If you decided to begin selling products on Amazon, congratulations! Considering the fact that about 50% of all eCommerce transactions in the States take place on Amazon, you’ve made a smart move.
However, although your products will be in front of millions of shoppers, that doesn’t mean that you can sit back and relax. If you want to make the most of your product listings, you need to be smart, careful, and methodical.
To get you started, here are 6 common mistakes made by Amazon sellers that you should avoid.
1. Not Buying an Already Profitable Amazon Business
Starting an Amazon business can take time and hard work. Although selling on one of the largest online marketplaces can be quite profitable, it might take a while before you see some success. In fact, many new Amazon sellers usually need between three and six months to pick up the momentum.
So, why not skip this trial-and-error part and look into some selling Amazon account listings? You have an option to buy an Amazon seller account just like you’d buy a physical store, and by doing so, you will know that you’re buying something that already has a share of the market and is generating revenue.
2. Choosing a Highly Competitive Niche
Often, new Amazon sellers fail to do thorough research and instead, they choose products that they believe will be easy to sell. When you’re starting an Amazon business from scratch, it’ll be hard to compete against well-established sellers who have years of experience and thousands or even millions of dollars in revenues.
One of the ways to find a profitable niche is by doing market segmentation. This will help you identify the most profitable products and target the right audience. You can detect profitable niches with low competition in several different ways: by conducting competitors research, determining monetization sources within a niche, exploring Google Trends, etc.
3. Poorly Prepared Product Listing
Once the customers are on your listing page, they’re going to buy your product based on the information you’ve provided there. If your Amazon product listing contains poor-quality images, sloppy product descriptions, lack of product features and benefits, and no keyword optimization, your chances of making a conversion will automatically decrease.
On the other hand, an optimized product listing will help you get clicks and have a high sales rate. There are a number of elements that you need to nail down, including titles, images, customer reviews, etc. You should also make sure that the information you provide is detailed and correct; Amazon’s goal is to provide shoppers with an outstanding customer experience, and if your product listing is not aligned with that, you’ll have a hard time attracting traffic.
3. Poor Inventory Management
You must always ensure that your products are never out of stock. If this happens, your ranking will dip and you’ll lose potential sales to your competitors.
For this reason, you should make it a habit to track your inventory levels on a regular basis. You can use specialized inventory management software to stay on top of your inventory, monitor the number of units you have, and make sure to restock on time.
4. Slow Delivery Times
Online consumers like it when their orders are delivered quickly. In fact, over 40% of shoppers say they’re willing to pay an extra charge for same-day delivery.
If you list your products on Amazon, but manage all storage, shipping, and customer service yourself (this is referred to as a Fulfillment by Merchant (FBM)), and want to set yourself apart from the competition, having fast delivery is one of the best ways to do so. However, if you fail to keep your promise and the orders arrive late, shoppers will start leaving negative reviews, which will have a negative impact on your sales and visibility.
5. Not Paying Attention to Customer Service
Customer service is a critical component of every business’ success. As per Gartner, over 60% of shoppers give priority to high-quality CX over price. The good news is that if you’re selling your products on Amazon, you don’t have to stress about customer service as Amazon will handle it for you.
However, if you are responsible for shipping your own orders, you need to be ready to resolve any issues that might arise quickly and efficiently. If you fail to do so, people will go to your competition looking for better customer service and overall customer experience.
Amazon can be a great sales channel that provides you with access to a huge market. If done properly, selling on Amazon can become a solid source of revenue. However, it’s also a highly competitive place so keep these 6 common mistakes in mind and make sure to avoid them.