top of page
  • Writer's pictureBrian Cummings

The Top 7 Reasons Why Your Amazon Sales Have Dropped

Updated: 6 days ago

Are you experiencing a decline in your Amazon sales? Experiencing a sales slump can be incredibly stressful, especially when you've been enjoying a positive trend. But don't worry, you're not alone. Many sellers face this issue at some point in their journey. Instead of panicking, take a deep breath and focus on finding the root cause of the decline.


The complexity and challenges of selling on Amazon can contribute to this sales slump. Factors such as poor seller metrics, negative feedback, improper shipping methods, and uncompetitive pricing can all play a role in the decline of your sales. However, there are solutions and strategies that can help you monitor and improve your Amazon sales.


By optimizing your product listings and your keyword research, considering demand, and maintaining proper seller metrics and pricing, you can increase your chances of success on Amazon. Additionally, checking for expired sales or promotions, problems with Amazon sponsored ads, and declined payments for Amazon PPC campaigns can help identify and resolve any issues.

Don't lose hope, with the right tools and strategies, you can turn your sales slump around and get back on track. We get it; boosting your Amazon sales is crucial for your success as a seller. So read on and don't panic - there are a couple of factors that may harm your sales, or it could be due to external factors. Let's go through them one by one.


Curious about how your competition is doing? Check out our Amazon competitor analysis guide!


Ready to optimize your eCommerce fulfillment costs? Check our pricing.


Understanding the Reasons Behind Sales Velocity and Dips


Understanding the reasons behind a decline in sales is crucial for sellers to overcome obstacles and regain momentum in their business. By identifying the root causes, sellers can take proactive steps to address issues such as seasonal slumps and usual fluctuations, reviews, the Buy Box ownership, ad campaigns, inventory mismanagement, and economic fluctuations. In short, as you learn more about Amazon selling, the more empowered you become to navigate the ecosystem to step in front of things that may harm your sales on the Amazon platform.


Reason 1: The Role of Seasonality in Amazon Sales

Seasonal dips in sales are a common occurrence, and understanding how they can impact your business is crucial. Factors such as changing consumer behavior, holidays, and even weather patterns can all contribute to fluctuations in sales. Naturally, your sales are going to spike around Black Friday, but what about sales consistency throughout the year? That's definitely something to strive for, especially if it's a reason for the sales plummet.


Is it possible that your product is seasonal? Many Amazon listed products experience and increase in page sales and traffic during particular seasons in the year - obviously, if you're selling Halloween decor, you'll experience a sales dip during Valentine's. Seasonal products can't expect consistent sales throughout the year. Check this video out to see if your monthly sales could be affected by the season:





Reason 2: Distinction between Normal Sales Fluctuations and Unusual Drops - Monitor Your BSR and Market Share!


Understanding the distinction between normal sales fluctuations and unusual drops is essential for navigating through seasonality in your business. While seasonal dips in sales may be a common occurrence, it's important to identify when the decline in sales is beyond the usual fluctuations.

This can be determined by comparing your current sales numbers to previous sales data during the same period. By recognizing abnormal drops in sales, you can take appropriate actions to address the underlying issues and minimize the impact on your business. Furthermore, sales aren't the only metric you need to look at when your sales drop on Amazon. Consider your Best Seller Rank (BSR) and market share.


BSR is a dynamic metric that alters throughout the day and is influenced by the rate of product sales compared to other items in the same category and sub-category.


If your product outperforms your competitors in sales velocity, this will result in a decrease in your BSR number. Start keeping tabs on your BSR on the product page and compare it with your competitors. If your sales continue but the BSR remains somewhat stable, this simply signifies that the majority of the products in your category also have a steady sales performance.


A declining BSR suggests that your product is selling at a quicker pace than others in your category. Conversely, an increase in BSR indicates that some competitors in that category are outpacing you in sales. However, the most important comparison to make is your BSR against that of your direct competitors. After all, you are not competing against every single one of the million listings in the category.


