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fulfin - financing ecommerce January 17, 2020 3 Minutes
Categories: Ecommerce | Help for sellers
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The liquidity is missing, the production takes longer or the goods are stuck in the 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 occurrence of the out-of-stock event.

For e-commerce businesses that need a flexible financing solution quickly, are we at fulfin are exactly the right partner. We ensure the liquidity supply of online companies and help to provide suitable financing so that our customers can fully concentrate on their growth. Request uncomplicated financing via our appif you would like to receive a free and non-binding offer.

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 and stock levels is therefore necessary - in addition, always keep an eye on sales promotion measures. With seasonal products, it should also be considered that the products will sell more at the beginning of the season. For high-consumption times (before Christmas, Mother's Day/Father's Day, etc.), goods should be ordered well in advance. Amazon Prime Day is a suitable example for this, which we already referred to 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.

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, the seller gets more visibility for the respective product, which subsequently 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 deprive Amazon of the knowledge about the exact stock. It should be noted, however, that the then one-time fixed shipping 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 you are ready to deliver again, a flat sheet can be uploaded in the dashboard with the orders received during the FBM status.

Interested in Amazon financing through fulfin for your project? Then learn more about the Inventory Financing:

In summary:

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

With our list, you should be prepared for the time ahead and keep in mind the most important aspects to consider for your sales strategy in order to avoid ranking losses. However, if other aspects, such as problems with the procurement of sufficient working capital or the optimization of product descriptions or even unsuitable shipping solutions, are the reason for approaching ranking losses, you will find out here with which measures you can 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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