Last year came down very hard on businesses due to the global economic slowdown which impacted millions of jobs and closure of several organizations. When the new year began, corporations were hopeful of a steady recovery. But we’re just 61 days in 2020, and the novel Coronavirus outbreak in China has crippled the entire economic system.
Last year, on December 1, 2019, the world’s first case of Coronavirus was reported in Wuhan, China. The novel virus spread so fast since then causing the death toll to reach beyond 3,000. The World Health Organization has called this a Public Health Emergency of International Concern, the highest level of risk.
Businesses in China have shut shops, closed manufacturing facilities, and global corporations that have units in China asked their employees to either take unpaid leave or work remotely. The virus has caused the world’s biggest work from home experiment. The virus has now spread outside China and WHO claims that there are more reported cases of the virus outside China than inside.
Companies in China in an attempt to limit social contact to slow the spread of the virus have asked their millions of employees in affected areas to currently work from home. Teachers are also conducting their classes digitally for weeks from their homes. The virus has infected the business ecosystem so badly that none of the organizations are feeling safe. For the eCommerce giant Amazon, the virus has caused some serious damage.
Recently, Amazon said that two of its employees in Milan, Italy have contracted the virus and are under quarantine. The company also said that it is unaware of any U.S employee who might have contracted the virus. Amazon has assured support to the affected employees. Amazon has also banned all non-essential travel, within the United States and beyond. The company also confirmed that it is moving some recruiting interviews to video rather than in person.
But the battle is not just limited to protecting, its employees, Amazon is also getting severe blows to its business operations due to the virus. With sellers selling fake healing products on its website to reduced expectations from Prime Day. Although the company’s key revenue driver is still five months away, Amazon is already taking steps to avoid supply-chain disruptions in China.
According to the New York Times, Amazon recently sent emails to third-party merchants indicating it’s concerned about inventory for the two-day sales extravaganza in mid-July. Much of what Amazon and its partners sell on the platform is made in China. As per the newspaper, with the production of consumer goods like phones, clothing, and automobiles hampered, Amazon has been making larger and more frequent buys. Meanwhile, suppliers are also pulling back on advertisements and promotions so they don’t run out of items too quickly. The report also mentioned that brands have pulled back on their ads on the website by 25%-50%, as well as stopped promotions they had planned. Other sellers are contemplating whether to raise prices to prevent running out of stock. But increasing prices have become a problem for the company.
The e-commerce giant has recently warned its seller against price gouging face masks, a highly in-demand product and an essential preventive measure for coronavirus. It is being reported in the media that some sellers are jacking up prices by three to four times the original price. As the virus continues to expand across the globe, the company demanded marketplace sellers abide by its Fair Pricing Policy. The Fair Pricing Policy is a company rule set to protect against practices that can harm customer trust. The policy dictates that sellers don’t put a price on products which is exponentially higher than the recent prices.
Another problem for Amazon is fake products being sold on the website marked as a “cure for the virus” or “free from the virus”. Amazon recently added a CDC notice to searches related to coronavirus and protective measures for it. Amazon searches for “coronavirus,” “COVID-19,” “n95 mask” and other coronavirus-related content now display a notice directing users to the Centers for Disease Control and Prevention. Amazon has also advised its seller to not put any fake cure claiming products on the website. Recently Amazon sent emails to third-party sellers that said it would take down listings claiming to be a treatment, cure or remedy for the coronavirus. Among the products it removed were listings for a surgical face mask and a spray disinfectant, though the sellers were able to get their listings reinstated after they removed the unapproved medical claims. Amazon has also pulled more than 1mn products from its itinerary claiming that the products could either cure or help prevent the spread of coronavirus. The move comes during the same week that Facebook said it would ban advertisements on its platform for products purporting to cure or curtail the spread of the virus.
However, media reports also pointed out that some people are selling books on Amazon claiming Satan or biological warfare caused the coronavirus. Amazon has defended its stands on keeping the books on the digital shelves saying that it offers customers a variety of viewpoints. However, many believe that in times of fear misinformation spreads faster than ever, and such books can mislead people causing greater problems for the authority and health organizations trying to contain the virus.
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