Running an Amazon business means checking all the areas and processes where you could possibly be making or losing money. There are certain things that can eat your profit without you realizing it. So before your FBA business loses a large chunk of your money, identify where the losses are coming from so you can minimize or stop it all at once.
So, how do you do that? We share the top 3 reasons why your FBA business is not making money and ways to fix them.
Reasons Your FBA Business is Losing Money
#1 Inadequate Stock Levels
If your inventory is running low or you’re simply out-of-stock, you not only lose potential sales, you also give your competitors the advantage of winning new sales and retaining customers for future orders and reviews.
Have a good inventory management system in place. When you have complete control over your inventory, you gain a better understanding of which products are selling and which are not. You see the products that are moving and those that are selling slowly.
You are also able to track where your assets are and what they are worth. You also avoid having too much inventory, which might lead to profit losses. Take note, Amazon charges every item that stays in their warehouse over a period of time.
#2 Losing the Buy Box
Winning the buy box is essential when selling on Amazon as this exponentially increases your chances of making a sale. In fact, more than 82% of all sales on Amazon go through the buy box, so losing it is equivalent to losing sales.
The rules to winning the buy box is constantly changing. However,