwash you for a reason. I actually don’t watch the news that much. And I’ve been the type of person where it’s
like, “if something were to happen to me then something happens to me”, right? I try to live in the present moment. I try to be that person where I don’t let
things that I cannot control affect me and my business. When everybody is freaking out about the virus,
I am just continuing business as per usual because these are things that we cannot control. It’s sort of like you walking on the street,
you’re walking on the street one day and then you may get hit by a car. Thank God, I hope you don’t. That’s not what I meant. But you get the idea. Anything can happen to you. I could be drinking this green smoothie right
here and it could be poisonous and I could die. I won’t. Knock on wood. Knock on wood. I won’t. But you get the idea. There’s so many things that we, as humans,
cannot control. And what I am trying to say is not let that
get into your brain. You cannot prevent these things. You cannot prevent the virus from happening
to you. I know that sounds harsh but it’s true. I am sure you guys have people living with
you in your home or maybe you live alone, I don’t know, right? Even if you live alone, maybe you’re taking
the elevator up to your apartment, whatever it is, and someone may be carrying the virus. What I am saying is these are things that
you cannot control and you should not let this get to your brain. If you are someone that lets the media control
every aspect of your life, you my friend are going to be in a ton of trouble. Now, I hope everybody does stay safe and I
hope you guys are too affected by the virus and the products that you are selling. Like I said, this is just temporary. And if you are selling a type of product like
a travel product or an outdoor product, sales will be slow right now. And what you should be doing is actually pulling
back on your Pay Per Click advertising. It’s not like a lot of people are going to
buy your item anyway, right? I am sure a lot of people are not looking
to buy an outdoor lawnmower right now, for example. Nobody wants to go outside. I hope everybody does stay same. I almost forgot to mention, everybody, you
should be having a back up supplier. Now, I’ve always had a backup supplier. For example, if something were to go down
with my current supplier, I make sure to contact my backup supplier for inventory. And if you have a third backup, that’s even
better. But most of the time, I say 80% of the time,
my main supplier handles everything and I think there was 1 or 2 times where she was
on holiday or something and we couldn’t really connect so I went to my backup supplier to
get inventory. My backup supplier charges 15 cents more per
unit. Not going to argue about it, not sure why,
and I am not going to cry over 15 cents a unit. It’s stupid, right? But what I am trying to say is you need to
have a backup supplier even if this whole Coronavirus thing was not working because
if something were to go wrong with your supplier, maybe they are going to get shut down because
of the Coronavirus, very small chance. But by the way, you just want to prepare for
the worst, right? You should have a backup supplier. In order to have a backup supplier, you want
to order samples from them as well to see how far off the quality is from your main
supplier. Now, most of the time, I’ve been selling for
a few years now, most of the time, the quality is pretty much the same. And I think that’s because, for me, I’ve been
sourcing in the same area in China and my suppliers are trading companies and they are
absolutely amazing. They all get their supplies from the bigger
factories. I think that’s why the quality of my products
have been very similar. I would say it’s exactly the same. But that’s not the case for everybody, right? If you find a trading company or a manufacturer
outside of the city where you originally source, the quality may be different. When you are looking for a backup supplier,
just compare the quality and you also want to ship the supplier your product, the final
product so they know exactly how to customize the product to your liking. After you have that down, everything should
be good. Everything should be good and you should not
have to worry about if your factory is very slow in production or they are now working
from home because of the Coronavirus. You just have to prepare for these things
regardless, right? I think one of the most important things to
consider in life and in business is to always prepare for the worst. I am not saying that bad things are going
to happen to you. I really wish everybody will live a long and
happy life, a healthy life. However, we have to be prepared. You have to make sure you have money in the
bank in case something happens. You have to make sure that you are eating
healthy, you are healthy, you are getting in exercise, you are hanging around with good
people who feed positivity into your brain. You have to make sure you don’t let the media
brainwash you such as the Coronavirus where everybody is freaking out. I think it’s good to be cautious but in life
and in business, you really have to prepare for the worst. I really don’t want to see people thinking
that their business is going to collapse now because of the virus. It’s not, it’s only temporary and you just
have to keep on going, right? Business should not stop. Everything should be carried on as per usual
because these are things we cannot control. We cannot prevent. So do not get discouraged. My heart goes out to you because I know, some
of my own students, they are selling travel type of products right now and they’re freaking
out a little and I really do understand how you feel. I’ve been in your shoes. Even when I did not have an outdoor kind of
product. I’ve been in your shoes where sales are so
slow and you’re like, “oh my gosh, oh my gosh..” But you have to constantly be working on your
business and preparing for the worst, just in case something happens. And preparing yourself personally as well. I really hope you guys, good luck to your
businesses, I am sure they will be fine. But take note of everything that I said in
this video. Really prepare yourself because you know,
you just never know right? And you need those backup suppliers, you need
those backup freight forwarders and try to have good relationships with everybody in
your life. If you want to stay home, stay home. I am not staying home. I am ready to go out for lunch with my girlfriends. But I hope this video has helped you guys
today. If you guys have any questions, just drop
me a comment below. I will love to answer your questions and concerns. Give this video a huge thumbs up. And of course, I’ll be seeing you guys in
my next video.

23 Comments

  • Maria sunshine

    It is a well known fact that the corona virus does live on any surface for 48 hrs. How do you think it transfer so fast ? Please be kind I am not bashing

  • Nofx Meditation

    Did you receive an email from Amazon about fba not creating shipments starting today through april5?
    Please make a video on that topic

  • Never Gives up

    Good video Tam. Everything shall pass, everything is temporary. Panicking will not solve anything but will cause more chaos.

