Uncovering Consistent Trends in Amazon Sales: A Guide to Monthly Reviews
Uncovering hidden consistency in Amazon sales: Monthly review trends reveal a potential for consistent demand with diverse product offerings, proper inventory management and access to capital
Amazon is a constantly evolving marketplace, with sales fluctuating throughout the year based on a variety of factors. While many sellers may assume that the number of orders per month on Amazon is highly variable, the truth is that there are consistent demand drivers that can be predicted, as well as unpredictable factors that can influence sales. In this article, we'll break down both the predictable and unpredictable demand drivers that affect Amazon sales on a monthly basis.
Predictable Demand Drivers
While there are always going to be variations in sales from month to month, there are certain predictable demand drivers that affect Amazon sales across the board. Here are some of the most important ones, broken down by month:
January: Post-holiday sales, gift card redemption
February: Valentine's Day, President's Day sales
March: Tax refunds, spring cleaning/home improvement projects
April: Easter, Earth Day, gardening/outdoor projects
May/June: Graduations, summer travel, Memorial Day/4th of July sales
July: Amazon Prime Day, summer sales, back-to-school prep
August: Back-to-school sales, end-of-summer clearance
September: Fall home improvement, early holiday shopping
October: Halloween, pre-holiday shopping, Columbus Day sales
November: Black Friday/Cyber Monday, Thanksgiving, early holiday shopping
December: Peak holiday shopping, end-of-year clearance
Unpredictable Demand Drivers
In addition to these predictable demand drivers, there are always going to be unpredictable factors that can affect Amazon sales. These can include things like unexpected weather events, global pandemics, changes in consumer behavior or preferences, and more. While these factors may not be as predictable as the monthly demand drivers listed above, it's important for sellers to stay aware of any changes or trends that could impact their sales.
Unlocking Amazon's Consistent Sales Potential
While there are predictable demand drivers on Amazon, it's worth noting that a combination of predictable and unpredictable drivers can drive monthly consistency. A useful indicator of seasonal demand is the number of reviews received by all third-party sellers on Amazon combined over the past two years, broken down by month. Although the reviews show some fluctuations, the number generally remains consistent throughout the year. The decline year over year is due to a lesser number of customers leaving reviews. Also, the reviews typically lag orders by 2-4 weeks, indicating seasonal demand delayed by a month in the chart.
By offering a varied range of products, having access to sufficient capital, maintaining optimal inventory levels, and ensuring competitive pricing, Amazon sellers can enjoy consistent demand throughout the year without relying on predictable seasonal spikes in demand.
Importance of Inventory Planning
Whether dealing with predictable or unpredictable demand drivers, inventory planning is key for Amazon sellers looking to stay ahead of the curve. By keeping an eye on monthly sales trends and making sure to have enough inventory on hand, sellers can avoid stockouts and lost sales, while also taking advantage of seasonal spikes in demand. Additionally, sellers should remain flexible and prepared to adjust their inventory levels as needed based on changes in demand.
While Amazon sales can be influenced by a wide variety of factors, both predictable and unpredictable, sellers who stay aware of these demand drivers and plan their inventory accordingly will be in the best position to succeed. By paying attention to monthly sales trends, staying informed about market changes, and always being prepared, sellers can ensure that they are maximizing their sales and taking full advantage of the opportunities available on Amazon.
Importance of Access to Capital
With the steady demand for a variety of products on Amazon throughout the year, sellers need to ensure they have enough inventory on hand to meet this demand. However, this can be a challenging task, particularly for small businesses or new sellers with limited cash flow. Without access to capital, sellers may be forced to limit their inventory or risk running out of stock, which can lead to lost sales and lower revenue.
Furthermore, having access to capital can also help sellers take advantage of seasonal spikes in demand by investing in additional inventory ahead of time. This can allow them to maximize their sales during peak periods, while also ensuring they have enough inventory to meet demand throughout the year.
Access to capital is a crucial factor in achieving consistent sales on Amazon. By having the funds necessary to invest in inventory, sellers can maintain adequate stock levels, meet customer demand, and take advantage of seasonal opportunities. Whether through traditional financing or alternative funding sources, having access to capital can help sellers stay competitive and grow their business on Amazon.