Many Amazon sellers are experiencing an unexpected crisis during what should be their most profitable period. Despite increasing advertising expenditures, order volumes remain stagnant, with some reporting sales at just half of last year's levels during the same season.
Seller Frustrations Mount During Peak Season
Online seller forums reveal widespread concern about declining traffic. One merchant reported that despite adding ten new product listings this year, their sales volume reached only 50% of last year's performance. Another seller shared that their mid-November revenue dropped from over $10,000 in 2021 to just $900 this year, despite increased inventory preparation.
The situation appears particularly severe in the Japanese marketplace, where some sellers report only weekend sales activity, with weekdays producing just a handful of orders. This unexpected downturn has left sellers questioning whether competition from emerging platforms like Temu, changing platform algorithms, or other market forces might be responsible.
Analyzing Amazon's Traffic Decline
Data analysis of Amazon.com's traffic patterns from November 2020 through October 2022 reveals a significant reduction in paid traffic beginning July 2021, followed by organic traffic declines post-Christmas 2021. Several key factors contribute to this trend:
- Post-Pandemic Consumer Shifts: As physical stores reopen, consumers are returning to in-person shopping experiences.
- Economic Pressures: Global inflation has forced consumers to prioritize essential purchases over discretionary online shopping.
- Platform Competition: Emerging e-commerce alternatives are diverting traffic from Amazon's marketplace.
- Seller Diversification: Following Amazon's account suspension wave, many sellers have reduced platform dependence by expanding to alternative marketplaces.
Strategic Advertising Approaches for Different Product Lifecycle Stages
In this challenging environment, targeted advertising strategies become essential for maintaining visibility:
New Product Phase: Focus on precise long-tail keywords to build initial ranking weight. Avoid highly competitive broad terms that carry excessive cost-per-click rates for unestablished listings.
Growth Phase: Gradually incorporate core keywords while maintaining budget control through strategic match type selection. Broad and phrase matches can help manage costs in competitive categories.
Maturity Phase: Expand keyword portfolios through advertising reports and competitor analysis. Established listings can support simultaneous targeting of various keyword types.
Successful Amazon sellers emphasize that keyword optimization requires continuous refinement. There are no permanent solutions in this dynamic marketplace—only ongoing adaptation to shifting conditions can ensure long-term viability.