  • Bootleg Garage

    Hi great video. ppl here where i live are going crazy cause of this virus. I was working 24 hrs a week now i'm working about 70 hrs a week. lol keep up the great work : )

  • D F

    Great video, thank you so much for reassuring me because before this video I was thinking to put off the idea of starting my amazon business!
    My product is for outdoor so I will have to search for another one… do you think sales data of softwares are reliable now that a lot of sellers are running out of stock?

  • Tracy H.

    What you said makes perfect sense but don't you think that people who are locking in their homes and maybe trying to save money because they can't work probably won't buy a lot of things online/ on amazon, except for
    basic necessities such as sanitizers, masks, hygiene products etc?

  • JM M

    Great video Tamara as usual.
    Here in France, we're in total containment at home since noon today.

    I really hope everything will be ok very soon. In a positive side we have plenty of time to improve our AMZ business knowledges.

  • Jasmine L

    I am totally agreed with you, I stay from the news and focus on what I need. Mainly focus that you can control and every situation have a positive outcome. lift your chin up and continue and focus on positive 🙂

  • Palmer Joseph

    majority of the world is losing their mind! the common flu kills more people at any given time but the media doesn't talk about it so no one cares. get a hold of yourselves guys! this is not the end of the world. calm down and stop panicking. this is what the media does to everyone… smh

  • Safi Ullah Khan

    Hi Tamara Tee, is this info true?
    Shipment creation is temporarily disabled!

    Amazon just announced that they had implemented actions to prioritize household staples, medical supplies, and other high-demand products coming into their Fulfillment Centers.

    1. Baby Products
    2. Health & Household
    3. Beauty & Personal Care (including personal care appliances)
    4. Grocery
    5. Industrial & Scientific
    6. Pet Supplies

    This means that you will not be able to create shipments for products that are not in these categories!

    –Did you create the shipment before March 17? It will be received.
    –Can you change the category so your products will be accepted? No, your account will be suspended.
    –This will be in effect March 17, 2020, through April 5, 2020, and so if you are not selling any of the above products, you will not be able to restock.
    –Is FBM still available? Yes!
    –Your IPI (Inventory Performance Index) score will not be affected.

  • S

    Unfortunately, it's been found that the coronavirus can live on surfaces anywhere from 4 hrs up to 9 days (depending on the surface). Now, obviously 9 days is a stretch and it's very unlikely this virus or any virus can survive on a surface for that long. I wouldn't be worried about stuff coming from China. It takes longer than 4hrs-9 days for a shipment to arrive, anyway. By then, all viruses would've died.

    The problem however is that at times like these people tend to spend less on non-essentials. Also, many people aren't even working now (with the closure of a lot of business as a preventative measure), which would mean less buying, and less sales for a lot of amazon sellers. So yeah, there's going to be a slow down for the average seller whether on amazon or in a brick and mortar store.

    These are some scary times. YES. I know the media -and politicians and people in charge – are making things worse than they really are. Spreading fear is what they do best. Call me a "conspiracy theorist" if you want. News agencies try to outdo each other in making their headlines scarier and more dramatic than the others'. That's how they try to grab more audience and higher ratings. But still, I wouldn't say the current situation shouldn't cause some level of fear and worry. This isn't something the average person is used to. It's not every day that a virus causes so many deaths and so many infections in such a short period of time and travels from one continent to another so quickly as if it appears from thin air in the new place. I'd say the speed the virus is spreading is what scaring most people, not the fatality rate since the virus isn't really that deadly, but then most people really lose their minds once they hear something can cause death even if just @ .01%. People can be easily spooked, just like sheep.

    Sure, regular flu kills 1000's (10,000 in the US alone) of people every year but we're just worried this new flu might become deadlier. This seems like an "engineered" virus that doesn't happen in nature. The other scary thing is that a vaccine is still 1-2 years away from being made available to the public, although sometimes I think they actually already have one.

    On a lighter note, 2 good byproducts of the current situation : much lower gas prices and much less traffic congestion here in Vancouver. Boy ! Where's everybody ? The streets are semi empty and driving isn't the torture it usually is here. lol.

    I just hope this will blow over and will come to an end soon and before summer is here. I don't want my summer to be ruined.

  • Danny Thomas

    We shouldn't raise prices because it will hurt the ranking algorithm. What if we launched in December and our first shipment is now running low and factories are 1 to 2 months behind production. Is it ok to turn off PPC? I was paying a ton in PPC just to improve rank and I made great improvements but now I'm going to run out of product. Should I continue to run PPC and improve rank or just turn off PPC and keep my current rank?

  • Grace0229

    should we start product research right now/anytime regardless the virus situation? or should we on hold until the virus is gone??

  • ji zhang

    Tamara, we have enjoyed your videos for a while, thanks. Although the purpose of your current video is to comfort your audience from pandemic, but I would give a comment for your current video: please be scientifically encouraging. Will enjoy your videos again. Thanks.

  • Olivier Havard

    I'm leaving in France right now and the virus is real!! killing many people every day here, be prepared in Vancouver guy's!!!stay at your home best advice i can give!!!

  • S

    I really hope this is a "hiccup". It seems like things are getting a little worse by the day. Yes I do believe there's a lot of brainwashing and scare tactics being used by the media and also politicians…but the current situation is unprecedented and most people have never experienced something like this before. I hope those up there aren't cooking something up with this corona shit.

    I hope this crisis comes to an end and soon. I want to go back to my shitty life because that life was still a nice life compared to how things are right now.

  • jalabi99

    I found a product that would be perfect to sell during this time and wrote to the main US supplier/manufacturer of the product a week and a half ago to get some inventory that I can begin to sell. I haven't heard a word from them! So annoying. Hopefully I can find another US supplier of the same product or else I will be forced to get a Chinese supplier instead.

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