In this episode, Robyn goes over keeping the right stock levels with our senior analyst at Marketplace Blueprint Nate Johnson.
Amazon, compared to other eCommerce platforms, requires a different managing strategy when it comes to stock. Because of the ranking/sales system, if you run out of stock and you start to slip and lose sales. Then you begin to move down on the organic rankings, which reduces your conversions. This, in turn, hurts your search ranking. It's a slippery and vicious cycle, so staying in stock is crucial.
You can optimize your listings, spend on advertising, and do everything to achieve the coveted first result page; however, you can lose all your hard work and ranking by running out of stock.