If you have a knack for selling making people fall in love with products and are able to convince them to buy the products they love, then you should probably venture into Amazon business. Amazon provides a great platform where you can showcase products to consumers sell them at a profit.
You can choose to sell your own products on the platform or choose to sell on behalf of a third party at a profit. Irrespective of the products that you opt to sell, there are mistakes which other previous sellers on amazon have made before which you will need to avoid for a more profitable venture in the Amazon business.
To help you avoid making similar mistakes to the ones I made when I first started selling on Amazon, I have put together some of the most common mistakes that novice sellers make and how you can avoid making them. Learn from my mistakes to make your first few years on Amazon as profitable as possible;
13 Mistakes I made on Amazon when I First Started Selling on Amazon
Not reading the Amazon Guidelines and rules
When you signup to Amazon, there are stipulated rules and guidelines on how to conduct transactions and interactions with consumers. Failure to read to and follow these guidelines, will lead to breaching of the rules and subsequent suspension of your account.
Lesson- Read and follow Amazon’s seller policies to the letter.
Selling products with very minimal profits
When starting as a seller on Amazon, it is not uncommon to end up dropshipping products which have a very low profit. Desperation and the need to make your first sale are some of the reasons why people end up selling products which have very little economic value for them.
Lesson- Always sell products with a profit of at least $10 once the customer has received the product.
Lack of proper product research
It is not uncommon for people to dive into products and niches which are not as profitable for lack of proper research. People find themselves selling products purely because of the need to sell and not because they have a proper understanding of the market fundamentals and dynamics of selling the said product.
Lesson- Always conduct extensive product research on the industry and product you intend to start selling on Amazon.
Lack of proper stock management
Improperly managing your stock will result in products running out and you inventory won’t cover the desired 90 days period. This will tarnish your reputation and unfulfilled orders. In the end, your sales will take a nosedive and you might end up closing shop.
Lesson- Properly manage your stock and take into consideration the amount of time it takes to package and ship your products to customers.
Buying too much stock to begin with
Investing too much money into the initial stock without tasting the waters, is risky and can be counterproductive. If buyers don’t buy their products, they incur huge losses and end up selling at throw away prices.
Lesson- Always start with a small batch while monitoring the progress. Increase your batches depending on the market response to your product.
Focusing on a single product
Lack of diversity in the products on offer, limits your chances of making it, especially if the product you opt for is not in demand.
Lesson- Diversify the type of products you sell to avoid relying on a single product to make profits.
Unhealthy competition against the big boys
Trying to match the already established brands will only take you back. Never try to match brands and companies who have been in business for years.
Lesson- Use the big boys as a reference point for pricing and marketing strategies but never try and compete with them, you will lose out.
Lack of proper listing
Not many people give enough thought to the product listing and this takes a toll on the brand’s image.
Lesson- Use optimized listing with enough information on the product to help people get a better understanding of the product.
Poor product titles
Bad product titles are a put off. If the title doesn’t follow the formatting elements and is too long, chances are that the product won’t sell as desired.
Lesson- Always use the proper title formatting elements and avoid trying to promote products using the title.
Lack of proper customer service
Delayed responses to customer inquiries and general lack of proper customer service results to dings in your Amazon account. Too many dings and you risk losing your account entirely.
Lesson- Always check your email for inquiries and respond appropriately to customer queries.
Downplaying customer feedback
Overlooking customer feedback and reviews can be costly. Never omit any customer feedback or even a review, however trivial it looks.
Lesson- Customer feedback can meant the difference between a successful Amazon career and a suspended account.
Poor marketing
Without proper marketing, it is easy to fall behind in the race against your closest competitors. Judiciously employ paid marketing and you will succeed in Amazon business.
Lesson-if you can’t use paid marketing yourself, let the experts market on your behalf.
Give the experts a call
Want help starting Amazon business? Well, give us a call here at Runrex and we will gladly be of service to you. We have helped thousands of start their Amazon careers and we will help you as well.
Additionally if you require professional photos of your products to showcase on your Amazon business, then contact Bitgale Photography for the best professional photographs which will help market your website.
PPCHire’s digital marketing services are on hand to help you get started on paid marketing and take your business to the next level. Give us a call and we will gladly be of service to you.