Why Are My Amazon Sales Down? 9 Reasons and How to Fix Them

There are over 9.7 million sellers registered on Amazon but only 1.9 million of them are active and getting Amazon sales.

So what has happened to the rest of the 7.8 million sellers?

There can be multiple reasons why those sellers are not getting Amazon sales on the marketplaces at the moment. And one of them is that their sales went down and they couldn’t fix it.

Why am I not getting sales, what to do if sales go down, what causes sales decline, if all such questions are popping up in your mind, you’re at the right place.

Here, we will discuss in detail all the reasons why Amazon sales go down and how you can fix them.

So, whether you’re already facing this issue and want to fix it or have preemptive preparation, continue reading this blog. 

TL/DR: Why Your Amazon Sales Are Down

Your Amazon sales can be down for any of these reasons: 

• Seasonal decline in demand
• Dwindling purchase power and rising inflation
• Uncompetitive pricing
• Listing hijacking
• Inventory mismanagement
• Late Shipping
• Discount and PPC campaigns Ended
• Product defects and shortcomings 
• Falling organic rank for relevant keywords

How Do I Monitor Amazon Sales?

Usually, the revenue figures (Today’s Sale, Total Balance, etc) from your Seller Central homepage can tell you if you are facing an Amazon sales dip. However, it won’t draw a complete picture. You need to know a complete breakdown of previous data to understand how this dip has come about and what SKUs are the most affected. 

Having this nuanced understanding is only possible by looking into the relevant reports. For that, you have to expand the Reports drop-down menu from your Seller Central Homepage and click Business Reports.

On the left side, you can find the sales data dashboard.

From here you can fetch data for any time period and for every individual ASIN. Also, you can see the sales data in the form of graphs to have a better understanding of sales trends with respect to time.

A Checklist to Go Through When Your Amazon Sales Are Down

Whenever you see a drastic drop in sales, you need to carry out these three checks. Completing this checklist will make it easier for you to identify the root cause and address it.

Check Inactive and Suppressed Listings

If any of your listings have been inactive or suppressed, you will notice a visible decline in sales. So, whenever you come across a sales dip, expand the Inventory drop-down menu from your Seller Central homepage and open the Manage Inventory section.

Scroll down and choose the Inactive and Search Suppressed filters to see if you have any such listings. 

Check Account Health

The poor account health of an Amazon seller is another telltale sign of reduced sales volume. Open the Account Health page from the Performance drop-down menu of your Seller Central homepage. 

If the pointer shows yellow (at risk) or red (unhealthy), it means you are in trouble. In such a case a dip in sales is more likely to be followed by the deactivation or suspension of your seller account. 

Check Buy Box

Losing the Buy Box of a certain listing also means a reduction in sales. Therefore, check all your listings and see their Buy Box status. If you have lost the Buy Box for one or more of them, it may explain to you “Why am I not getting any sales on Amazon?”

9 Potential Reasons Why Your Amazon Sales Are Down and How to Fix Them

Many times you don’t get the signs discussed above when your sales are down. All your listings are active with no search suppression, and your account health remains in the green ‘healthy’ zone but you are still losing out on your sales— so what to do in such scenarios? 

If you couldn’t pin down why your Amazon sales are down, you need to consider these 9 factors. Here we will walk you through those issues as well as their solutions.

You are Facing a Seasonal Slump

It is almost impossible for any seller to keep its sales at the same level every month. If you will see yearly data of any ASIN, you will see the ups and downs. In short, it is common for any seller to see sales slumps for any of their products at any given time of the year. 

Now let’s try to understand why those slumps usually come about. 

All Months Are Not Equal for Amazon FBA 

No matter how strong your brand and product are, you may face an Amazon sales dip in some months of the year. For instance, you may already know that the last quarter of the year is the most happening time for sellers. From Black Friday to Cyber Monday and Halloween to Christmas sales, all those bumper sales seasons come in the last three months of the year.

