So you’ve decided to sell on Amazon. Awesome! The eCommerce platform opens you up to lots of opportunities that can earn you a ton of revenue — sometimes even more than you can expect. If you play your cards right, you’ll be able to achieve great success.
But selling on Amazon isn’t a cakewalk. If you’re new to eCommerce, you can expect a steep learning curve, which makes you susceptible to committing costly errors. If you’re not careful, you may end up destroying your newly minted business before you even taste success.
Below are ten of the most expensive mistakes new Amazon sellers make when first starting out. Make sure to take note of each one and avoid them at all costs.
Not following the rules.
Gaming the system will do you no good. When you start selling on Amazon, you must first gain a deep understanding of what you can and cannot do. If you break certain rules, even without meaning to, Amazon has the power to shut your account down immediately. If you do cheat intentionally, you will get caught and your selling privileges will be revoked.
You don’t vet the supplier.
Not all global suppliers can be trusted. Even if they have a stellar reputation, you can’t be too sure that they won’t stiff you in the end. If you’re planning on sourcing products from suppliers, a good move would be working with the ones that other businesses already trust and transact with. To be extra sure, you can check the database for the list of suppliers your competitors are using to see if they can be trusted.
You don’t optimize your listings.
With the thousands of sellers and millions of products on Amazon, you can’t expect your items to find buyers if you don’t optimize your listings. If they see that your listing is a mess, they will likely move on to another seller and ignore your store completely. To prevent this from happening, be sure to include professionally-shot photographs, accurate descriptions, catchy copy, and competitive pricing.
You order excess stock.
Many sellers are inclined to overstock in case the demand for their items is high. After all, no one wants to run out of inventory and not be able to fulfill orders. Then again, over-ordering stock may end up costing you a lot of money, especially if you’re just paying for the warehouse to house your stuff instead of actually selling them. An option would be liquidation, but it’s likely that you won’t receive your full investment. You can also return the inventory to yourself, but that’s $0.50 a pop, which can add up if you have a lot of products left. As a seller, it’s always best to rely on the actual sales of the product to inform your inventory. It would help if you always stuck to referring to cold hard data when making decisions.
These are only a fraction of the costly mistakes Amazon sellers usually make. Other errors include using inaccurate sales data, ignoring the competition, and entering an oversaturated niche.
If you’re looking for a prep service for Amazon sellers that can help with order fulfillment, storage, and delivery. Get in touch with us today – we’re happy to help.