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Amazon (AMZN) Issues FBA Fee Waiver to Stoke Seller Interest

Amazon AMZN is leaving no stone unturned to promote seller interest during amid the coronavirus-induced crisis.

This is evident from the company’s latest move of waiving the storage fees for the last two weeks of March for sellers.

In a bid to cater to overflowing orders on account of panic shopping with the limited and constant delivery capacity, Amazon had to put a halt to orders for non-essential commodities.

This, in turn, does not bode well for sellers of luxurious and non-essential items.

Notably, the latest Fulfilment by Amazon (FBA) fee waiver is likely to reduce the cost burden of such sellers whose sales have been impacted by the company’s decision to stop delivering non-essential items.

Moreover, the move is expected to help the company in sustaining sellers’ momentum during this pandemic situation.

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

 

Amazon’s Seller-Centric Approach

The latest move reflects Amazon’s deepening focus toward the betterment of sellers on its online retail platform.

Apart from the FBA fee waiver, the company has recently put a temporary halt on loan repayment.

Notably, the company’s Amazon Lending program, which has provided financing worth millions to several merchants on its platform, does not require borrowers to pay back their loans until Apr 30.

Moreover, the amount of payments will remain same and interests will not get accrued.

We believe Amazon’s strengthening seller-centric approach is expected to help the company retain them on its platform, which is crucial.

Wrapping Up

The rapid spread of the coronavirus across the globe is taking a toll on everyone. So far, the pandemic has infected at least 170,000 people and claimed more than 6,500 lives worldwide.

Amazon is constantly taking measures to reduce the risk of spreading the coronavirus. Further, its strong endeavors toward serving the interests both customers and merchants remain noteworthy.

These are likely instill investor optimism in the stock amid this challenging situation. Moreover, a strong seller base and aggressive retail strategies are likely to continue aiding the performance of Amazon online-retail business.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail-wholesale sector include Stamps.com STMP, eBay EBAY and Alibaba BABA. While Stamps.com sports a Zacks Rank #1 (Strong Buy), eBay and Alibaba carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Stamps.com, eBay and Alibaba is pegged 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.

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