How to handle running out of stock while selling on Amazon FBA - EP128

The Amazon FBA Private Labeler Show

Welcome To Episode #128 of the Amazon FBA Private Label Show Podcast!

In this episode I share a quick story about running out of stock while selling on Amazon FBA and how to handle it if it happens to you.

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How To Handle Running out of Stock While Selling on Amazon FBA - EP128

If you've been selling online long enough then you are more than likely gonna run out of stock while selling on Amazon FBA. Let's be honest it sucks. Thinking about all the missed sales and profit is no fun and also thinking about your product dropping off in the rankings will drive most sellers crazy.

What should you do though if you are going to run out of stock on an item you are selling? Should raise the price to slow down sales a little bit? Should you lower the price to spike sales and conversions? And once you run out of stock should you close your listing out as many in the community said you should do?

These are all great questions and I have certainly shared my opinions on them in the past. I have also ran out of stock while selling on Amazon FBA more times than I would like to admit. Recently I ran out of stock on a good selling product and was without inventory for over 2 months. I never closed the listing or anything like that. Once I got back in stock the product went back to it's normal selling levels within a week. This is with just running PPC on the product. Nothing else. This really changed my perception about running out of stock while selling on Amazon. My thinking is that if you have a great selling product then you can easily bounce right back with minimal effort.

My Results:

• Out of stock for over 2 months
• Started getting sales right away with PPC
• Moved to the bottom of page 2 for the main keywords within 2 days
• Moved to the bottom of page 1 for the main keywords within 5 days
• Moved to the middle of page one for the main keywords within 7 days
• Everything back to normal selling levels within a week

My Opinion:

I have ran out of stock many different times and have tried lots of different things each time to experiment. My current opinion is that you should just run out of stock naturally. Then once you get back in stock you can just run your PPC campaigns to start getting sales. If you have a good product and the market hasn't really changed then you should bounce back quickly. If you want to do things like closing out your listing as many sellers do then go ahead. I don't necessarily think that it matter either way. If you want to run some extra traffic by giving a coupon out to your e-mail list or Many Chat audience then do that. I just don't think it's necessary. Simply running Amazon PPC should be effective enough to get re-ranked and selling again.

Reasons I have ran out of stock before:

• My shipment was seized by customs for 2-3 weeks
• My factory had machines break down for weeks which delayed my order
• Severe weather and blizzards delayed shipments

Tips to help you maintain stock at all times:

• Place larger orders to receive a lower cost per unit
• Send in inventory to Amazon FBA to last you 1.5 - 2 months
• Send in extra inventory to a nearby warehouse that can drip inventory to Amazon FBA as needed
• Know your factories holiday schedule each month so you can plan orders accordingly
• Always have capital to place an immediate second inventory order on new products to maintain momentum

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