So, being the savvy Amazon FBA seller that you are, you’ve probably cashed in on the ever-lucrative Q4. The holiday season has always been a much-anticipated time for both business owners and consumers. Consumers can’t wait to splurge on themselves and their loved ones as the sales keep coming, and sellers are willing to sell at lower prices in exchange for the sheer number of sales they will make.
As a savvy Amazon FBA seller, you also know that you can never ever sit back too long. You always need to be able to adapt, identify, and adjust. Just as Q4 has always filled sellers pockets, Q1 has the potential to leave you frustrated at the lack of movement of your merchandise. Everyone seems to have either lost their appetite for spending altogether or have empty wallets.
So, how do you avoid a Q1 hangover? That’s what we want to help you with today.
Why sales are so low in Q1
First of all, we need to look at the reason behind the problem in the first place.
- Buyers remorse: One reason behind the slump in sales number during Q1 is due to consumers having guilt over their festive season splurge. We all have felt that tinge of guilt before after spending money, and December is usually where our most frivolous spending takes place.
- Empty pockets: Probably the simplest and biggest reason is that people simply have no more “spending” money left. Most people use their Christmas bonuses for savings or family holidays to escape the cold winter. Everyone knows how money seems to fly out of your pocket during the holidays.
- New years anxiety: With a new year comes new challenges. Since all our wants have been taken care of during the festive season, most people hold off on more purchases to see how the new year turns out. Will I get that promotion? Am I getting that increase?
- Back to business: Sure, we all like to make the holidays stretch, but most people have to return to work or school within the first week or so of January. That means consumers aren’t going out and spending as much. Of course, this effect is slightly muted when it comes to online marketplaces.
How to boost your FBA sales in Q1
As you can see, there isn’t much that you can do to address the causes behind the yearly Q1 slump. As long as there is Christmas, New Year’s, and a winter break, people are going to spend big, leading to a decreased appetite to repeat it at the start of the new year. However, there are measures you should be taking to improve your performance during this time.
Don’t sit on your money!
Too many sellers make this mistake. Cash is not eggs. You can’t just sit on it and expect it to turn into something useful or valuable. As an Amazon FBA seller, you should always be on the lookout for ways to make your money work as hard for you as you did for it. After all, that’s what the Amazon FBA dream is about, isn’t it?
Although it may be tempting to cash out all that extra moola, consider using it to boost your marketing, get that personal blog running alongside your Amazon sales, branch out into new inventory, buy new tools or just grow your business in some other way. If you are a retail arbitrage seller, you can also take advantage of those fantastic end-of-year sales to add some high-profit-margin items to your catalog.
Take some time to find out what products are popular. Also, search for those that look like they will boom in the coming year and get in the game early.
Prepare for the high sales dates in Q1
Yes, spring break has never been considered one of the highest grossing school holidays and most of Q1 will seem pretty barren in this regard. However, there are opportunities to be had. To really take advantage of them, you should start planning early. So, don’t sit idly by and mope on your lower sales.
Be sure to take note of national and global holidays. The advantage of an online business is selling to international consumers. Chinese New Year (16th of February in 2018), the Easter Weekend (technically the start of Q2), and Valentine’s Day will all provide a slight uptick in sales if you approach them cleverly. Chinese New Year is great for gifts, toys, and anything to do with parties. Read this guide to find out what make popular gifts during this time. Easter has its own paraphernalia and culturally-appropriate merchandise. And Valentine’s Day is obviously for anything romantic you have on offer. Gift baskets are an excellent choice when targeting these occasions.
Take advantage of the extra time
A slower season also means a lot more time on your hands. You won’t need to do as much inventory management and record keeping, for one. Take this time to get to grips with your business plan and trajectory for the coming year and the immediate future.
The online market is constantly changing and adapting. If you don’t evolve and adapt as your competitors are, you are bound to lose out to them. Now is the time to start reading up, study your numbers for the previous year, and catch up on anything new and relevant to Amazon FBA.
Don’t forget to take some personal time too!
Sell winter merchandise
Just because Christmas and New Year’s is over, doesn’t mean that consumers have suddenly become oblivious to the cold. You can prepare for Q1 by introducing some winter items into your product line. This could be in the form of winter sports gear, outdoor apparel or clothing.
In general, you should use this time to experiment with broadening your product line to avoid another dip in next year’s Q1. Expanding your variety is a great way to insulate yourself from seasonality and keep that great sales record all year round.
Happy New Year!
We hope that this article helps you beat the “sales-chill” this winter! If you think about it carefully, there is no “bad” or “good” time in this line of business. There is only taken or wasted opportunities. To learn more about Amazon FBA and to get expert industry-insider advice from experienced professionals, check out The Seller’s Playbook events or read about how Amazon FBA training can help you boost your business. Good luck and happy selling!