After entering the recession period, product sales, review scores and profits will continue to decline, some competitors will begin to withdraw, and new designs and better functions will begin to appear on the market. At this time, the primary goal is to reduce the proportion of marketing expenses, avoid redundant inventory, and focus more on new products. Reducing the proportion of marketing expenses does not mean that products no longer need advertising, but that more precise advertising is needed to improve conversion rates.
For links that have completely entered the recession period, they often become niche products. Their demand still exists, but the market is too small. At this time, most customers search and place orders through relatively accurate keywords, and advertising can choose the precise matching of manual ads in product promotion. Although the cost of these accurate keywords is high, they can maximize the effective exposure of products and promote conversions.
Some links enter the recession period because the entire category has reached the off-season, such as sweaters, jackets, outdoor products, etc. For seasonal products, advertising can be temporarily turned off. When the next sales season comes, the product will be upgraded, repositioned and promoted to a certain extent, and its life cycle will be restarted, and sales will also increase accordingly.
For products entering a recession, more attention should be paid to the problem of redundant inventory. Once a product generates a large amount of inventory in the current season, it will seriously occupy funds. Even if the product can continue to be sold in the next sales cycle, Amazon will charge a high monthly long-term storage fee for inventory stored for more than 365 days, and this fee will be incurred every month.
Although sellers can avoid losses by submitting removal orders or abandonment, as long as the product is not sold, it will cause a significant reduction in profits. In addition to long-term storage fees, there are also ordinary storage fees. At this time, the two values of inventory sell-out rate and inventory sales ratio can be introduced for management.