Then, there are good outings for sellers in summer boasted by school holidays and Prime Day sales. Therefore, you may face a sales dip in February-March with shoppers going into a slumber after a long sales streak starting from the end of October and extending to mid of January. Similarly, you may struggle to achieve your sales target in the slow period of August-September. 

Your Products Have a Seasonal Element

Besides the marketplace’s sales season, the seasonality of your product can also cause a sales dip, depending on the time of the year. For instance, you may not see the required sales volume for swimsuits, beach umbrellas, sunglasses, camping gear, gardening equipment, and bird feeders in the last months of the year.

Similarly, skiing equipment, leather apparel, and tire chains won’t have bumper sales during the middle months of the year. Moreover, if products make for good gifts (e.g. vases, snack boxes, beauty kits, etc), they are more likely to get better sales around holidays and festivities and may not be sold like a hot cake for the rest of the year.

The Solution

As an FBA seller, you can’t do much about how sales bouts come on Amazon marketplaces. However, you can always capitalize on them. Make sure you are on top of your game with inventory, product listings, and pricing during Prime Day, Black Friday, Easter, Halloween, Christmas sales, etc.

Similarly, if your products are seasonal and their sales dip during the off-season are hurting your revenue goals, try to add “perennial products” to your seller portfolio. For instance, there are some product categories like Home and kitchen, Beauty and Personal Care, fast fashion items, and pet supplies that see steady sales throughout the year.  

Roaring Inflation and Dwindling Buying Power

There might be a case where your sales strategy or Amazon marketplaces are not to be blamed for your declining revenue. Sometimes, it’s bigger external events and an economic outlook that can affect your sales. For instance, the pandemic and recent inflation have made customers finicky about their shopping preferences. 

It means it is not easy for sellers to easily sway customers anymore. Shoppers want to ensure they get a bang for every buck they spend. 

There is a massive cutback by consumers on luxury goods during the pandemic. Then, post-pandemic inflation has only made things worse.

In short, if you’re selling products that are on the higher side of the price point spectrum, you may face a slump in sales. In such a scenario, you need to keep tabs on monthly inflation rates and customer surveys that highlight recent buying trends and tendencies.  

If your sales are down because most of your products can be categorized as luxurious with hefty price tags and your Amazon sales strategy for such products hasn’t worked out, you may need to pivot. Try to launch products with low price points and high usability i.e. essential products. There are many product categories that you can explore in this regard. 

From cleaning items to laundry supplies and kitchen to home improvement and hardware, many products continue to have solid sales history on Amazon despite inflation woes. 

Your Pricing Is Not Competitive

For many customers, it all comes to the price tag at the end of the day. In the e-commerce space, the price has also gained a lot of importance because it is easier to compare prices of a similar product offered by multiple sellers. 

Therefore, even if you are pricey just by some cents or a buck in a competitive space such as Amazon, you may lose customers to competitors. Suppose your private label brand offers a door draft stopper at $19.99. And your competitor has the same item listed at, say, $17.50 (with an almost similar rating and reviews aggregate). There are high chances that this price difference will pay off in your competitor’s favor. 

In the Wholesale and Arbitrage space, the competition is more cut-throat since multiple sellers are vying to win the Buy Box of the same listing. Here, even a difference of some cents may lead to you losing the Buy Box and getting your sales impacted.

Conclusion

Regularly conduct a competitive analysis of similar products in your niche. Ensure that your pricing is in line with the market and, if possible, offer better value for money. Utilize tools like Jungle Scout or Helium 10 to stay updated on your competitors’ pricing strategies and adjust your prices accordingly.

Addressing these potential reasons for a decline in Amazon sales requires a strategic and proactive approach. By continually monitoring your listings, staying abreast of market trends, and adjusting your strategies accordingly, you can navigate the challenges of the dynamic e-commerce landscape. Adaptability, informed decision-making, and a customer-centric focus are key elements in sustaining and growing your Amazon sales over the long term. Visit our services page or contact us to get any service. Also, visit the careers page for new opportunities. You can find more information like this here.