[CORONAVIRUS] Should Sellers PANIC?
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[CORONAVIRUS] Should Sellers PANIC?


Today we are talking about coronavirus
it is taking the world by storm and you as an Amazon seller it’s gonna blow your
business up either in a good way or a bad way so let’s talk a little bit about
how you can start to position yourself correctly to make some money off of this
chaos and grow your business there’s been a lot of speculation on coronavirus
and the situation is changing pretty rapidly depending on who you talk to
this is the end of the world this is the apocalypse or you should be much more
concerned about the common flu and you got nothing to worry about so somewhere
between there is the answer and that’s all worth talking about in another video
this video is about your business and from a business perspective we don’t
really care about any of that from a business perspective we need to know
what is actually happening on the ground in China what are the facts and how is
that going to affect current and future production abilities shipping abilities
our ability to get our inventory out of China so let’s take a quick look at
what’s happening on the ground so far I’ll give you a quick timeline and then
I’ll also let you know how much should we actually care as Amazon and
e-commerce sellers on New Year’s Eve China alerted the World Health
Organization that they had an unknown virus outbreak and they started shutting
down local seafood markets inside of Wuhan China from a business perspective
not much happened until the end of January towards the end of January we
saw China actually take the unprecedented step of quarantine in
multiple cities and just putting the whole city under lockdown and this is
when Amazon sellers started to become a little bit concerned by the end of
January we saw Airlines canceling flights thousands of flights refunding
anyone who had a flight booked to China we saw the Chinese government extended
the holiday just then the Chinese New Year by over seven days in some areas
all of these were different efforts to keep people out of close contact and
this was happening on top of the quarantine of you know 50 million plus
people in many different cities at this point so at this point we started to see
shipments and productions take significant hits any business who gets
anything from China is feeling the pressure now since then all the official
numbers are getting much better we’ve really improved significantly but all of
the leaked videos coming out of China from their social media networks things
are not looking good over there there seems to be a big discrepancy right now
between the official story and what’s actually coming out of China
I’ll link some videos below that’ll show you
hospitals just completely overloaded the Chinese military pulling citizens out of
their homes for forced quarantines or just welding them inside of their homes
so they can’t leave and they’re quarantined in there it looks like some
pretty dark times and I just can’t believe that this isn’t gonna have any
effect on production or supply chains so the question becomes what happens next
the truth is nobody knows for sure if you believe the official numbers coming
out of China then the worst is already behind us and the virus will probably
eliminated in the next few months now I personally think there’s a lot of
uncertainty in those official numbers and in business uncertainty translates
to risk so let’s talk about some of the different ways you can position yourself
for this new uncertainty this new risk and I’ll show you how this could
actually turn into a big opportunity for a lot of sellers first of all let’s talk
about how this is actually gonna affect Amazon and e-commerce sellers supply
chains are going to be disrupted there’s a lot of people saying this is gonna
happen production and shipping have already been significantly delayed and
disrupted in China and there’s growing backlog this is gonna have a significant
impact on a lot of different sellers out there so you’ve got to keep an eye on
your inventory levels this one’s gonna be a little shocking but there’s a lot
of Amazon sellers right now who are in touch with their factories they’re
talking to their suppliers and their suppliers are telling them we’re gonna
be back online in a week we’re gonna ship out your inventory in two three
weeks all of these factories are just trusting the government the truth of the
matter is a lot of these factories will never ship out another item again you
have a lot of factories that were not really financially secure or stable
before that can’t take shutting down for a month or two so you’re gonna have a
lot of factories that think that they’re gonna be back online in a week or two
that are never shipping out another piece of inventory again scary stuff
now if you don’t do much business in China you’re gonna think this sounds
crazy because the government told me that the factories are gonna be back
online yesterday right well let’s just look at some of these factories Foshan
was supposed to be back online yesterday all of those factories are closed now
either until February 20th or March 1st I’ve seen both dates Guangdong factories
in Guangdong China we’re supposed to come back online yesterday they’re now
closed until February 24th panyu where a lot of the fabrics and textiles come
from was supposed to be open already is now closed until March first and this
is one of the big problems with this outbreak from a business perspective
everybody’s just kind of trusting the government so when you talk to your
supplier a lot of the times they’re just working off the information that they
have and a lot of them thought that they were gonna be open yesterday but weren’t
when factories do reopen there’s going to be a massive backlog that has piled
up and needs to be processed through and if you’re not a big seller if you’re not
a huge seller you’re gonna be put to the back of that queue on top of that 90% of
all passenger airline travel to China throughout the end of March is gone
90% of all of the airline travel what does that mean that means much higher
short-term air freight rates for you about half of all of the air freight
shipments actually happened on passenger Airlines so if 90% of the passenger
airline flights are gone that’s a huge amount of air freight capacity that’s
gone too so once this all comes back online there is going to be a huge
demand for shipping trucking every type of shipping service is going to see an
increased demand and we’re probably gonna see a shortage in air freight
capacity as well as trucking capacity if things keep on going the way that
they’re going right now Amazon could really quickly turn into a war of
attrition you’re gonna see a lot of sellers go out of stock and never get
inventory in again being able to consistently stay in stock with quality
inventory is gonna become a huge advantage in the coming months let’s
talk about what you should do about this you can position yourself now to take
full advantage of the coming supply chain crises by simply going deep and
stocking up on some of your best-selling inventory don’t overbuy on products that
don’t have an established sales history already but make sure you don’t run out
of stock on your bread and butter products even if China shuts down for
two or three months so consider getting in touch with your suppliers now and
saying hey I want to up the quantity on my upcoming order and just make sure you
can get that inventory out of China and stock up a little bit that goes
hand-in-hand with hyper communication with your supplier it’s always great to
have a good relationship but especially in a situation like now when this
backlog of production and shipping when it finally gets processed and all of
China is back online you want to be early in that line you
want high priority I also recommend most be
start working to find a backup supply or outside of China there’s a lot of
different countries that you can source from and they’re just getting better and
better to source from if you want you know additional content more videos on
that just leave a comment below give me a like something like that let me know
you liked this video and maybe one of the next videos will talk about how to
get that production out of China and into some better countries you get
quicker lead time better quality certain categories and certain keywords really
it makes sense to go to countries outside of China even without
coronavirus but you need to immediately start thinking about what’s my back up
here if China just goes under now is that gonna happen probably not but it’s
definitely the biggest risk in my lifetime since I’ve been running Amazon
businesses so I just want to be safe here I want to have a backup supplier
and I want to stock up on my best-selling inventory cuz I think 2 or
3 months from now if this thing keeps on going this turns into a war of attrition
and the people who can keep quality inventory in stocks the longest end up
reaping all of the rewards from Amazon and last thing don’t fly to China do not
go to China until all of the travel restrictions have been removed the last
thing you want is to be quarantined and stranded in a foreign country this is
the first time we’ve been doing our sourcing mastermind trip out at the
Canton Fair since 2014 it’s like the ninth time we’ve done it this is the
first year we actually had to cancel the trip refund to everybody because I don’t
know if we can get back out of China if we go there so don’t go to China until
all the travel restrictions are lifted there’s really no upside at this point
to going over there deepen that relationship with your supplier online
they’re gonna completely understand at this point and guys we’re not just
greedy capitalist so if this video does help you make more money in the next few
months with your Amazon business consider taking a small chunk of that
and donating it to a charity that’s associated with coronavirus preferably
something that bypasses the Chinese government and just goes straight to the
people but there really is a humanitarian crisis going on in China
right now it is tragic to see as someone who’s been to China so often I really
hope they get through it quickly but this video talks about again everything
you need to do from a business perspective to position yourself
correctly do keep in mind after you’re done with that make sure you pay a
little bit attention to the humanitarian crisis over there too because they might
need your help so hopefully you found this video valuable and hopefully you’re
able to position yourself correctly for what maybe to come down the pipe
from coronavirus and if you think I’m crazy or if you think I’m not crazy
enough go ahead leave a comments I’ll be hanging out in there for the next few
days and if you’re from China I’d really like to hear from you in the comments
let us know what’s going on in your local area your city your province are
people being allowed back to work yet what’s going on there what’s it look
like on the ground in China because us in America it’s pretty tough to see
what’s going on there so let us know in the comments we’ll be hanging out in
there hopefully that helps guys