Keep track of historical BSR charts to better gauge your sales performance so you don't panic when you see sales drop all of a sudden.


Don't forget to keep track of your monthly market share as well. It will inform you where your product ranks in the market for revenue generated. After all, is it possible that your competing sellers on Amazon have also experienced a slump in sales? It could be you're not alone - and that the sales volume is low because of other factors.


Reason 3: The Importance of Reviews on Amazon Sales

Reviews are a powerful tool that can significantly impact the success of your products on Amazon. Let's review the top 4 reasons why customer feedback is so crucial:

  1. Trust and credibility: Positive reviews build trust with potential customers, increasing the likelihood of them making a purchase.

  2. Social proof: Reviews serve as social proof, showing that others have had a positive experience with your product.

  3. Improved search ranking: More reviews can improve your product's visibility in Amazon's search results.

  4. Feedback and insights: Reviews provide valuable feedback and insights that can help you improve your product and customer experience.

Now, if your product arrived at a customer's door defective or faulty, and several customers leave negative reviews, that's a big reason for the sudden drop in sales. It's worth taking a look at the product review section of your listing page to check whether this could be the reason your Amazon sales may have dropped.


N.B.: Is it possible that you're one of the FBA sellers using third-party manufacturers or suppliers selling your product overseas? It's tough to track quality from so far away. (That's why it's important to choose good suppliers, but you already knew that.) Be sure you trust your third-party seller so every product that leaves for your customers' homes is of good quality.


Furthermore, reviews are also affected by pricing. If you're selling a product that many Amazon sellers also sell, and you're priced higher with no evident justification for the higher price point, that's a big reason why your Amazon sales dropped. So, price competitively: set your prices strategically to attract customers and stay ahead of the competition.


Last but not least, make sure you put yourself in front of your ideal customer by using the right keywords. If you're experiencing a sales slump, it's possible your ideal customer isn't the one buying your product. Optimize your title to boost click through rate, and put relevant keywords in your bullet points, back end, and product description. By stepping out in front of your ideal customer, you minimize the chances of a negative review, and maximize the chance of consistent sales throughout the year. Don't use just one keyword research tool for your SEO research, either - the more data, the better.


Consider optimizing those images as well; people are visual, and they buy based on emotion. So, in short:

  1. Alert the algorithm that your product should be paid attention to with the right keywords

  2. Get in front of your ideal customer - it's easier to develop a relationship with your customer and convert them into loyal, repeat customers when you target the right one

  3. Optimize your images, use A+, and include a video to boost human conversion

These tactics are good whether you're a private label seller, wholesaler, or you're into arbitrage. Stay competitive, and those monthly sales should increase.


Reason 4: Understanding and Maintaining Buy Box Ownership - and Hijackers!


Now let's dive into another crucial aspect of maintaining sales on Amazon: understanding and maintaining buy box ownership.


The buy box is the section on a product listing page where customers can directly add an item to their cart. It's highly sought after because it greatly increases the chances of making a sale. So, conversely, losing the buy box can be quite painful!


By understanding how the buy box works and implementing strategies to maintain ownership, you can ensure that your products are prominently featured and boost your sales potential. Try to win the buy box and see if your slow sales stop.


Important note: if your sales are low but you have buy box ownership, it's possible that your listing has been hijacked, and another seller is taking away a big piece of the pie. You'll see a column of "Other Sellers on Amazon" right behind the Buy Box of your private label listing - report this immediately to Amazon, then lower your price so sellers don't jump ship to the lower-priced competitor.


Also, make sure you stay on top of the preventative measures to dissuade potential hijackers. Some tips include:

  • Trademark registration

  • Amazon Brand Registry enrollment

  • Strong brand recall with promotions that appeal to your customer

Avoiding hijackers is the responsibility of every seller - stay on top of these e-pirates and protect your listing from a slump in sales!


Reason 5: Monitoring and Managing Amazon and Google Ad Campaigns


Keep a close eye on the performance of your Amazon and Google ad campaigns to ensure that you're effectively monitoring and managing them for maximum sales potential.


