Inventory management is crucial in conducting business, not just limited to Amazon. In my previous role at Fast Retailing, I was responsible for creating product plans for various countries. The goal was to maximize sales in each country. However, the most fundamental aspect was that without products, sales couldn’t happen, resulting in no revenue. Hence, inventory management was incredibly important.

The same holds true for Amazon. Additionally, there is the potential for the following negative impacts on Amazon:

【Product rankings may decrease, leading to a decrease in impressions and click-through rates】

Firstly, low inventory issues can negatively impact product rankings, sales, and the management of PPC campaigns.

When inventory levels are low and PPC campaigns are still active, customers who click on ads may find that the product is unavailable for purchase. This leads to a poor customer experience and wasted ad spend. If customers repeatedly encounter out-of-stock products through ads, it can damage their trust in your brand, resulting in potential loss of sales and a negative impact on your reputation. Additionally, the Amazon A10 algorithm recognizes low inventory levels and may lower the product ranking, reducing exposure and click-through rates. So getting back to your original rankings, product exposure on Amazon may need time and effort.All the more as you may bid on keywords that lead to your low-in-stock product…and you end up winning a bid with no sale opportunity.

To ensure sustainable traffic for your products, it is crucial to align your Amazon PPC strategy with product inventory levels.

●What should you do when inventory levels are low? ●

To mitigate this issue, it’s important to replenish inventory timely.

Many sellers choose to pause their advertising campaigns in such situations. However, this can harm your product’s search term ranking. Once you restock the product, it may take time to reactivate your PPC campaigns and regain momentum.
Just because inventory increases doesn’t mean everything will return to normal.

At m19, instead of “stopping campaigns with low inventory ASINs”, you can create inventory rules that temporarily pause PPC activities only for low-inventory ASINs. For example, you can run PPC ads only when inventory levels exceed a specified threshold or pause ads when product inventory falls below a certain threshold.

Feel free to utilize m19 for this purpose. We also offer a free trial!
Apply here →https://sophola.jp/services/m19/

SOPHOLA Inc,
Executive Officer
Kaori Iino