Measures against ranking losses when an “out-of-stock event” is approaching

Liquidity is lacking, production takes longer or the goods hang in the customs There are countless reasons why an out-of-stock event can occur. Since Amazon penalizes missing stock with a severe loss in ranking and all the ranking work would then have been in vain, it is essential to prevent the out-of-stock event from occurring.

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Correct timing of the measure

As the headline clearly describes, measures must be taken when an “out-of-stock event” is approaching and not when it has already occurred. This requires some planning, especially for products that often have up to 3 months delivery time. Close monitoring of sales and stock levels is therefore necessary – in addition, always keep an eye on sales promotion measures. In the case of seasonal products, it should also be remembered that products are sold more at the beginning of the season. For high-consumption periods (before Christmas, Mother’s Day/Father’s Day, etc.), goods should be ordered well in advance. Amazon Prime Day is a suitable example of this, which we have already discussed in this article.

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, this measure can also be used to determine whether customers would generally be willing to buy the product at a higher price.

However, when considering the amount of the price, it should be kept in mind that this will also worsen the conversion rate and click rate. A small ranking loss must therefore be taken into account with this method.

Disable Pay Per Click

By running Amazon Pay-Per-Click campaigns, the seller gets more visibility for the respective product, which subsequently leads to increasing sales figures.

However, in the case of an approaching 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

Basically, the FBA status(Fulfillment by Amazon) as a shipping status is advantageous, because the Prime option, which is only possible with this shipping type, makes the sales figures go up. However, in the case of low inventory with an out-of-stock event looming, this is disadvantageous from two perspectives:

1) The prime function pushed sales further up and 2) in FBA status, Amazon is always informed about the exact number of pieces still available. However, if you change to FBM status (fulfillment at merchant) at short notice, you take away Amazon’s knowledge of the exact inventory level. It should be noted, however, that the then one-time fixed dispatch period must be adhered to in order not to risk any further ranking losses.

Without the Prime function, fewer products are sold (slow down). However, at the same time should not be driven completely to 0, so that the ranking does not drop too much.

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

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In summary:

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

With our listing, you should be prepared for the upcoming time ahead and keep in mind the most important aspects to consider for your sales strategy to avoid ranking losses. However, if other aspects, such as problems in obtaining sufficient working capital or optimizing product descriptions, or even unsuitable shipping solutions, are the reason for approaching ranking losses, you can learn more about them here which measures you can take to counteract such situations.

With our tips at your side, nothing should go wrong now! We wish you only the best rankings and successful business!

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