Helping You with Your Amazon FBA Business

How to Survive and Bounce Back from a Bad Month of Sales

John-Denver-QuoteEver since I started selling on Amazon, I’ve always had short periods of low sales days and high sales days.  But recently, my low and high days each lasted a month.

April was one of my best months and then May was my worst month.  What caused the May drought?  I don’t know.

But to bounce back in June, I decided to switch strategies and lower prices on most of my items.  The results are that my inventory is selling, but at a lower selling price than what I initially planned for when I purchased the items.  However, I’m getting rid of old inventory and happy that I can move on to better inventory.

Here’s a screen shot of my monthly units sold from June 1 to June 22.  You can see that I’m selling much more in June than I did in May:

Amazon FBA Screenshot

June 1 to June 22 Units Sold

How to Get Through a Bad Period

You will have bad periods and to get through them, here are two tips:

Have an “emergency” fund in place: Just like you should have an household emergency fund, it’s smart to have an Amazon FBA emergency fund to get you through those low sales periods.  For me, I keep a minimum of $500 in my business checking account at all times.  This covers over two months of my monthly subscription fees and all of my sales tax obligations.

Suze Orman Quote

To be honest, I didn’t start keeping a $500.00 minimum balance until earlier this year.  The reason why I started doing this was because in mid-January, I wasn’t paying attention to my checking account balance and four days before my next Amazon payout, I went a little crazy and:

  • paid off my business credit card two weeks before the due date
  • bought almost $200.00 of inventory from WinCo with my bank debit card (WinCo doesn’t accept credit cards)
  • paid higher than normal sales tax payments as I had monthly, quarterly and annual returns due

My checking account balance went down to $36.87 and at the point I told myself that I won’t let the same happen again.

Being so careless with my business account still surprises me.  This is because I went through a tough financial period several years ago and to avoid that from happening again, I spent the past four years building up my household emergency account.  Believe me, having one reduces stress because you don’t have to worry so much about the unexpected.  Why I didn’t apply what I learned in my personal life to my business is a mystery.

My advice to you is that if you don’t have a household and a business emergency fund, start working on that and here’s a blog post with some helpful tips.

Lower prices to be more competitive and to get more sales:  My massive price lowering strategy was not only to get sales going again, but to also free up extra cash to purchase new and better inventory.

Here are a couple of pricing rules that I followed:

  • I never went below the Buy Box price – sometimes I priced the same but in most cases slightly higher.  The last thing I wanted to do was trigger other people’s automatic repricers to go lower if I were to go lower.
  • I never went below the my minimum price – I’m not ready to take a loss on any items, so I made sure that I didn’t go too low.  For a few older items, I matched my minimum price but for most items, I was higher.  You can read more about minimum pricing in this post.

The cool thing was that I finally sold this Puzzle 3D game that I found at a thrift store last August.


By all means, I’m not claiming to be a pricing expert.  I don’t monitor prices as often as I should and so far I haven’t had any luck figuring out repricer settings.  But I do believe that lowering my prices got my sales going again.

Good luck with your selling and are you prepared for slow periods and how do you handle them?

As always, I would love to hear from you.  Please leave me a comment below or on my Facebook page!


{ 2 comments… add one }
  • AliB June 26, 2015, 6:08 am

    enjoyed your post. Great tip about the emergency fund
    will take that into consideration ASAP.


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About Diana

I am working towards creating a full-time income by selling on Amazon. It's a lot of work but very fun! If you're interested in selling on Amazon, be sure to follow my blog as I'll be providing you with lots of tips!

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