Stefaniy Martynenko

Terrible mistakes that sellers make on Amazon

It is not often, but it still happens that we are approached by people who have already tried their hand at marketplaces and suffered a crushing failure. At the same time, they are sure that they lost their money due to a stupid accident, because they did everything according to the canons: they conducted a niche audit, analysed competitors, and took into account the risks. Based on such stories, we decided to write about the mistakes of Amazon sellers. Perhaps this article will help you avoid such misunderstandings and help you understand what is important to focus on when building a successful online business.

Mistakes of beginner sellers on Amazon when choosing a product

There is no doubt that the product is the very starting point, the basis and foundation from which everything begins. Once you have decided on this issue, marketing begins. And while you can change the audience, description, or settings of an advertising campaign at any time and without any financial losses, changing the product means actually starting from scratch.

This is where the worst mistakes are made. Amazon is a very competitive platform, so you will be eaten up very quickly with low-quality, illiquid, or low-demand products. We have already written about how to choose a product. Now let’s talk about what not to do:

1. Choose without understanding the reason why it sells well

For example, you’ve noticed that customers have a fad for hairbrushes, and you’re ready to order a bulk order of this miracle device. However, there’s a chance that the good demand is only due to the fact that there’s a commercial for this product on local TV. And as soon as it is closed, the product will no longer be relevant.

It is also important to focus on seasonality. If you do not take this factor into account, it can lead to a decrease in sales if the goods are not needed in the current period.

2. Enter highly competitive listings

There’s always a temptation to join where the money is. For example, starting a business with charging cables or power banks. This strategy will only work if you find a product that has unique properties. Otherwise, you simply won’t be able to compete directly with manufacturers of small appliances and accessories.

3. Focus on products “for a penny”

Why is this related to the category of “mistakes”? Amazon beginners often forget about such a side of sales as mandatory costs. So, the platform charges about 50% of the price of goods below $12 to cover various taxes, fees, and commissions. This leaves you no room to reinvest your advertising profits and severely cuts into your margins.

Of course, there are also successful cases with highly competitive products priced at $5-10. It all depends on the ability to manage the budget and organise a strategy. However, these are exceptions rather than rules. Therefore, we do not advise beginners to focus on them.

Top mistakes: Amazon does not forgive this

As for other areas not related to product selection, the following is worth noting:

  1. Poor calculation of the financial model of the business. It is very difficult to do this without experience. It’s hard to even list all the possible faux pas: from incorrect price arguments to the inability to calculate the advertising budget. There is also a downside: when good ideas are rejected at the start due to shortsightedness in calculating prospects.
  2. Incorrect optimisation (or lack thereof). The mistake is that sellers do not always implement SEO promotion. For example, they do not use all available keywords that can help potential customers find the product. Or they choose irrelevant ones, which can lead to a negative customer experience.
  3. Insufficient attention to filling out the listing. For example, the wrong category choice can lead to the product not being displayed in search results. Poor photo quality and the absence of video content will 100% lead to a decrease in sales. However, so will the absence of catchy descriptions and detailed characteristics.
  4. Lack of work on getting feedback. Feedback is a crucial tool for improving the customer experience, increasing brand awareness and, as a result, increasing profits. You shouldn’t neglect any opportunities to get them, nor should you get carried away with buying low-quality reviews in the hope of quick results.

Here we’ve covered the most common mistakes. Amazon can be an ideal platform for building and growing a successful online business if you take into account all the knowledge gained in this article. We can also suggest that you don’t learn from your own experience, but contact us for advice and get a step-by-step business plan for free.

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