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Both new Amazon sellers and FBA veterans are bound to make a few mistakes here and there throughout their selling journeys. However, some Amazon FBA seller mistakes are minor bumps in the road, while others can end up costing you thousands of dollars.
1. Don’t Break The Rules
When you start selling on Amazon, make sure you understand what you can and cannot do. If you break certain rules or violate Amazon’s Terms of Service, Amazon can and will shut your account down.
While many examples in this article can cost you hundreds or thousands of dollars, getting your account suspended — particularly if you’ve delivered inventory to one of Amazon’s fulfillment centers already — is the most expensive Amazon mistake a new seller can make.
And know this: if you cheat, eventually you will be caught.
So, when you start selling on Amazon, know and understand their rules. And if you aren’t sure, do your research. We cover what you need to know about Amazon’s Terms of Service in order to protect yourself against these risks.
2. Ignore the Competition
Make sure that when you do product research, you look at the number of competitors in your space. Focus on the number of reviews, too. If the first 10 sellers in your product search results all have more than 100 reviews, the product is too competitive.
You can also use a tool like Jungle Scout’s Keyword Scout to predict Amazon PPC’s cost. The higher the pay-per-click for a keyword related to a product, the more competition you will likely face in that product niche.
3. Don’t over-order stock
A lot of sellers feel that they need extra stock in case demand for their product is high (no one wants to run out of inventory!). It’s also common to order more so that the cost-per-unit is lower.
But over-ordering stock can end up costing sellers a lot of money. Since Amazon FBA sellers pay for Amazon to store their items, when your inventory is just sitting there, you’re spending money — not earning it.
This is why, once you have a feel for what your sales will be, you should use a tool like Fetcher.com. It will create an order plan for you in order to avoid costly overstocking and/or stockouts.
4. Using Inaccurate Sales Data
Amazon does not give away its sales data. If it did, everyone would create the same products. Therefore, Amazon FBA sellers rely on sales estimation tools like Jungle Scout in order to predict product demand.
However, if you use sales estimations that are wildly off, that may result in a loss of capital and/or profits.
5. Poor Listing Optimization
A lot of new sellers fail to recognize that their product listing is like a storefront and an advertisement for your product all in one. For that reason, make sure your product listing is as perfect as it can be. That includes using expert product photographs, effective titles, detailed descriptions, and providing competitive pricing.
Don’t let that stress you out though! Fortunately, nearly every Amazon FBA mistake mentioned here can be eradicated or mitigated by being aware and having the right tools. Check out EHP Consulting Group and we can assist you to get your sales to grow.