About Ralph Robinson

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8 thoughts on “[CORONAVIRUS] Should Sellers PANIC?

  1. I have relatives and friends living the WH, I speak to them everyday. Although the mood is depressing because they all heard of friends who died from this epidemic, but they have not seen in their own eyes or in their neighborhoods, any of the chaos described by the social medias or foreign networks. They have been staying in their homes since the total shut down and only went out to buy food ( grocery stores still open and price is slightly higher, but still plenty out there). From the videos they sent to me, everyone is still living in their quiet and interesting life. I don’t deny worse situations else where that they might not have seen, however, from what I can see and hear in their videos, nothing amazes me how resilient and strong Chinese people are! And the incredible unity they have as a country! People can laugh about communist China all you want or chastise them for human right with the mandatory lock down, but if this happened in America, in the so-called democratic country, with the amount of guns we allow people to have and the “ free spirits” , can you imagine the total anarchy?

    In regards to business, most of the business are maintained via “ding ding “ conferencing system. Outside in the total shut down cities. For instance, in Shanghai, if you have to go to work, as long as you tell your boss you were outside of the city, not staying in your home during the first 14-day shut down, you are asked to go back home and complete the 14 day self quarantine.

    Everyone, I meant everybody, in this country with 1.4 billion people, STAY IN and are willing to work with the central government’s orders on mandatory or temporary or partial shut down, can you imagine any other countries doing such thing with this size of population?

  2. Folks, One thing Trump is right – too many fake news out there, regardless it’s CNN or Fox – go to NATHAN Rich’s YouTube Chanel, if you want to know more about coronavirus in China, he’s an American and living in China right now. Only one person I know who respects the real fact and actually makes sense.

  3. Yes, it is really sad what's happening. Hope this situation ends soon. And yes please we need more information about how to source from other countries. Thanks for the video.

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