Regularly check your Amazon Sponsored Ads and Google AdWords accounts for any issues or declines in performance.


Set up end dates for your Amazon PPC campaigns to avoid any unexpected declines in sales.

Consider using Google AdWords as a source of traffic and sales to supplement your Amazon sales.


Put it this way - if you're using Amazon PPC, you need to keep an eye on those campaigns, because if a discount ends or a PPC campaign comes to a close, you'll experience a sudden dip in sales. And that's totally normal. However, if you don't have enough money in your linked credit card or bank account to keep your PPC campaigns running, and you're declined for a lack of funds, Amazon will put a stop to your Amazon PPC ads without you knowing, and this could be the reason why your sales go down.


Reason 6: Inventory and Account Management


Ensure you have a robust inventory management system in place to avoid stockouts and effectively manage your Amazon seller account.


Stay on top of your inventory to keep your sales flowing smoothly. When it comes to Prime Day, Black Friday, Easter, Thanksgiving, Christmas, or other high-sales seasons, running out of stock is a deadly sin - capitalize on these sales bouts with an optimized listing, or a fun sales promotion, or a new video (et cetera) to make sure you welcome the higher sales velocity, and make sure you stay in stock - but augment your yearly sales too by paying attention to your inventory throughout the year.


Speaking of yearly sales - if you're running out of stock a lot, you'll be guilty of inventory mismanagement, which may cause your listing to become inactive. A product that hasn't made any sales for some time will definitely experience reduced sales velocity, which will negatively influence its organic search ranking, pushing it further down the list. This creates a vicious cycle that only intensifies the problem of declining sales. Many sellers may panic without knowing this is what's actually happening behind the scenes. It's definitely something to think about.


Also, maintaining a good Inventory Performance Index (IPI) is crucial to prevent sales drops. Maintain a clear overview of your stock and ensure timely replenishment. This will help you meet customer demand and avoid negative reviews due to late shipments or out-of-stock products.


Reason 7: Dealing with Economic Changes and External Factors


There could be situations where your dwindling revenues aren't a result of flawed sales tactics or Amazon market conditions. Instead, large-scale external events and the state of the economy can significantly impact your sales. For instance, the recent pandemic and the subsequent inflation have made customers more particular about their purchasing choices.


This implies that it's now more challenging for sellers to persuade customers easily. Buyers are now focused on obtaining the most value from every dollar they spend.


The pandemic led to a dramatic reduction in consumer spending on luxury goods, and the ensuing inflation has exacerbated the situation.


Similar has happened in Europe, where political unrest has resulted in supply chain challenges. Think about it: at the minimum, customers would complain about a late shipment rate, which leads to a drop in sales. And that's not the fault of the seller at all, but it's something they have to deal with, so they can see about maneuvering around slower sales caused by force majeure.


In essence, if you're marketing products that fall on the pricier end of the scale, you might encounter a drop in sales. In such circumstances, it's crucial to monitor monthly inflation rates and consumer surveys that shed light on recent purchasing patterns.


If your revenues are dwindling because the majority of your products are considered high-end, with substantial price tags, and your Amazon sales strategy for these products has proven ineffective, a shift in approach might be necessary. Consider introducing products that are both affordable and essential. There's a wide range of product categories you could explore for this purpose.


Despite inflation troubles, many products such as cleaning supplies, laundry essentials, and home improvement tools maintain a robust sales record on Amazon.


Monitoring Amazon Sales and Performance


To monitor your Amazon sales and performance, simply check the revenue figures on your Seller Central homepage. Use relevant reports for a complete breakdown of your data. This will give you valuable insights into your sales trends, customer behavior, and overall performance.


By regularly monitoring these metrics, you can identify any fluctuations or issues that may be impacting your sales. Take appropriate actions to improve your performance and drive more sales on Amazon.


Want to go from good to unforgettable? Check out our Amazon Brand Story Guidelines for Sellers!


