Amazon – unarguably being one of the most extensive platforms for ECommerce transactions – has provided millions of sellers an opportunity to showcase their brands, and expand their businesses to unprecedented heights. This success can be attributed to a lot of factors, but sellers mostly owe it to the reliability that Amazon provides through its well-organized structure of selling rules and guidelines. However, unaware Amazon Sellers or those who are simply new to the realm can commit some deadly mistakes in following them that can cost anywhere from a pretty penny to the whole darn account!
Here are 7 of these mistakes that you must remain wary of if you want to attain the success that your brand deserves –
Mistakes in Setting Up Your Account
Amazon makes its business mainly through the accounts that Amazon sellers set up. With this being the scenario, any discrepancy in your account can be deadly and result in it being removed entirely from the platform.
Some commonly seen mistakes that we see on the sellers’ ends are:
- Trying to set up more than one account for the same brand/product
- Linking your account to other seller’s accounts
- Placing your products in incorrect categories
- Managing your Amazon account the same as other seller platforms with widely differing systems
- Placing an explicit link to other marketplaces or personal websites for your buyers to follow
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Misleading or Poorly Written Product Description
For one, your Product Description is a huge part of why buyers come to your product page in the first place, and for the other, it is a way for Amazon to decide the relevance of your items to the buyer’s search entries. Amazon Listing Optimization also consists of the much-significant keywords that make your brand appear at the top when related terms are searched.
A poorly written product description or non-plain main images that do not fit Amazon standards is a surefire way of deterring your customers from having confidence in your brand, thereby driving them away to your competitors instead – which is why, all Amazon Sellers must be ready with an extremely informative and accurate description in their arsenal!
Not Utilizing Amazon PPC Management Tools
An important part of your sales comes from advertising – that’s an undeniable truth. Amazon provides the amazing opportunity of showcasing the products you want should reach the target audience through Pay Per Click or Amazon Sponsored Ads. These will cost you, but the results are well worth it.
By giving your product more exposure, these ads increase the chance of more footfalls and conversions. A little investment brings more than its worth, but only if you avail the opportunity of Amazon PPC accurately.
Additionally, a product that makes a sale through Amazon PPC increases your organic ranking as the Amazon algorithm considers it popular and in-demand. Hence, ignoring this golden investment that brings 50 times its return as far as profit margins are concerned can be a huge lost chance for you as a seller!
Miscalculating the Logistics and Transportation Time
Amazon provides its own logistics service – Fulfillment by Amazon, or as is more commonly known – the FBA. Amazon sellers, however, are not mandated to use the service and can arrange one on their own. For sellers who handle their own fulfillment process, miscalculating delivery time and inventory levels can damage your seller’s reputation. Avoid poor logistics management and be sure to provide follow-up service when necessary.
People commonly blunder in areas like:
- Keeping shipping rates unreasonably high
- Miscalculating the delivery time and delivering late or way early
- Missing inventory data
- Missing logistics information
- Using cheap packaging
Ignoring Your Competitors
While one upside of selling popular products is incurring higher profits due to demand, we must also consider the downside – which is, that a huge number of Amazon sellers are vending the same product as you are. Scope out your competitors and focus on the reviews and ratings a product receives. If 10 or more than 10 sellers are getting 100 or 100 plus reviews, it means that the competition is high and you need to step up your game!
Having said that, you must also keep in mind not to design your product description, images, and the page layout as an exact copy of another seller, as it will actually lower your authenticity and can even get your account suspended.
Not Paying Heed to Customer Satisfaction
Amazon’s seller score is a significant indicator of how well a seller is doing in meeting the buyer’s expectations on Amazon. The higher your seller score is, the better chances you have of securing a higher purchase conversion rate.
In order to maintain a positive seller score, you must have a well-planned strategy of dealing with negative comments and offering appropriate redressal. Customer feedback is also an opportunity to learn your drawbacks and where to work on your products and services.
However, keep in mind that Amazon strictly prohibits fake reviews, and you must never incentivize your customers to leave a positive review in any way.
Poorly Managed Inventory
Having a non-moving inventory and running out of stock – neither bodes well for a seller trying to make considerable profit margins. Stockpiling too many products is a problem new sellers frequently encounter, as they lack an estimate of the demand and subsequent supply. To remedy this, start with a market survey, and begin slowly, gradually building up your product base.
On the other hand, an “Out-of-Stock” sign on your Amazon store is a surefire way of losing the interest of your potential customers as they’d have already moved on to someone more reliable with their supply. To manage the hassle, using a good-grade Inventory Management tool is a great idea!
Final Thoughts
Everybody dreams of making a successful business on Amazon with their products, and it certainly is attainable. However, no one is born a pro, and mistakes are common when you are starting out – or even when you have established yourself in your field. But that is not the end of your dreams! All you have to do is research, research, and research some more before, during, and after jumping on the venture. If that proves to be too hassling for you, which, honestly speaking, has every possibility of being – we, at Sellryt – an Amazon advertising partner, are here to help you out with all our experts brainstorming through your troubles. Feel free to drop us an email or contact us at Sellryt.com.