Amazon to Resume Shipping of 'Non-Essential' Goods By Third-Party Sellers

Amazon had restricted shipments of non-essential goods by third-party sellers, but plans to ease some of those restrictions soon.
Author:
Publish date:

Amazon plans to allow more third-party shipments of nonessential items soon, according to a report. 

In response to surging demand, Amazon decided last month to prioritize shipments of essential goods such as paper products, healthcare and pantry items to millions of homebound customers. It will begin allowing more nonessential shipments by third party  sellers later this week, a company spokesperson told the WSJ on Monday. 

Sources told the paper that Amazon will allow shipments unrelated to essential needs in the coming days, but will limit how much product third-party sellers can ship in order to preserve space in their warehouses for essential goods. 

Shares of Amazon  (AMZN) - Get Report were up 4.8% on Monday to $2,140.98.

Sales from third party sellers make up about 58% of Amazon's e-commerce sales, and the changes had disrupted many sellers who rely heavily on Amazon's platform to make sales.  

Amazon is quickly ramping up hiring across its fulfillment network -- in addition to a number of other measures to manage the demand created by the coronavirus pandemic. 

The company is hiring 75,000 new workers in its facilities, in addition to a hiring spree of 100,000 workers announced weeks ago, to meet customer demand. Widespread stay-at-home orders, and subsequent demand for deliveries, have generated long waits for delivery slots of food and other goods for many Amazon customers. 

It's also paused Amazon Shipping, its branded delivery service that competes with FedEx FDX and UPS United Parcel Service to deliver packages as it focuses on its own delivery efforts. 

Amazon is also looking to postpone its annual Prime Day sales event, which is normally held in July, until at least August according to Reuters. 

Amazon is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AMZN? Learn more now.