Dealing with a Sales Slump: A Checklist


If you're experiencing a sales slump on Amazon, it's important to understand the nature and extent of the slump. Start by using a checklist to identify possible reasons for the decline in sales. These reasons may include seasonal dips, pricing issues, or listing hijacking.

Check if any of these hold true for your slower sales:

  • Understand irregular sales declines: Distinguish between usual sales fluctuations and substantial dips.

  • Manage negative reviews: Monitor reviews consistently, and address negative feedback promptly.

  • Monitor the impact of ended promotions: Regularly update and check your promotional activities to avoid sudden sales dips.

  • Evaluate Amazon Sponsored Ads: If sales fall while using PPC ads, check for issues like insufficient funds or the campaign's end.

  • Monitor Google AdWords: Keep an eye on the status of your AdWords campaigns, as account deactivation can impact sales.

  • Recognize the prevalence of sales slumps: Understand that slumps are common and can lead to improved business strategies.

  • Assess inactive and suppressed listings: Review your listings on Seller Central to identify any that are inactive or suppressed.

  • Inspect account health: Check the Account Health page on Seller Central; yellow or red indicators suggest potential issues.

  • Review Buy Box status for each listing: Loss of the Buy Box can lead to reduced sales, so regularly check your ownership status on Seller Central

Shared Experiences and the Importance of Community Among Amazon Sellers


Building a strong community of Amazon sellers is vital for gaining insights, support, and shared experiences that can help navigate the unpredictable nature of the platform and overcome sales challenges.


By connecting with fellow sellers, you can learn from their successes and failures, exchange valuable advice, and find comfort in knowing that you're not alone in facing sales slumps.

Together, you can brainstorm strategies, share resources, and provide encouragement to keep pushing forward and find solutions to your Amazon sales decline.


The best part is, a lot of these Facebook groups don't charge membership fees, so you can try for free. Join a community, network with other sellers, and see how your performance can improve on your Amazon store.


Did you know you can get Amazon reviews within TOS? Checkout our tell-all on the Amazon Vine Program for Sellers 2023.


Frequently Asked Questions


How can I convert everyday customers into reviewers on Amazon?

To convert everyday customers into reviewers on Amazon, you can start by simply asking for reviews. Utilize tools like Salesbacker to help automate this process. Additionally, provide exceptional customer service and follow up with customers to encourage them to leave reviews.


What are some potential reasons for a decline in Amazon sales?

Some potential reasons for a decline in Amazon sales include seasonal fluctuations in demand, uncompetitive pricing, inventory mismanagement, expired sales or promotions, issues with advertising campaigns, and product defects.


How can I monitor my Amazon sales and gather relevant data?

To monitor your Amazon sales and gather relevant data, you can check revenue figures on the Seller Central homepage and utilize relevant reports for a comprehensive breakdown of your sales data.


What are some strategies for improving my Amazon sales and preventing sales dips?

To improve your Amazon sales and prevent dips, focus on competitive pricing, optimized product listings, proper shipping methods, and attention to seller metrics.


Conclusion

In conclusion, if you've been wondering why your Amazon FBA sales are down, it's important to consider various factors. These factors include poor seller metrics, negative feedback, shipping issues, and uncompetitive pricing. However, there are solutions available to help you overcome these challenges.


By optimizing your product listings, monitoring competitor prices, managing inventory effectively, and utilizing tools that help you track customer reviews and supply chain management, you can improve your sales on Amazon. Remember to regularly check for any issues with promotions, sponsored ads, and payments.


With the right strategies, you can turn your sales slump around and find success on Amazon.



189 views0 comments

Comentarios


Do You Need FBA Prep, Storage, or Returns Management?

With over 10 years of experience in FBA Prep and Logistics, warehouses all over the west coast, and our own custom software solutions. We're confident we can help accelerate your FBA Success. We'd love to talk with you, just give us a call at +1-844-644-0088 or click the link to our contact form. 

bottom of page