Top 7 Common Amazon FBA Mistakes by Sellers
Before starting your new venture selling on Amazon, we’d like to remind you to avoid some key mistakes. The following Amazon FBA mistakes will help you avoid additional costs and adverse consequences.
Amazon has excellent customer penetration. With around 150 million Prime subscribers in 2022, the opportunity to sell on this marketplace is only growing further (Statista). Merely being present on this platform does not reap your profits. You need to understand that Amazon is a marketplace driven by product visibility, price, and customer service. Only a pro seller would be able to succeed in this marketplace. To keep up with the changing industry trends, you need to learn constantly.
Having worked with more than 60 brands, our expertise as an Amazon growth consulting company has benefited us in handling the complexities of the businesses effectively. With that in mind, we provide you with 11 proven Amazon seller tips to ace your selling game on Amazon in 2022. If you are an entrepreneur who wants to gain more confidence in your Amazon selling skills, read this article.
Attend Amazon sellers’ conferences
Stand out from the competition
Combine expertise with innovation
Multi-channel selling – Increase customer touchpoints
Attend Amazon sellers’ conferences
Sometimes, you need more than a webinar or video to enhance your learning curve. Isn’t it? Seminars, conferences, and trade shows are an essential part of an entrepreneur’s life. They offer unique growth prospects to your business. While networking is an important part of these conferences, hearing and learning from other sellers’ experiences makes it easier to get your questions answered.
Have the right mindset
There are a wide variety of products and different types of business models. Then there is you, who wants to make real money. As an entrepreneur, you already know that there’s nothing simple about selling online, but the critical point is to get into the right mindset. First, understand what you want to achieve and build your business by setting the right benchmarks. Attitude and approach bring a difference of attitude for your success. Set your goals upfront – becoming a full-time seller or seeing this as a side hustle. Depending on those goals, pick a business model and products that suit the situation.
Do thorough market research
The rules of online selling change with time and the same goes for Amazon FBA operations. So, analyze the market trends and Amazon best-sellers, then skim through the other online platforms to see if there’s any gap in the market that you can capitalize on. Product research is a primary part of your selling strategy. With proper preparation, you can win half of the battle.
Stand out from the competition
Analyze what your competitors are up to. Find a key differentiator in your market. Reviews and product Q& as are the best places to know your competitors, from the customers’ perspective. See what customers love about your competitors’ products? What are the pain points of these products that leave the customers dissatisfied? What kind of reactions does their product trigger from the customers?
Look at the patterns to get enough information. Now, you can optimize your listings for these questions, and address the gaps in your products. This increases your products’ value in the customers’ eyes.
To learn more about Best Selling Products on Amazon Click here .
Find reliable suppliers
You need to find reliable suppliers to maintain a sustainable supply chain. They are the bread and butter of your FBA model. Without the right supplier, it’s hard to strike a balance between product demand and inventory management. As a result, your business will suffer. You should find someone who can provide you with suitable products, quality packaging, and shipping at a profitable price.
Optimize your product for SEO
It’s not surprising to call Amazon a search engine , as more than 49% of product searches start on this platform. If you are willing to increase your market share, you need to rank on the first page (and in the first few positions) of the search results. If your portfolio is broad, make sure you invest your time and money into profitable products.
Look at the right metrics
Often, sellers are worried about ACoS and conversions and then forget about things in the long term. You have ample metrics to track in Seller Central from account performance metrics, advertising metrics, SEO, and more. Set the objective first, as the metrics you track change, alongside the objectives you have in mind.
For example, if you are a new seller that just launched a product , you need to target a specific group to build the initial sales momentum. If you’ve decided to run PPC campaigns for this product, you will need to look at the sales generated rather than focus on controlling ACoS . Driving more customers to your listings is the primary goal of the campaign. During this phase, tracking your KPIs (e.g. page views and customer reviews) is essential.
Combine expertise with innovation – Learn to see the big picture
As a business owner, you always need to look at the big picture and make decisions based on the metrics you track. KPIs are often subjective and are based on your advertising goals, products, and competition which you track.
You also need to know what metrics to track (and how to interpret them), to make informed decisions.
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One can benefit from a reliable tool that does a big portion of your work and gives you insights to make informed decisions.
And one thing is very obvious. The power lies in the data, and you need to leverage it to make decisions that align with your long-term and short-term business goals.
If you have a consistent product portfolio, ensure you invest in the right analytics platform that works with high precision.
Offer excellent customer service
Effective customer service is a lot of hard work. Providing excellent customer service is essential for online businesses where the buyers cannot directly interact with you. The way you address customer issues proves that you care about them. And, it brings them back to you again and again. Unique packaging, gifts, and handling returns professionally within no time are a few gestures that show customers that you value them. It builds trust and long-term returns.
Consider multi-channel selling – Increase your customer touchpoints
Multichannel selling started to take over the e-commerce world. Regardless of your business size, selling on multiple platforms increases your sales and online presence. Also, social media presence and influencer marketing are something that you should consider growing in 2022. Sell wherever your customers are!
If you haven’t set up your multi-channel platforms yet, start today!
Make your mark
With more than 12 million products being sold on Amazon, it’s easy to get lost in the stream of diverse businesses. So, it’s vital to make your mark on Amazon and other online marketplaces . Brand awareness plays a significant role in making you stand out from the competition. Define the brand personality that you want to resonate with your customers. Make an emotional connection with them. Create a meaningful brand story to set your business set apart from your peers. Like it or not, People choose the brands that they want to resonate with. So, it’s vital to define a brand personality that exactly fits with your target audience.
