World P – Our Amazon Seller Guide. 4 mistakes to avoid as an up and coming Amazon FBA seller
Fulfilment by Amazon (FBA) shows a lot of promise in the e-commerce world. Success stories of Amazon FBA business owners generating six figures have inspired other people to try their luck and give it a shot. But as with any business, choosing to set it up is a risk. Amazon is a gold mine to anyone who’s willing to put in the time and effort, but it’s also a massive and complex platform—everyone dipping their toes into the business must be extremely careful.
If you’re planning on building your own Amazon FBA business, you need to be aware of a few common mistakes. We’ll be breaking some down today. Before we get there, however, let’s briefly go over what Amazon FBA is.
What is Amazon FBA in the first place?
Amazon FBA is a program where you let Amazon take care of most of your business’ logistics. You send your products to Amazon, and they’ll handle everything from storage and fulfilment to delivery and returns. They will store your items in their warehouses, pick, pack, deliver, and track your orders on your behalf, and manage returns and refunds should there be any. It relieves the seller of all the heavy lifting when it comes to running a business, so you have more time to source more products and grow your brand. The best thing about it is your operations run 24/7, allowing you to earn revenue even while you sleep!
Mistakes to Avoid as an Amazon FBA Seller
1 – Mismanaging inventory
One of the trickiest parts of the job is figuring out how much inventory to send to Amazon. If a certain item has an excellent selling history, you’ll have a good idea of the quantity you have to ship out. However, it’s crucial to be wary of sending too much. If the product doesn’t end up selling, you’ll get hit with storage fees for the inventory that hasn’t been sold in the past 6 months. Your costs will only add up if the items remain for over a year.
2 – Sourcing products of low quality
Every business owner wants to lower their operating expenses, making it tempting to source items that sell for cheap. Yet, many inexpensive products are of low-quality that may end up disappointing your customers. If you’re looking into selling a private label product, make sure that it will satisfy customer expectations so as not to adversely affect your reputation. The last thing you want is for your store to be bombarded with negative reviews that will ultimately be the cause of your doom. Take the time to perform quality checks to avoid complaints from buyers and yield good organic reviews.
3 – Not putting in the effort on product listings
Part of your responsibility as a business owner is to build product listings that will be irresistible to prospective buyers. That means you have to take the time to write compelling copy (complete with all the valuable keywords) and create high-quality photos so people will actually want to buy your items. Amazon is a crowded marketplace, and failing to build persuasive product listings will force you to close down your business due to a lack of sales.
4 – Relying too much on trends
Hopping on the bandwagon and choosing to sell a hot commodity can help you earn a quick buck, but doing so repeatedly will only hurt your business in the long run. Fads tend to die down quickly, and once the product no longer holds the interest of the majority, you’ll end up with more inventory than you know what to do with. You might have to resort to selling below cost and bleeding money. If you’re going to follow trends, do it with caution and only when you’ve studied the product and your customers’ behaviours thoroughly.
There’s no get-rich-quick scheme when it comes to running an Amazon FBA business. If you want to succeed, you have to be willing to put in the time, effort, and energy. Fortunately, with our guidance, you’ll be able to avoid the mistakes above and be one step closer to your goals.
If you’re looking for an Amazon consulting partner to help you grow your business on Amazon, get in touch with us today! We’re happy to help.