How US Reseller Avoided Stock-Outs by Pausing Ads at Low Inventory

Introduction

A large US reseller dealing in over 2000 CPG products uses atom11 to manage Amazon Ads. One of the challenges that the team faced was management of low inventory ASINs. They found it difficult to manage ad spends while their products ran low on inventory. 

Before atom11:

Their ads team used to manually pause campaigns when inventory was low. 

There were 2 challenges in this: 

1. 2 times out of 4, they used to get delayed on the pausing ads at low stock levels. The product would continue running ads while low in inventory, increasing sales velocity and faster out of inventory.

2. Another big problem was to reverse this action when ASINs inventory was replenished. They used to often be late in unpausing ASINs, and hence ended up losing sales

After atom11:

The reseller's ads team set up a simple automation to pause ads when inventory was lower than 7 days. 

Atom11 automatically paused product ads when inventory was low. Then it automatically un-paused ads when them when inventory was back. 

For ex. One of their products went low on inventory on Feb 15 (as shown in graph below). 

As they had their inventory automation on for that product, the product ad automatically paused. 

Result: 

1. The lower sales velocity prevented out of inventory for the product. Brand not only saved 65$/d of ad spend, but also sales rank drop and BSR drop that would have come with it, had the product run out of inventory.

2. As soon as inventory was replenished, product ads were switched back on and no sales were lost. 

Retail aware Amazon ads bring in spend efficiencies, just as shown above. If you are tired of running Amazon Ads in siloes and are looking to run ads with a modern strategy, then book a call with us here.