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Why did my sales drop on Amazon?

A question you might ask yourself frequently. No need to be worried, here are the probable reasons and measures to tackle this situation

1.  Not getting enough impressions - It’s the most probable reason. You might lose the impressions because of many factors - new competitors, market fluctuations, etc. Go to the advertising console and check if the algorithm is bidding enough (in the range of bids suggested by Amazon).

Now, the best way to resolve this is to increase the bids, you can do it using the following methods -

I. Increase the Target ACOS/Bids(in the case of the Force Product Visibility campaign).

II. Set a minimum daily spend.

Please go through this article to differentiate between the above two options.

2.  Keyword mismatch - There can be cases the keywords are not serving enough. You can check the targeting in the advertising console and conclude that the algorithm is not bidding (or bidding low) on the best keywords or products. Sometimes, this is the reason when you see the icon on the strategy saying ‘algorithm doesn’t have enough data'.

It can be resolved by adding tactics inside the strategy with the best keywords and product pages you want to target. You can also increase/decrease the bids on them via tactic intensity.

3.  Product out of stock - It can be the case sometimes, a break in the continuous availability of the product might affect your sales.

A regular supply is recommended in this case. You can use the inventory management feature in the m19 dashboard to sort out this issue.

4.  Lost the buy box - Every 3 out of 4 sales on Amazon are made through the buy box. You can follow this article of Amazon to win it back.

5.  Bad feedback/reviews - This can cause a drop in sales (both organic and sponsored). In the case of bad feedback, Answer them and organize yourself to avoid bad feedback.

6.  There can be other specific reasons like seasonal trends, end of sales promotion, demand decrease, etc. Act according to incase of those situations.

7.  The ACOS target of a strategy was drastically decreased. For example, a change from 40% to 20% for the ACOS target will lead to a massive decrease of all bids in all the advertising campaigns that are linked to the strategy. If before the change the bid for a given keyword was 1$, after the change it will be 0.5$

8. A high-selling ASIN was ineligible. Sometimes Amazon flags accidentally some ASINs in the wrong category where advertising is not allowed, this might lead to stopping the PPC on the impacted ASIN.

9.  A competitor is running an aggressive PPC campaign. Amazon advertising is based on a second price auction, this means that the impressions will be mainly won by the advertiser that is willing to pay the highest CPC. If a competitor starts bidding much higher on some high-volume keywords, he will likely get more impressions and more sales, this might lead to a drop in your sponsored sales.