Drop in Sales on Amazon - Listing Performance or Economy Issue?

The video addresses a common issue Amazon sellers are facing: a significant drop in revenue and impressions. Several sellers have reported drastic declines in sales, some even comparing current sales to the lowest points of the COVID-19 lockdown. These declines have sparked concerns about whether this is a product-related problem or a larger economic or market issue.

Key points raised include:

• Many sellers report sales drops of 30% to 50%, with some attributing this to increased competition, particularly from new competitors selling at lower prices.
• Other sellers point to the overall economic downturn, retail closures, and lower consumer spending as contributing factors.
• One specific case highlighted a jewelry seller who has seen their income drop twentyfold, struggling to maintain business despite consistent product offerings.

To address these concerns, the video discusses the importance of tracking product and search performance metrics. Sellers are encouraged to monitor sales rank, conversion rate, unique visitors, and overall search volume for their product categories. This data helps differentiate between product-specific issues and broader market trends. For example, if a product's conversion rate remains stable but overall search volume drops, it likely indicates a market downturn rather than a problem with the product itself.

The video also emphasizes the impact of running out of stock on a product's sales rank and search performance. When a product goes out of stock, its sales rank drops, and it can take time to regain momentum once back in stock. To mitigate these effects, it is crucial to avoid stockouts whenever possible.

By understanding and analyzing these metrics, sellers can better determine if they are facing individual product challenges or larger market shifts, allowing them to adjust their strategies accordingly.

To dive deeper into these strategies and learn how to track your metrics effectively, check out the video below.