E-Commerce & COVID-19: Amazon & eBay’s battle with Coronavirus

As COVID-19 (Coronavirus) continues to create uncertainty and disruption across the world, Amazon and eBay, among other marketplaces face their own battle with the virus. The companies have issued warnings to caution sellers to not overprice medical products such as hand sanitisers and face masks. Amazon has already banned over a million products from its marketplace based on their inaccurate and unproven claims to help battle with the virus.  

As the demand for medical supplies increases, sellers must be cautious about the ways in which they market their products. Even top sellers and established brands are not exempt, as some were discovered to be selling products such as packs of N95 masks for $128, over three times more than the market average rate.  

So, what should sellers do? 

An easy way to avoid breaching marketplace rules is to investigate the listing policies within each marketplace. For instance, avoiding the use of specific language such as naming the virus or using words like “epidemic” within descriptions will keep product listings safe. Selling products that are marketed as unapproved or unregistered medical devices is strictly prohibited from Amazon. 

Pricing is another point of concern for marketplaces. Amazon and eBay have informed users that their stores may be removed if found to not be compliant with fair pricing policies. Stores that are insistent on selling medical products must be familiar with local policy to avoid losing seller privileges.   

Proceeding with caution when using the automated Amazon pricing feature is a common mistake that some merchants may overlook. Based on the boost in demand and the scarcity of supply, it’s paramount to track stock counts for each listing and disable Amazon’s tool for competitive pricing as it may raise prices disproportionately without seller knowledge. It is suggested that if a fair price cannot be maintained that the products should not be listed.  

Aside from the legal obligation, sellers must consider their ethical responsibility to not exploit unaware shoppers during times of uncertainty as this can have detrimental effects on customer satisfaction and trust in the long-term. 

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