Amazon Sales Declining? How to Troubleshoot Falling Sales & Grow Them Instead

Your Amazon sales are dropping, and you’re not sure why. You’ve tried different things, but nothing seems to be working. It’s a frustrating situation, especially when you’re relying on Amazon for a significant portion of your revenue.

Falling sales are a common problem for Amazon sellers, but the good news is that they’re often fixable. In this article, we’ll cover the most common reasons for declining sales on Amazon and provide actionable steps you can take to turn things around. Let’s get started.

1. Diagnose the Real Problem: Is It Actually Sales?

It sounds counterintuitive, but sometimes a perceived “sales” problem is actually something else entirely. Before you start tweaking campaigns, you need to determine if your sales decline is real or just a symptom of something else.

Here’s what I mean.

Traffic vs. Conversion Rate

Are you getting less traffic to your product pages, or are people visiting but not buying? These require different solutions.

• Less Traffic: Investigate potential issues such as lost keyword rankings, suppressed listings, or algorithm changes.
• Low Conversion Rate: Focus on optimizing your product listings, improving your pricing, or enhancing your product images.

Most sellers don’t realize this: A drop in traffic requires a different strategy than a drop in conversion rate. Let me show you how to check.

How to Check Your Traffic and Conversion Rate

Head over to Seller Central and pull up your business reports. Look at session percentage and unit session percentage. Are these trending down?

If your session percentage is down, you have a traffic problem. If your unit session percentage is down, that’s your conversion rate.

Link opportunity: Amazon Seller Central Guide

2. Amazon Algorithm Changes: Are You Being Penalized?

Amazon’s algorithm is constantly evolving, and changes can significantly impact your product rankings and sales. It’s essential to stay up-to-date on these changes and adapt your strategies accordingly.

Keyword Ranking Fluctuations

Have you noticed a sudden drop in your keyword rankings? This could be a sign that the algorithm has shifted, and your listings are no longer as relevant as they once were.

How to Fix It: Re-optimize your listings with updated keywords, focus on high-converting search terms, and ensure your product is relevant to the search queries.

Listing Suppression

Amazon may suppress your listings if they violate the platform’s policies or if certain information is missing. A suppressed listing won’t show up in search results.

How to Fix It: Regularly check your Seller Central account for listing suppression notifications and address any issues promptly. Ensure your product information is accurate, complete, and compliant with Amazon’s guidelines.

Example: We recently had a client whose sales dropped 20% overnight. Turns out, their main image was flagged for violating Amazon’s image guidelines. Once they updated the image, sales returned to normal within 48 hours.

3. Competitor Activity: Are They Eating Your Lunch?

The Amazon marketplace is highly competitive, and your competitors are constantly vying for the same customers. It’s crucial to monitor their activity and adjust your strategies to stay ahead.

New Entrants and Aggressive Pricing

Are new competitors entering your niche with lower prices? This can quickly erode your market share.

How to Fix It: Evaluate your pricing strategy and consider adjusting your prices to remain competitive. Offer discounts, promotions, or bundles to attract customers.

Improved Product Listings and Advertising

Have your competitors improved their product listings or launched more effective advertising campaigns?

How to Fix It: Analyze your competitor’s listings and ad campaigns to identify areas for improvement. Optimize your product titles, descriptions, and images. Refine your keyword targeting and bid strategies.

Example: We tracked a competitor who launched a new product with a 20% lower price and aggressively bid on our client’s target keywords. Our client’s sales dropped 15% in two weeks. We responded by matching the competitor’s price and optimizing ad copy. Sales returned to normal within a month.

Link opportunity: Competitor Analysis Tools for Amazon Sellers

4. Seasonality and Trends: Are You Prepared for Fluctuations?

Sales on Amazon often fluctuate based on seasonality and trends. Understanding these patterns can help you anticipate changes and adjust your strategies accordingly.

Seasonal Products and Peak Seasons

Are your products seasonal? If so, expect sales to decline during the off-season.

How to Fix It: Plan ahead for peak seasons and adjust your inventory levels, pricing, and advertising accordingly. Consider diversifying your product line to offer year-round options.

Trending Products and Fad Cycles

Are your products tied to current trends or fads? These trends can be short-lived, leading to rapid sales declines.

How to Fix It: Monitor trends and adjust your product offerings accordingly. Consider introducing new products or variations that align with current trends.

Example: A client selling fidget spinners saw a 70% sales decline within three months as the fad died down. They successfully pivoted by introducing a new line of stress-relief toys aligned with emerging trends.

5. Advertising Performance: Are Your Campaigns Underperforming?

Your Amazon advertising campaigns play a crucial role in driving sales. If your campaigns are underperforming, it can lead to a significant drop in revenue.

High ACOS and Low Conversion Rates

Are you spending more on advertising without seeing a corresponding increase in sales? This could be a sign of high ACOS (Advertising Cost of Sale) and low conversion rates.

How to Fix It: Analyze your keyword targeting, bid strategies, and ad copy. Optimize your product listings to improve conversion rates.

Reduced Impressions and Click-Through Rates

Are your ads getting fewer impressions and click-through rates? This could be due to increased competition, irrelevant keywords, or poor ad placement.

How to Fix It: Refine your keyword targeting, improve your ad copy, and consider adjusting your bid strategies to improve visibility.

Example: We audited a client’s ad campaigns and found that 40% of their spend was going to irrelevant keywords with high ACOS. By negating those keywords and focusing on high-converting terms, we reduced their ACOS by 25% and increased sales by 18% in 60 days.

Link opportunity: Amazon PPC Bid Management Strategies

Conclusion

Falling sales on Amazon can be alarming, but by systematically diagnosing the problem and implementing targeted solutions, you can turn things around. Remember to analyze your traffic and conversion rates, stay updated on algorithm changes, monitor your competitors, prepare for seasonality, and optimize your advertising campaigns. By focusing on these key areas, you can regain momentum and grow your sales on Amazon. AdLabs is here to help.

This article is based on Episode 117 of That Amazon Ads Podcast. Subscribe for weekly Amazon PPC strategies.