Amazon, the world's largest online retailer, is not immune to the outcomes of the hastily spreading coronavirus disease. The e-commerce giant, according to the New York Times, expressed its concern that it may run out of inventory on a lot of its China-made merchandise.
The contagious disease, officially called COVID-19, has closed factories and slowed the production of almost everything from Apple iPhone parts to drug ingredients in China used by the United States. Pharmaceutical makers.
Amazon, with its reliance on Chinese manufacturing, examined how a giant retailer grapples with the fallout from the coronavirus and what may lie ahead for other stores. With Apple cutting its sales expectations this week and airlines canceling flights, dozens of companies have already indicated that the virus has already taken a toll on them.
ALSO READ: Amazon Takes Down Products That Claim to Kill Coronavirus
Amazon orders more Chinese-made items shipped to the U.S.
Amazon has a tendency to stock fewer goods in warehouses than other outlets do, relying on a so-known as "lean inventory." The said business model would make things more prone to coronavirus-related delivery issues. Even those goods which might be assembled elsewhere, however, depend upon parts that come from China might be at risk.
According to the Times' report, the warehouse is now ordering more Chinese-made items shipped to the United States. Amazon, however, did haven't replied to CBS MoneyWatch's request for comment as of writing.
An Amazon spokeswoman told the Times that the e-commerce giant is working closely with the suppliers out of an abundance of caution to secure additional inventory to ensure it keeps its choice for customers.
"We are monitoring developments associated with the coronavirus and taking appropriate steps as needed," the corporation later added, according to the report.
ALSO READ: [WARNING] Buying Items Online May Transfer Coronavirus From China? Amazon Takes Immediate Action
Amazon imports six to eight weeks worth of products from China
Amazon has ordered six to eight weeks worth of some products made in China contrary to its ordinary two-to three-week stash, the Times reported. The report cited experts who work with manufacturers that sell through the platform.
Those same providers are also in impact stockpiling inventory by using reducing lower back on advertising and marketing and advertising efforts at the Amazon platform, efforts that presumably lower demand for the goods.
Amazon is likewise worried it will no longer have enough inventory for its mid-summer time Prime Day event - and is speaking with third-birthday party sellers to decide how the coronavirus ought to interrupt their deliver chains.
ALSO READ: FedEx To Stop Ground Delivery Services To Amazon
The Times' report added Amazon emailed a beauty logo on Wednesday, February 19, asking if it expected to have its top five products in adequate stock this summer season.
"Amazon is attempting to establish a stock hazard for your business shifting forward and mainly for Prime Day," the Times stated of the email's content. "We admire your feedback by TODAY."
The deadly virus continues to spread and has infected more than 79,000 people as of writing. More than 77,000 of the cases are in China.
