Retailers including Amazon to limit supplements amid COVID-19 demand
20 Mar 2020 --- It may become more difficult for consumers to receive nutritional products, such as supplements, due to a shift in Amazon’s policy. The mail-order giant is temporarily prioritizing household staples, medical supplies and other high-demand products coming into its fulfillment centers. The company states that this will enable a quicker receival, restock and deliverance of essential items to consumers. However, smaller nutritional companies note that this will severely impact their businesses. Meanwhile, UK-based health food retailer Holland & Barrett is implementing consumer purchase limits in a bid to ensure there is enough to go around.
“Uplift Food’s core business for our Daily Uplifter psychobiotic supplement powder is through Amazon, with at least 80 percent of our current sales coming from this channel. As we are going into production for our new gut health functional snack range of Gut Happy Cookies next week, we had intended to send them to Amazon immediately. We now will have to redirect this to launch solely on our direct website and plan out our launch strategy as information unfolds around retail,” Kara Landau, CEO and Head Dietitian at Uplift Food, tells NutritionInsight.
Amazon’s new policy will be in effect until April 5 in the US and Europe. Products already on their way to the fulfillment centers will still be accepted. The company will also continue to ship non-essential items to consumers for as long as the items are in stock.
Vendors and sellers will be informed once regular operations are resumed, and Amazon notes that this does not impact products being sent directly to customers. The move is a result of increased online shopping leading to household staples and medical supplies being out of stock. An Amazon spokesperson tells NutritionInsight that this is due to people self-isolating. They did not comment on exactly which products will still be allowed into its fulfillment centers.
Joe Welstead, Co-Founder and CEO of UK-based Motion Nutrition, notes that his company currently has about 15 to 20 percent of its revenue come through Amazon. “It’s an important channel in our goal to provide the best convenience to our customers. As a shopper, you will likely get better care and attention shopping from our website, but if you are an Amazon Prime subscriber and are accustomed to shopping that way, then that works for us. Aside from our website and Amazon, we also sell via mainstream retailers.”
However, Motion Nutrition does not currently foresee any losses. “We have been able to stock up our Fulfilment-by-Amazon warehouses sufficiently to cover six to eight weeks of demand on our key lines. If Amazon sticks to its current schedule, which may be delayed, we will be fine.”
Landau explains that although Uplift Food had set up its warehousing to be within a third-party logistics network, its consumers will now be sent to its direct website, where Uplift Foods will process the orders itself.
“Although there is much uncertainty and we have to make decisions on the fly, entrepreneurs and young brands are in a unique position of being used to being in the mindset of being agile and creative. I hope that the sincerity of many of the young wellness-focused brands will be felt by those around us. Together we can all support each other to not only make it through but to flourish after this difficult time that is being experienced throughout the globe,” she adds.
Holland & Barrett is limiting immunity lines to two units per customer.Keeping businesses open
Meanwhile, Welstead notes that the main risks to his company as a result of COVID-19 are with upstream suppliers where there is a risk of factories closing, and downstream clients who may need to close shops. Over in the US, the Natural Products Association (NPA) has been calling for health food stores to remain open as retailers are increasingly forced to shutter.
Meanwhile, UK-based Holland & Barrett – which sells Motion Nutrition products – has recently placed a limit on certain foods and immunity lines to two units per customer. The company says that this is to ensure fairness to customers and is based on the feedback of the availability of certain products.
The store is also taking measures to ensure the health of customers and its staff. Contactless card payments in-store are encouraged, and a one-hour shopping window for the elderly and vulnerable is being introduced.
Stockpiling has been a major effect of COVID-19 as people seek to spend the minimum amount of time outside. NutritionInsight previously reported on how this behavior is heavily frowned upon by nutritionists, who warn that many are hoarding processed, unhealthy foods or products that may reach their expiration date soon and pose yet another risk to consumers’ health. Experts also flag that stockpiling foods may lead to hurdles in the supply chain and food shortages that may impact vulnerable demographics.
Edited by Katherine Durrell
