Q4 is one of the best characters/numbers for an FBA seller. Q4 represents the fourth quarter of sales for the year. In the business world, Q4 refers to the months of October, November and December, but for the Amazon world, our biggest sales are in November, December and January.
Traditionally, when it comes to sales, the fourth quarter brings a big boost. It is not an exaggeration to say that a seller on Amazon can triple or quadruple their income in the fourth quarter. I’ve been through Q4 five times as an Amazon seller, and I can attest to that.
In fact, in 2012, Amazon awarded me as a holiday bestseller. This means that my sales are in the top 25% of all Amazon sellers and my customer satisfaction rating is excellent (A+) at the time. (Note, 2012 was the last time Amazon offered this distinction).
Here are some thoughts I have as we are now in the fourth quarter. These are the tips that helped me win the Holiday Bonus in 2012 and have allowed me to increase my profits every quarter since then. As always, there are differences in each suggestion, but in general these are the Amazon sourcing strategies I implement as we approach Christmas.
- Don’t lower all your prices to match the lowest price
Like most sellers, I review from time to time. With the dramatic increase in sales on Amazon in Q4, I know that the cheaper competition will eventually sell out and my higher prices will be there for a willing buyer.
In the fourth quarter of 2015, Amazon’s fulfillment led to more than one billion items (yes, that’s billion with a B). This equates to 126 sales per minute, 7548 sales per minute, 452,899 sales per hour, and nearly 11 million sales per day through FBA.
This is the best time to wait and get the prize you want. The only exception to this guideline is if your product has a high market value (for example, more than 300,000 for toys and games) AND you have many competitors who pay lower prices than yours. In this case, I can match a competitor’s price cheaper, especially if they have more products.
- Increase the price of certain items
Using the same thought process as above, I will raise my prices on certain items that have a very good, long-term market value. Also, when I first listed products in Q4, I priced some of my items higher than usual because I knew the cheaper competition would sell out soon. . It surprises me sometimes, but when I take the time to raise prices on some of my items, most of those items sell out later in the day.
- Check your latest product shipment
When I look at my waiting market, I don’t just want to see all the music that I have to pay for, but I’m looking for new sales of what I have FBA sent. If an item sells out the day it arrives in the warehouse, I can check my price and make sure my price is competitive.
Most of the time in a quarter, you can pay for the same thing on Monday when you ship it on Amazon, but when it is posted on Friday there are so many sales that the price is already high. If you get direct sales, then check your sales… If you see that your sales are too low, increase your sales!
- Watch out for multiple sales of the same item
Also, when you are looking at your pending order, if you suddenly find that you have many sales of the same item, you can check the price for those items. It’s the same idea process as above… If you get multiple customers of the same thing, your price can be too low.
- Buy! Shopping! Shopping!
It’s simple math: you’ll only sell more if you have more to sell. In the fourth quarter, I buy more often than before. It’s an interesting cycle: I send more things to FBA, things sell, and I have to pay again… I make money and send even more things to FBA, more things to pay . It was a snowball effect in the fourth quarter that caused a huge increase in my Amazon payments.
- Expand your marketing reach
When designing, it is always a good idea to consider market status reports when making a purchasing decision. In the fourth quarter, I buy everything with a higher market value than before. If my target market for toys and games is 150,000, I can increase that target to 250,000 in preparation for Q4.
Many items are completely sold out on Amazon during the fourth quarter, so shoppers start looking for other items that may not be as popular. Each model will be handled differently, but I’m still increasing my market share for Q4.
- Send the product to Amazon ASAP!
If you have products in your home that you haven’t sent to Amazon, send them now! What do u mean? Look everywhere for products you may have forgotten. Look in your bathroom, garage, in closets, under your work desk, etc. Products sitting around your house will not sell through FBA. Some people are worried about Q4 stocking costs, but honestly, if you expect something to sell in November or December, ship it today!
BONUS TIP – January is one of the best times to sell on Amazon. People return Christmas presents they don’t want and use the money to spend on things they really want. People also have Amazon gift cards burning a hole in their pocket. For these reasons, sales in January are amazing. I have heard some sellers say that their sales in January are almost as good as their sales in December, although I have not seen that. So send products to Amazon!