E-Commerce Strategies

Why Are My Amazon Sales Dropping? 6 Common Reasons

Why Are My Amazon Sales Dropping? 6 Common Reasons

Feb 27, 2025

A sudden drop in Amazon sales can feel overwhelming, but it’s often caused by a few specific issues. Here are six common reasons and how to tackle them:

  • Weak Product Listings: Poor titles, low-quality images, or missing keywords can hurt visibility.

  • Increased Competition: New competitors or aggressive pricing strategies may impact your sales.

  • Negative Reviews: Bad feedback can reduce trust and harm rankings.

  • Pricing Issues: Uncompetitive pricing or price wars can lead to lost sales or lower profits.

  • Stock Problems: Running out of stock or overstocking disrupts rankings and cash flow.

  • Amazon Changes: Policy updates or algorithm shifts may affect visibility or compliance.

Quick Fixes:

  1. Optimize Listings: Use high-quality images, keyword-rich titles, and detailed descriptions.

  2. Track Competitors: Monitor pricing, reviews, and updates using tools like Jungle Scout or Keepa.

  3. Improve Reviews: Address negative feedback quickly and encourage positive reviews.

  4. Adjust Pricing: Use dynamic pricing tools to stay competitive without hurting profits.

  5. Manage Inventory: Avoid stockouts with tools like InventoryLab or RestockPro.

  6. Stay Updated: Regularly check Seller Central for policy and algorithm changes.

By addressing these areas, you can improve visibility, regain momentum, and boost sales on Amazon.

6 Amazon FBA Hacks to Optimize and Increase Sales

Amazon

1. Weak Product Listings

Weak product listings can hurt your visibility and sales on Amazon. With 95% of Amazon listings not optimized properly, this might be a major reason for declining sales.

Improve These Listing Elements

To make your product listings stand out, focus on these key areas:

  • Product Title: Write titles that include your brand, product type, and key features within 200 characters. For example, "FeedoCare Baby Diapers, Unscented, Size 4, 160 Ct".

  • Images: Use high-quality images with a pure white background, ensuring the product fills at least 85% of the frame. Images should measure at least 1,600 pixels on the longest side and feature only the product.

  • Bullet Points: Use all five bullet points to highlight features, materials, dimensions, warranty details, package contents, and usage instructions.

  • Product Description: Expand on the bullet points with detailed information about how the product meets customer needs. If you're brand registered, consider using A+ Content to add extra images and custom templates.

Audit and Optimize Your Listings

  1. Audit Your Listings

    Check your listings against Amazon's requirements to spot missing details, outdated content, or low-quality images.

  2. Optimize Keywords

    Around 80% of successful Amazon sellers prioritize keyword optimization. Use trusted keyword research tools to:

    • Find high-volume search terms.

    • Analyze keywords your competitors are targeting.

    • Track your keyword rankings over time.

  3. Monitor Performance

    Keep an eye on metrics like click-through rates, conversion rates, search rankings, and customer feedback about your product details.

Investing in professional photography (costing $300–$500) can significantly improve your listing's appeal. Taking these steps can help you stay competitive in the marketplace.

2. More Marketplace Competition

Growing competition on Amazon can directly impact your sales. To stay ahead, it's crucial to keep an eye on your competitors. Use analysis tools to track daily price changes, shifts in Best Seller Rank (BSR), updates to products, review patterns, and changes in A+ Content.

Track Your Competitors

Competitor tracking tools can give you valuable insights into how others are performing in your niche. Here are a few popular options:

Tool

Key Features

Starting Price

AMZScout

Product research, sales estimates

$49/month

Jungle Scout

Market position tracking, keyword analysis

$49/month

Keepa

Price tracking, historical data

Free basic version

Key areas to monitor include:

  • Price Adjustments: Stay updated on daily price changes and promotional tactics.

  • BSR Movements: Track how competitors rank over time.

  • Product Updates: Watch for new variations or bundles they introduce.

  • Review Trends: Understand customer sentiment by analyzing competitor reviews.

  • A+ Content Changes: Note any updates to their enhanced product descriptions.

These insights can help you refine your strategy and stand out in the crowded Amazon marketplace.

Stand Out From Competitors

A great example of differentiation comes from Wag Haus, a brand that transformed the bully sticks market. They focused on US-made beef and eye-catching packaging, successfully selling 3 sticks for $55, while competitors offered 30 sticks for $30.

Here are some ways to set your products apart:

  • Elevate Product Quality: Use better materials or add features that solve common issues highlighted in competitor reviews.

  • Offer Unique Bundles: Combine products in a way that provides added value compared to buying items separately.

  • Craft Your Brand Story: Build a narrative that connects with your audience on a personal level.

