Top 5 Problems Faced by New Amazon Sellers
Amazon is the largest online selling platform for entrepreneurs to showcase their products and earn profit. Amazon has the most robust customer base that keeps on growing every day. However, as easy as it is to start selling on Amazon, there are specific problems that newly joined Amazon sellers face until they start earning potential profit.
To get success as an Amazon seller, you often have to deal with a series of issues. If you want to join Amazon anytime soon, we have listed down some of the common problems faced by new Amazon sellers to help you get prepared in advance!
Let’s have a look!
1. Profit is delayed
Before you start earning on Amazon, you have to face particular challenges related to cash flow on your way. Even though the problem is temporary, sellers normally get demotivated and leave at a very early stage.
You must invest enough money to source more products and maintain your inventory. Sellers start selling on the platform, hoping to earn profit at a very early stage to restock their inventory. However, it doesn’t work that day! You must be prepared to invest before you start earning through Amazon. If you decide to get deeper and choose FBA or FBM for your inventory, make sure you have enough funds to continue your Amazon business successfully.
Few suppliers or manufacturers might ask for at least 30% of the inventory cost to start producing your items. If you want to sell private label products on Amazon, you must consider the manufacturing cost in advance.
2. Amazon is a competitive marketplace!
You can’t expect to be the only seller on top when millions of other sellers sell similar products. Due to increasing competition, new sellers have a difficult time entering the market, showing their presence.
Even sellers with high volume products get into listing wars due to having the same suppliers or manufacturers as their competitors. They have to continuously reprice their products to stay ahead. It can worsen when a few of the competitors try and come up with fake names to leave negative reviews on your product page.
However, certain tips and tricks help you stay visible on the platform; click here to find out!
3. Listing wars on Amazon!
As mentioned above, Amazon sellers can’t avoid price wars with such extreme competition in the market. These listing wars usually happen when sellers compete for the Amazon Buy Box or increase their sales.
A common mistake made by new sellers is dropping down their product prices to get more sales. Making your way up by doing this is only going to affect your profit margin negatively.
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4. Receiving negative feedback on Amazon
Amazon keeps an eye on each seller’s feedback score and ranks their performance accordingly. In 2016, Amazon revised its review policy after noticing an alleged manipulation in reviews. Now, sellers can’t manipulate their customers by offering free products to ask for reviews.
However, if you want to earn good reviews, make sure you offer quality products with on-time delivery services. Shoppers are usually kind enough to leave reviews on your page if you satisfy them with your services. Besides, there are a few tools available to help you improve your Amazon review game.
5. Rules and guidelines!
Amazon has certain restrictions and guidelines that every seller must follow to sell on the platform. You can click here to know all about the product guidelines mentioned by Amazon. Amazon has restricted many major brands, making sure you contact the right brands to sell their items in the marketplace.
Apart from product restrictions, there are eligibility, commercial and promotional restrictions as well. Restrictions related to reviews, Buy Box, and content infringement is present as well. In short, if you are a new seller on Amazon, go through the community guidelines to learn before you start!
Amazon guidelines and restrictions are for the betterment of both sellers and customers. Make sure to avoid such issues by understanding the guidelines of Amazon.
We know these problems are not easy to deal with, but it’s surely worth the effort. Let us help you become a successful seller! Sign up now for our 14- day free trial to stay competitive on Amazon.