I'm DONE With Waiting! | Amazon FBA 2020

Starting an Amazon FBA business in 2020? Find how a real-world Amazon FBA UK seller is getting on during 2020 and wether Amazon FBA is still worth it.

I've been selling on Amazon for close to 2 years and I have never gone through a sales dip like this. I have been patient over the last 6 weeks of Lockdown and didn't make any changes to my listings in the hope that things would slowly start to get back to normal, however, it is now clear that I need to take drastic action to boost my sales and save my Amazon FBA business.

I always track the organic ranks for my products and thankfully despite the poor sales my organic ranks have remained strong. They did go a little flat during March so I decided to turn on a little bit of PPC. The PPC campaigns were not profitable, however, they did help me to outsell many of my competitors by 1 or 2 units per day which were enough to persuade Amazon's A9 ranking algorithm to retain/boost my organic ranks.

Unfortunately, even with high organic ranks, my sales have remained very poor so it is now time to take action! These are some of the reasons why I have decided to take action now to ensure FBA is still worth it.

1) Amazon's Inventory Performance Index (IPI Score) - Each seller is assigned an inventory performance scored based on factors including how much stock they have at Amazon fulfilment centres and how well it sells through. If your IPI drops below a score of 350 Amazon will impose shipping restrictions for the next quarter so that you are limited as to how much stock you can send in. My IPI has been dropping for the last 6 weeks and it has just dropped below 400 so I am taking action now before it gets too low.

2) Monthly Storage Fees - Amazon waived 2 weeks of storage fees in March, however, my storage fee bill for the month was still £150. I am expecting this to be around £300 in April. These storage fees are eating up any profit I am making from the small number of sales I am still getting. There is no point in paying these high storage fees for these units in the hope that they may sell well again at some point in the future.

3) Cashflow - I have 900 units of one product in stock and another 1000 on the way, combined that is over £20,000 tied up in inventory. I need to sell through some of this stock as quickly as possible to I can reinvest the money in other products that are selling well.

Although Amazon FBA is dead for my products, I do believe that you can still make money with Amazon FBA. Having said that, I don't think this is the right point in 2020 to start an Amazon FBA business.

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