"Product differentiation is the key to achieving visibility, improving rankings, and increasing sales." - Jungle Scout

Maximize A+ Content
If your brand is registered, A+ Content can be a powerful tool to highlight what makes your product special. Consider including:

  • Comparison charts to emphasize your advantages

  • High-quality lifestyle imagery

  • Detailed product specifications

  • Tutorials or guides for product use

These strategies can help you carve out a distinct space in the competitive Amazon marketplace.

3. Bad Reviews and Feedback

Negative reviews can take a toll on your Amazon sales. A strong review profile is just as important for your account's success as having optimized listings. Studies show that bad reviews can cost sellers around $51,600 annually, and 86% of potential buyers hesitate to purchase from businesses with negative feedback.

Handle Bad Reviews

Amazon's Order Defect Rate (ODR) includes negative reviews as a key factor. A high ODR can lead to serious issues like account suspension and reduced chances of winning the Buy Box. Here's how you can manage bad reviews effectively:

  • Respond quickly: Aim to reply within 24 hours.

  • Communicate professionally: Show empathy by acknowledging the issue, apologizing, and explaining how you'll resolve it.

Once you've addressed negative feedback, shift your focus toward gathering more positive reviews.

Get More Good Reviews

Positive reviews not only build trust with customers but also play a role in Amazon's search algorithm. Some sellers have reported a 41% increase in daily review rates by implementing targeted review requests. Try these approaches:

  • Use Amazon's "Request a Review" button for each order.

  • Join the Amazon Vine program (cost: $200 per product) to connect with trusted reviewers.

"The more reviews you have, and the better those reviews are, the higher your products are going to rank in Amazon's algorithm system. The higher the number of stars and the higher the rating, the greater your conversion rate is going to be."
– Shannon Roddy, Avenue7Media

Since Amazon doesn't notify sellers about new reviews, set up a system to track review trends. Regularly monitor customer feedback to identify and address recurring issues. With 98% of shoppers relying on reviews before making a purchase, maintaining high-quality products and actively managing your review profile is crucial for protecting your sales and conversion rates.

4. Price Problems

Tackling pricing challenges is a key step to turning around sales declines. It works hand-in-hand with improving your listings and managing feedback effectively. In fact, 82% of Amazon shoppers prioritize price when making a purchase decision.

Set Better Prices

Amazon's pricing landscape is highly dynamic, with around 2.5 million daily price changes. Individual prices can shift by up to 20% multiple times a day. Managing this manually? Not realistic. To stay competitive:

  • Use price monitoring software to track competitor prices, promotions, and stock levels.

  • Leverage dynamic pricing tools to automatically adjust your prices based on market trends, competitor actions, and your profit margins.

  • Avoid engaging in price wars. A mere 1% price drop can shrink your profits by over 10%. Research shows over 60,000 daily price wars on Amazon, most lasting less than six hours.

Keep Prices Profitable

Balancing competitive pricing with profitability is tricky but essential. Here's a quick breakdown of pricing strategies and their effects:

Pricing Strategy

Best Used When

Impact on Sales

Lower Prices

You benefit from economies of scale

Attracts price-sensitive shoppers

Equal Prices

Market conditions are stable

Keeps sales consistent

Higher Prices

You offer premium features or quality

Appeals to buyers focused on value

To maintain profitability:

  • Set minimum and maximum price thresholds for each product.

  • Experiment with time-based pricing adjustments.

  • Use algorithmic repricing tools to improve Buy Box wins, which drive 83% of Amazon sales.

"Real-time price optimization is critical to winning the Buy Box. RepricerExpress automatically optimizes your pricing in line with your desired strategy to ensure you win the Buy Box at the right price."
– RepricerExpress.com

Rather than competing solely on price, highlight what makes your product stand out. Tools like RepricerExpress (starting at $179/month) can automate your pricing strategy, helping you hit the sweet spot for both competitiveness and profitability. These strategies not only protect your margins but also boost product visibility and drive sales.

5. Stock Management Issues

Poor inventory management - whether through running out of stock or holding too much - can hurt your rankings, break customer trust, and disrupt cash flow. Just like pricing and listing strategies, managing your inventory effectively is essential for maintaining strong performance on Amazon.

Prevent Out-of-Stock Events

Running out of stock not only costs you sales but can also lower your search rankings. To keep your inventory in check, focus on these key areas:

Inventory Management Component

Key Actions

Impact on Sales

Demand Forecasting

Analyze past sales and seasonal trends

Reduces stockouts

Safety Stock

Calculate based on daily sales and lead times

Protects against sudden demand increases

Reorder Points

Set triggers for reordering stock

Ensures timely restocking

Performance Tracking

Monitor inventory turnover rates

Keeps stock levels balanced

"Accurate forecasting ensures businesses have enough product to fulfill customer orders while not tying up cash in unnecessary inventory", says Abby Jenkins, Product Marketing Manager.

