Should I panic if I see a big drop in my BSR?

BSR ranking do fluctuate a lot, however precipitous drops should be taken seriously. Perhaps your listing was hijacked, delisted by Amazon or ran out of stock. These are all things that you should be aware of. Hijacking is when another seller (usually a manufacturer), duplicates your product listing by taking all of your sales copy and photos and then advertises it at a lower price. Rather than the customer getting your actual product, they send out a cheap copy but the customers are often none-the-wiser. This is a serious problem.

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