No matter how competition is, returns on Amazon are still impressive, better than any other site. An investment of $10,000 can reap almost 5-6 times the profit in two years if you keep reinvesting all the money and don’t withdraw a dime from the chain. However, selling on Amazon is not a self-run push-up button that works till retirement. Even though a product is not a home run or a huge but just does average can still give you a decent amount of return. Nowhere else can you do that and the opportunity is in plenty.
Don’t let the problems in the inception stage wear you down to quitting selling on Amazon. Everyone makes mistakes but its best to know the mistakes made by others rather than making it yourself to make your experience smoother.
Here Are Some Of The Common Mistakes You Should Avoid While Selling On Amazon
Not Doing Enough Research On The Product
Lying awake and thinking of a dream product is nice but it’s more important to do the homework right before plunging in. Like everyone else you also may have a great idea of some products that are popular and related to your interest. But not doing enough market research can be fatal.
There are lots of tools to give data on what’s actually selling on Amazon. Amazon finds the traffic and demand related to a product and all the data is just laying down in front of you.
Check our article to know more how to calculate cost and profitability, sourcing inventory, barcodes, trademark and more on “How to start an Amazon business with a tight budget. Step by step guide.”
Beginners make a mistake of starting with a trending product thinking it will be a winner. Chances are that if you had done the research right on Google Trend, or Salehoo Research Labs the product you’ve decided may have already reached the peak and is plummeting now.
- Don’t get emotionally tied to anything
- Do plenty of market research, check data, lay foundation upfront
- Understand your niche inside out and Proceed with confidence.
Not Focusing On All The Expenses
At times, starters may fail to take into account all the expenses apart from the obvious ones like the shipping cost and basic Amazon fee. After you calculate the cost of fulfillment by Amazon and take into account picking, packing and shipping to their warehouse, taxes you may not be left with much.
There are many services, Apps and tools that are meant for those that have a hard time finding real products to sell. Not only some of these services offer millions of products with high-profit margins but also have the necessary means to check competition insights and other market analysis tools.
By choosing products with profit margins lesser than 20% you may be missing on the top bets.
Don’t Think You Cannot Compete
Amazon can be an intimidating place, and some sellers have been here for years with hundreds of items and thousands of five-star reviews. There may be other competing products that may be having more reviews than you, their keyword ranks may be going higher than yours, just look at them and learn, worry for yourself and provide the best value to your customers. Just think, all sellers start on Amazon from scratch and their opportunity for everyone so those who offer something extra can easily survive.
There are other things that can make you shine, don’t fret by seeing thousands of five-star reviews of the competitors. A simple way to build credibility is to have a perfectly built listing and make it look as professional as you can.
Having A Great Listing Is Essential
A good listing is the only opportunity to convince the buyer to choose your product over the others. Unlike a traditional retail store where you can build a personal report, here; your listing has to speak for itself. The average attention span of a buyer is just a few seconds, they make a decision within seconds from seeing a listing. Good photography and an impactful sales copy are imperative to succeed. Get photographs and logo designing done through a professional that make a lasting impression.
Keep All The Documents Handy
You may be selling great for some time and you find a message from Amazon that your listing is suspended as your product is inauthentic or counterfeit and they ask for supporting documentation. If you do not supply the document the listing may get deleted and the seller account may also get suspended. The crux of the matter is not to get discouraged and not to think of Amazon as a scourging unbending boss. Proceed with a constructive mind, people with high sales may face such instances regularly, keep all the documents handy and make a docket of the responses to such issues.
Engage In A Price Competition But At Only Slightly Lower Price
This may later become a race to the bottom but to start with, you must put your product at a lower price and gain a competitive edge by making that much needed sale in the beginning. If people can get your product elsewhere for a cheaper price, its not as helpful at the starting of the journey. Use Amazon’s Re-pricer software to adjust to the price of the competitor. There are other such tools that help you define your compactors, set up advance triggers, time limits and more.
Be Aware Of Amazon’s Policies
Play close attention amazons’ policies as they are known to be quite strict. Like including an email address in the listing, using a promotional text in the product images. Amazon Services Quick Start Style Guide is a good place to know all the rules before starting out.
Not Creating A Brand
Jumping into a crowded market with a generic product proves to be a mistake in the longer run. Putting time upfront to create a brand and a private label product will add value to your product and help you stand out. If the product doesn’t stand out, people just don’t have a good reason to pick it over others. Giving a brand puts in a story to it, backed by ethos, give something unique to the market.
Always Attend To Complaints And Ask Customers To Leave Reviews
If you are afraid of handling negative reviews because you are just starting out, then it’s good to know that Amazon sends emails to customers asking them to leave one. It’s always advantageous to follow up with customers directly and ask them for leaving a positive review. However, Amazon’s policies forbid customers to offer incentives in exchange for reviews, so the best way to do this is by thanking them for making a purchase in a follow-up email and generally ask them for a review.
Make it as easy for them by also leaving a link to the review page.
Not investing enough time into marketing
Not having a market strategy can backfire quickly, do not assume that customers will purchase if they wanted your product, instead, make them aware, help them find the product, and convince them about your product. All top sellers invest heavily, use social media marketing on Pinterest and Facebook, have a strategy for content marketing and do SEO on your personal website to divert traffic to your listing.
We do research on figuring out the right products to sell and help to source it right as well. We have years of experience in dealing with some of the most credible suppliers, running campaigns, handling shipping and duties. We as a Amazon FBA consultant, also undertake full consultancy that starts with product designing, Brand registry, Pricing, wireframing strategies to launch a product, doing product listing and optimization, offering product photography services, deriving responsive stores, augmenting sales, solicit reviews, launch PPC campaigns, manage your sales budget effectively and track the performance of your product.