How to Prepare for Q4 on Amazon FBA in 2021

In todays article, I’m going to be showing you how to prepare for Q4 on Amazon FBA in 2021.

Okay, so you’re probably thinking “Why is he talking about Q4 in the middle of July?”

Don’t worry, I used to say the same things until this past year where I realised how important it is to be prepared for what we as Amazon sellers, class as the best time to be on the platform. So having said all that, let me get into 5 of the main things that I am doing from now until those crazy last 3 months of the year.

Selling Off Dead Stock

When it comes to Q4 on Amazon, maintaining good cashflow is one of the most important aspects of your business you need to be focusing on.

This is why when it comes to your stock, you want to make sure that any stock that is sitting there collecting dust can be liquidated into cash to spend on more dedicated products for the holiday period.

For example, I recently have been able to clear out some cleaning products that were not selling and was able to generate an extra £400 in capital. Now, remembering this is just one product, this is still roughly £1200 in sales I’m getting in extra if I manage to spend this capital.

Of course, you’re not going to want to do this on every single product, just the ones that will see no effect during the winter months. For example, I have some toys in stock where the price has been completely suppressed to the point I’m making zero profit. In this scenario, I’m simply just pricing this stock at a margin I am happy with and I will let the demand take course over Christmas and secure my sales when the time is right.

The tool I use to re-price my Amazon stock effectively is ProfitProtectorPro. In my opinion this is by far the best tool for the money when it comes to re-pricers.

Account Audit.

The next thing I will be doing is something I do throughout the year anyways but more so leading up to the Q4 months and that is a full account audit.

Some of the things I will be doing are:

  • Deleting inactive listings
  • Repricing my slower selling products.
  • Reviewing my IP Claims & Account Health Screen
  • Review any negative feedback on my account.

Doing all the things will significantly increase your IPI Score (Inventory Performance Index) which is a big catalyst in determining how much stock you can send into Amazon FBA Warehouses during the Q4 months.

Inventory Performance Index - now sell through appears on performance tab - Fulfillment By Amazon - Amazon Seller Forums

More Stock Allowance = More In Stock Items = More Sales!

Reviewing Previous Q4 Sales

This is something people sleep on soo much. Most of the products that you sell in the previous years are likely going to be profitable the following year. I use a paid application called Sellerboard that tracks all my sales to perform this task but you can always record your product purchases using a free tool like Google Sheets.

I simply go through my previous year, note down some of the better selling products and create what I call a shopping list to look out for when the time is right.

Doing something like this early on in months September and October could really give you the edge over other sellers to get those early sales in before the listing becomes over populated.

Signing up for a Credit Card

I know, this is something I should have done a long long time ago but now I have learnt about the power of credit cards, it’s better late than never.

Last year, one of my biggest issues was managing my cash flow and I regularly found myself low on capital which was stopping me from buying more products with my business debit card. However, this year I will have a credit card that obviously works a little different allowing me to continue buying and then eventually paying that card balance off when my Amazon payments come in.

For those interested, the Business Credit Card I have signed up for is the American Express Gold Card.

Get your supplies in early.

As I have said every year, this Q4 is going to not only be the biggest year for Amazon sellers, but also the biggest year for online sellers in general and supplies are going to be at high demand.

I personally suggest over ordering on your Q4 supplies a couple months ahead of time to make sure that you don’t find yourself in a position where you are unable to work due to not having the right equipment.

I personally use Kite Packaging for all my supplies. Feel free to go check out their website here.

So there are 5 things that I am doing to make sure that I have the best Q4 I can possibly have. Are you going to take any of these tips on within your business?

I hope you found this article helpful. If you wanted more content like this, the head to the Make Money Section of the Blog.

Thanks for reading.

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