7 Mistakes Made with Amazon FBA and How to Avoid Them

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Amazon FBA can be one of the most profitable side hustles. Here is how to do it right.

Photo by Christian Wiediger on Unsplash

Taking your first steps in the world of Amazon can prove to be a very lucrative decision, which will allow you to strengthen your business in the world of e-commerce and, of course, create your own Amazon Brand Store. However, in order for this initiative to start successfully and continue with satisfactory or significant profits, it is important for each seller to consider a number of parameters and avoid certain mistakes, which can cost customers and limit their profits.

So if you are just taking your first steps on Amazon and using the Fulfillment by Amazon (FBA) service, here are seven mistakes you should try to avoid.

1. You have not created the appropriate seller account

The first step in starting to sell your products through Amazon is to create an account for your business. You can sign up through either a business or a personal seller account. Both of these options have their advantages. However, you are required to know the differences between these two types in order to make the best choice based on your needs. You see, creating a personalized sales account often comes with less risk, but it limits each salesperson from selling more than 40 products each month. So, if you are aiming for more sales, the right thing for you is to create a business account on Amazon. In any case, even if you do not make the right decision for you from the beginning, you will be able to change the type of your account, but until you do, you will have lost time, energy, and potential profits. After all, do not forget that this is a process that is accompanied by a lot of bureaucracy, so it is good to carefully consider your needs and take the appropriate steps from the first stage of your “journey” on Amazon.

2. You do not invoice your products properly

Another mistake that many new sellers on Amazon make is that they price their products incorrectly; that is, they either sell them very cheaply or very expensively, compared to other sellers active in the respective categories. To avoid this mistake, it is important to first do thorough market research around the product you want to sell, to get to know your audience better, but also how those who sell similar products through Amazon price. The truth is that as a new FBA salesperson, you may feel that you need to sell your products as cheaply as possible in order to stand out. However, this move can have negative consequences. In general, it is good to remember that the best-selling products on Amazon are the ones that are neither very cheap nor very expensive. That is, they are products whose prices range from 20 to about 50 dollars. Pricing your products in this range can be a smart move, especially if you are a new seller and this is the first product you promote through Amazon and Amazon FBA.

3. You do not follow Amazon rules

Because the number of FBA sellers on Amazon is large, it is important that everyone who operates on it adheres to its rules and agrees to its terms. A mistake that can cost you is to violate anything on the list of terms and conditions that you accepted while creating your own Amazon account. A seemingly simple violation of the terms of Amazon is enough to suspend the operation of your account. For example, one of the rules that Amazon sellers often “break” is to sell products that Amazon prohibits. It is important, therefore, to be well informed about the terms of Amazon (the company has a detailed list on the website) before you take your first e-commerce steps on it.

4. You do not pay the necessary attention to your product lists

Lists of product descriptions on Amazon play a key role in your sales. It is therefore important to take the time to optimize them, using the appropriate keywords, depending on the category to which each product belongs, as well as its characteristics. In general, in order to make your products stand out, it is good to communicate important information through their descriptions, using impressive titles and bullet points, giving examples regarding their value and use, and taking care to accompany them with high-quality images that can catch the attention of consumers.

5. Your product is not in the right category

Amazon’s market is not saturated though. There are many sellers who try to make a profit by promoting products that may be similar to yours. In an effort to make their products stand out, some sellers place them in categories that are not entirely relevant. However, it is important to place your product in the appropriate category in order to appear correctly in consumer searches on the Amazon platform.

6. Do not invest in a PPC campaign

Consumers on Amazon use “keywords” when looking for a product they want to buy. For new Amazon sellers, of course, it is not easy to see their products “climb” to the top of the Amazon search engine results page in a short period of time, through general organic searches. So, if they want to be immediately more visible through Amazon searches, it is important to use more targeted keywords for their products and descriptions. In any case, for new sellers who want to stand out, it is good not to hesitate to “run” a PPC campaign on Amazon, as this way they will have more chances to increase their sales, to enhance the reputation of the brand or their products and sell more products in less time while increasing their organic rankings. With the help of the right digital tools, you can find the keywords that work best for your competitors and incorporate the specific “keywords” into your own campaigns.

7. You do not know your product well

Finally, not knowing the features of the product you are selling through Amazon and what it offers to the consumer can prove to be a wrong move. This is because a seller who knows exactly what he is promoting can create more accurate descriptions of his product, thus gaining more chances to see it rise in consumer preferences and, of course, in Amazon searches. At the same time, it also has the ability to respond better and more targeted to the comments or questions of potential customers and, in general, to manage the issue of reviews more successfully, which can play a very important role for the reputation of a brand. And its success on Amazon.

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