Amazon Merchants Spooked by Coronavirus Fallout Curtail Ad Spending
Small sellers are buying fewer ads on the site to reduce demand in the event of supply disruptions. They could jack up prices, too.
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Chuck Gregorich, who sells China-made patio furniture on Amazon.com Inc., expects to lose as much as $2 million in sales this year due to factory closings and other coronavirus-related slowdowns. So he’s cutting his ad spending on Amazon and thinking about raising prices to avoid running out of inventory. The sudden shift in sales tactics by merchants like Gregorich threatens Amazon’s fastest-growing and profitable revenue source.
“If we’re going to run out, why not run out at full price,” he says. “We have to make sure the sales we have are as profitable as they can be."