Amazon stocks drop more than 10% as coronavirus fallout worsens

Amazon’s stock has dropped over 10 per cent in the past fortnight as thousands of third-party sellers struggle with stock shortages.

The coronavirus’ fallout on businesses around the world is continuing to worsen while countries around the world scramble to contain its spread.

Mass quarantines at the outbreak’s epicentre in China have caused many factories responsible for producing goods for thousands of Amazon sellers to remain shut for extended periods.

Amazon’s stock has dropped 12.54 per cent since February 20, mirroring the Dow Jones’ and S&P 500’s 12 and 11 per cent dive in industrial averages over the same period, marking the most dramatic fallout since the last financial crisis.

The online giant has been offering advice to affected sellers, encouraging them to put their companies on “vacation status” to prevent their listing being downgraded in its search results by its algorithms.

READ MORE: 1 million items removed from Amazon for false coronavirus claims

It has also sent out surveys to sellers in Europe and China to build a picture of where the affected factories are located, if there are manufacturing delays and why, if they have expected production delays in the coming weeks and how many of its sellers rely on them.

Furthermore, Amazon has started asking employees to “defer nonessential travel” inside the US and hold off planning group or team meeting that require travel until at least the end of April.

Confirmed cases across the globe are now nudging 90,000 and the number of countries, including the UK, confirming contractions within their own borders is rising.

Amazon is not the only big tech company to be affected by the virus, with both Apple and Microsoft warning investors it they could both miss expectations this quarter.

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