What should I do? I have a few listings that aren’t selling even one unit due to severe price tanking from a few sellers. I mention this because I’ve noticed this kind of extreme price drop typically coming from sellers in one particular region. They seem to do it repeatedly, dropping prices by a few cents or even selling at a loss, possibly just to boost their accounts. This often results in negative ROI for them, yet they continue. (Please, if this is you, avoid this approach. The market is large and profitable enough for everyone; match other sellers’ prices and wait your turn.)
I’ve been waiting for these sellers to sell out, but it’s not happening. It’s been over two months, and the only option now seems to be taking a loss. Product costs won’t be recovered, and my ROI will go negative. If I keep holding onto this inventory, Amazon will charge me, and my sell-through rate has already dropped because of these listings.
Has this happened to anyone else? What did you do about it?
There will always be ASINs where this happens, it’s part of the game. Spread your capital over more ASINs so that, overall, you are gaining.
Focus on getting the best prices, this will give you an advantage. Buy less stock, just enough to sell within 2–3 weeks, so if the price drops, you won’t be stuck with excess inventory, and your sell-through rate will improve. You don’t have control over what other sellers are doing, so concentrate on the first two points.
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Don’t you also have an advantage by having more stock, making it more likely to win the Buy Box? For some products I purchased, I went in a bit deep, hoping to win the Buy Box. It’s a bit risky, but is it possible to test a new product with less stock to get an idea of whether it performs well?
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Usually, they use repricers that automatically lower prices to stay competitive. New sellers often have a strategy of holding inventory for a longer time. It’s better to sell at break-even and move into other products that sell quickly. Why waste another month?
In business, we sometimes have to accept losses. So instead of holding onto inventory, sell it and use the money to invest in other products.
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