You launch a new product, such as a different size, flavor, or version, and expect increased sales. But instead, your total sales stay the same. Your ads cost more. And your best-selling product starts slipping.
A 2023 survey by Jungle Scout found that 56% of Amazon sellers added new products last year, but less than half saw their sales go up. That’s because many of those new products didn’t bring in new buyers. They just pulled customers away from other products in the same catalog.
This is called product cannibalization. It’s what happens when your own products compete with each other without growing your business.
Product cannibalization occurs when one of your products steals sales from another in your lineup. You’re not gaining new customers, you’re splitting the ones you already had.
On Amazon, the effect is magnified because:
Let’s say you launch a smaller, cheaper version of a supplement. If it doesn’t reach new shoppers but pulls attention from your full-size best-seller, you haven’t grown. You’ve just made less money per order and possibly hurt your flagship listing’s rank.
Not all cannibalization is bad. Sometimes it’s a calculated move:
More products don’t always mean more sales. On Amazon, clarity beats clutter. Your job isn’t just to add SKUs, it’s to make sure each new listing brings in new buyers or increases average order value.
If you don’t stay ahead of product cannibalization, your catalog can become your biggest obstacle. But if you plan launches strategically, segment your ads intentionally, and monitor keyword performance closely, you can expand without self-sabotage and scale profitably without losing momentum.