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fulfin - financing ecommerce January 17, 2020 2 Minutes
Categories: Ecommerce | Help for sellers
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Liquidity is missing, production takes longer or the goods are stuck in customs - there are countless reasons why an "out-of-stock event" can occur. Since Amazon punishes missing stock with a severe loss in the ranking and all the ranking work would then have been in vain, it is essential to prevent the out-of-stock event from occurring.

  • Correct timing of the measure

As the title already clearly describes, it is important to take measures when an "out-of-stock event" is approaching and not when it has already occurred. This requires a certain amount of planning, especially for products that often have a delivery time of up to 3 months. Close monitoring of sales as well as stock levels is therefore necessary - always keeping an eye on sales-promoting measures (as these also increase sales). In the case of seasonal products, it should also be borne in mind that products will sell more at the start of the season. For periods of high consumption (before Christmas, Mother's Day/Father's Day, etc.), goods should be ordered well in advance.

  • Higher price

If, despite the measures taken, an out-of-stock event is imminent, the first step should be a price increase. Experience has shown that this measure reliably curbs sales.

As a side effect, these measures can also be used to determine whether customers would generally be willing to buy the product at a higher price.

With the question of the amount of the price, however, it should be considered that this also worsens the conversion rate and click rate. A small ranking loss should therefore be taken into account with this method.

  • Disable Pay Per Click

By running Amazon Pay-Per-Click campaigns, you get more visibility for your product, which in turn leads to increased sales.

However, in the event of an impending lack of stock, no additional sales should be generated through Amazon PPC. It is therefore recommended to deactivate Amazon PPC immediately.

  • Change from FBA to FBM

In principle, the FBA status (Fulfillment by Amazon) as the shipping status is advantageous, as the Prime option, which is only possible with this shipping type, causes sales figures to rise. In the case of a low stock level with an approaching out-of-stock event, however, this is disadvantageous from two points of view:

1) The Prime function pushes sales further upwards and 2) in FBA status, Amazon is always informed about the exact number of items still available. However, if you switch to FBM status (Fulfillment at Merchant) at short notice, you take away Amazon's knowledge of the exact inventory. It should be noted, however, that the then one-time fixed shipping time must be adhered to in order not to risk any further ranking losses.

Without the prime feature, you will sell less products (slow down) at the same time but not go all the way to 0, so your ranking shouldn't drop too much.

Once you are ready to deliver again, a flat sheet can be uploaded in the dashboard with the orders received during the FBM status.

In summary:

An out-of-stock event can have severe consequences for the Amazon ranking. However, with the right measures, this can be counteracted and such a situation can be avoided.

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