Your Official Q1 Checklist
As we wrap up 2023, many Amazon sellers are coming off their biggest quarter of the year. This is of no surprise as Q4 has been known to be the most lucrative time of year for Amazon sellers. While Q4 can yield exceptional results for the majority of sellers, it is important to set your sights on Q1 and the year ahead. Below I have put together a checklist that will help you seamlessly transition into the new year.
Assess Inventory Levels
When it's all said and done Q4 can be an exciting yet overwhelming time. While many sellers have experienced record setting sales numbers for the year, some sellers tend to find themselves losing track of their inventory levels leaving their businesses in a state of disarray to begin the year.
To combat this, I recommend completing a full assessment of your inventory levels to start the year. If using FBA, I encourage sellers to start off by looking at their FBA inventory dashboard to determine the current state of their inventory. This will give you an idea of where you stand on FBA inventory to begin the new year. Depending on inventory levels, it may be time to consider placing another order or even removing some inventory from FBA back into a 3PL to avoid storage fees.
Evaluating Q4 PPC Performance
While PPC performance may not be the same during Q1, it is important to remain consistent in monitoring your ad account. As sales and demand begin to slow down, sellers tend to pay less attention to their PPC campaigns leaving them on auto-pilot. However, this is a great time to analyze the Q4 results of your advertising campaigns and refine your advertising strategy for the new year.
To properly analyze your Q4 advertising results, I recommend starting off by looking at your top performing campaigns and identifying keywords that generated the most sales. During this time it is important to note what targeting method was used. In the case of phrase and broad match, it is important to closely analyze customer search terms used for the corresponding keywords. Sellers can then take higher performing customer search terms and implement them into their campaigns as keyword targets.
Refine your ad spend
To capitalize on the Q4 demand, most sellers will tend to increase their advertising spend to compete for optimal ad placements. While this is a good strategy to implement during the holiday season, it is important to reassess going into Q1. Many sellers make the mistake of forgetting to address their ad spend going into the new year, leading to unoptimized spend.
To ensure your ad spend is in order, I recommend looking at your CPCs (cost per click) and making proper bid adjustments. While having higher CPCs can be acceptable during the holiday season, it is vital to assess your current bids to ensure that you are not overspending on your targets.
In conclusion, as we kick off 2024, it's crucial for Amazon sellers to shift their focus from Q4 to effectively prepare for Q1 and the upcoming year. The provided checklist offers essential steps to help you ensure a smooth transition into the new year. By implementing these strategic tips, sellers can better position themselves to navigate the post-Q4 period and set the stage for continued success in the year ahead.