Automation tools like RestockPro and InventoryLab can simplify these tasks, helping you maintain the right stock levels.

Once you've established a solid inventory base, focus on efficient fulfillment to drive even better results.

Use FBA Effectively

Amazon's Fulfillment by Amazon (FBA) program provides a cost-effective way to manage inventory. It can reduce fulfillment costs by 70% per unit compared to other premium options, while also meeting customer expectations - 68% of U.S. consumers expect delivery within three days.

To get the most out of FBA:

  • Monitor your Inventory Performance Index (IPI) score.

  • Use Amazon's machine learning-based forecasting tools.

  • Quickly address stranded inventory.

  • Use FBA Liquidations to manage aging stock.

"Amazon's inventory management tools use world-class machine learning algorithms to create customized restock strategies, taking into account current inventory levels, restock preferences, supply chain constraints, and anticipated demand", explains Kevin G., from Amazon's FBA Inventory Optimization Team.

Pay close attention to seasonal trends. Historical data shows that Q4 sales are 112% higher than average, while Q2 and Q3 typically dip to 72-73% of normal levels. Plan your inventory early and aggressively during peak seasons to avoid missing out.

6. Amazon Platform Changes

Amazon's platform is always evolving, and these changes can directly affect your sales. From updated algorithms to new policies, staying informed is key to maintaining visibility and compliance.

Search Algorithm Updates

Amazon's A10 algorithm places more weight on seller reputation, organic sales performance, and external traffic compared to the older A9 system. This means sellers need to prioritize customer satisfaction and bring in traffic from outside Amazon to stay competitive.

Here’s how you can adjust:

  • Use email marketing and social media to drive external traffic.

  • Shift focus toward organic sales rather than relying heavily on PPC campaigns.

  • Leverage tools like Helium 10 and Jungle Scout for smarter keyword optimization.

"Customers must be able to find your products before they can buy them."

But it’s not just about algorithms - policy changes can also have a big impact on your business.

Policy Compliance

Keeping up with Amazon’s policy updates is just as important as understanding its algorithms. For example, starting January 2025, the window for FBA loss and damage claims will shrink from 18 months to just 2 months. Also, beginning March 10, 2025, reimbursement for lost items will be capped at $2,000, with compensation based on manufacturing costs.

Key compliance tips:

  • Monitor your account health metrics daily.

  • Ensure your listings are accurate, include valid identifiers, and feature high-quality images from multiple angles.

  • Follow Amazon's review policies carefully - remember, 82% of Amazon purchases involve the Buy Box.

"...To be Earth's most customer-centric company... Our actions, goals, projects, programs, and inventions begin and end with the customer top of mind."

Staying ahead means regularly checking Seller Central for announcements. This not only keeps you compliant but also helps you maintain your competitive edge.

Next Steps to Fix Sales

Here’s how you can tackle each issue step by step.

Start by conducting keyword research with Jungle Scout's Keyword Scout. Make sure to naturally include high-potential keywords within the first 80 characters of your product titles.

Next, improve your listings. Use high-quality, well-lit photos that showcase your product from multiple angles. Pair these with detailed descriptions that clearly explain the product's features and what it offers to customers.

Take a closer look at your competitors. Use Jungle Scout's Competitive Intelligence to track market trends and competitor pricing. Additionally, set up camelcamelcamel alerts to stay informed about any price changes.

For reviews, use proven strategies to boost both quantity and quality:

Review Method

Impact

Cost

Amazon "Request a Review"

26% more weekly reviews

Free

Early Reviewer Program

Early, targeted feedback

$60 per SKU

Amazon Vine Basic

Reviews for up to 5 products

Free

Did you know? Just five reviews can increase the likelihood of a purchase by 270%.

Once your review strategy is in place, shift your focus to inventory management. Avoid stockouts by using tools like InventoryLab through Seller 365 ($69/month).

"I consider InventoryLab one of the most important pieces of software in my Amazon arbitrage business. I only wish I had discovered it sooner."

  • Steve C., InventoryLab Customer

Lastly, make it a habit to check Seller Central's dashboard regularly and stay informed about any updates to Amazon's policies.

Related posts

  • Amazon SEO vs PPC: Which Strategy Drives More Sales?

  • Amazon A+ Content Guide: Boost Product Visibility

  • How I Made $100,000 in My First 180 Days Selling on Amazon (Step-by-Step)

  • I Tried 3 Amazon Growth Hacks - Here’s What Worked (And What Didn’t)