As a seller of Amazon, we sometimes encounter the problems of product shortage and product ranking decline due to sales exceeding expectations. So how can we deal with it to minimize losses?
I Solutions to the risk of out of stock
First of all, we need to predict the sales volume of products in advance according to the sales data of recent months, upcoming holidays, sales volume of competitive products and other factors.
If the actual sales volume is found to be significantly higher than the estimate after delivery, if it is left unchecked, there will certainly be out of stock; Then we can control the risk by raising the price or reducing the advertising investment.
Some small partners may ask, why should we reduce shipments and sales?
In fact, it's very simple. Suppose you only have 100 stocks. If you issue 10 orders every day, you can only persist for 10 days; But if you make five orders a day, you can last 20 days. After all, selling less is better than out of stock. Once out of stock, your listing will be greatly affected.
Similarly, the price increase can also reduce the order quantity and improve the profit margin. Therefore, it can be used as the first response to the risk of out of stock.
II Handling method after the goods have been out of stock
There are usually two situations for products that are out of stock:
The first case is that all the descendants of the product are sold out. At this time, we can use FBM to sell ourselves, or use express delivery to shorten the arrival time of products. In short, the shorter the time of stock out, the smaller the impact on listing. In addition, there is no other way to slow down the rate of ranking decline.
The second case is that some SKUs of the product are out of stock. At this time, we must immediately adjust the advertising, because even if some SKUs are out of stock, the advertising opened will still consume advertising fees, and if consumers click in, they will still face the problem of out of stock. Traffic and no conversion will also reduce the advertising weight and product ranking.
The specific operation logic is: adjust the advertisement in time to avoid introducing a large amount of traffic as much as possible, but you can't close the advertiser directly. Because advertising sovereignty has an accumulation mechanism, if it is closed directly, the weight accumulated before will be lost (when the advertiser opens again after the products arrive in the warehouse, you will find that the sales volume cannot reach the previous level).
Usually, the budget can be reduced to $1 to maintain the advertising sovereignty, but it can not introduce a large amount of traffic. At the same time, we also need to replenish the inventory as soon as possible to solve the problem from the root cause.
Note that although the above methods are all solutions to the problem of out of stock, as long as they are out of stock, they cannot have no impact at all. For example, if you are out of stock frequently, Amazon may think there is a problem in supply capacity, so reduce your traffic.