Challenges Faced by Beginners on Amazon
Now that there are thousands of online selling platforms, it has become quite easy for sellers to shift their businesses online. While every marketplace has its place, Amazon is currently leading the e-commerce industry. It has given sellers the advantage of offering goods to their massive customer base and making maximum profits.
After dominating the e-commerce sector, Amazon has emerged as a key site for online vendors. Sellers register on Amazon and choose FBM or FBA model to make sales.
Selling on Amazon is not fun and games though. Before getting popular on the platforms, sellers face quite a few challenges. It takes constant effort to be successful and gain satisfactory sales on Amazon.
If you are a newbie or thinking about offering your products on Amazon, here are a few challenges that you might face:
1. Tons of competition:
There are around 8.6 million sellers on Amazon, which means there will be thousands of vendors selling the same products as yours. You can’t skip competition on Amazon. New sellers might have a really difficult time entering the market as a result of the intense competition.
However, to get rid of this issue, try to find unique products with lesser competition and increased demand. Moreover, try to search for methods to raise the position of your listings. The best way to go about it would be through SEO. Research regarding ungated categories on Amazon too! That can give you an upper hand.
2. Profit Delay
You won’t be able to earn instantly on Amazon. Before gaining profits, you will have to face challenges regarding your cash flow.
Some days you will make a good number of sales, somedays you won’t. If you are a beginner on Amazon, it’ll take time for customers to trust and get products from you. Don’t worry, this problem will be temporary. Once you start gaining sales, make sure to invest in marketing and keeping your listing on top.
Another issue could be regarding your inventory. Beginners on Amazon usually make the mistake of waiting for Amazon’s profits to re-order their inventory. That’s a big no-no! Before you generate enough money from Amazon, try to keep your inventory stable by investing your own money. It’s better to always have your products in stock so that your customers stay happy.
3. Feedback issues
Amazon has restricted sellers from directly asking for reviews from their customers. In short, you can’t email your customers and or bribe them with incentives for the sake of reviews. With that being said, it’s also necessary to have positive feedback from your customers on your product page to rank better on Amazon.
The key is to provide the best customer service on Amazon. As a result, your customers will be satisfied and leave reviews on your page. Also, if a customer contacts you directly through email, you can send a follow-up mail and ask them politely to leave a review. Moreover, get help from the review management tools that are available online to help you manage feedback and improve it.
4. Endless price wars
As an Amazon seller, you can’t stay away from price wars. They are usually observed between the sellers that are trying to win the Amazon Buy Box.
Most newcomers on Amazon lower their product prices to win the price war and win the competition. However, they end up compromising their profit margins and get in trouble. To avoid these unnecessary price wars, try to sign up with the best repricing tool in the industry. A smart Amazon repricer will make sure you win the Amazon Buy Box without compromising your profits.
Pro tip: Not trying to get into the FBA vs FBM war but if you want to earn maximum sales without too much pressure, then switch to FBA. Let Amazon handle all the shipping stuff while you take care of other areas.
In conclusion,
You will get there, slowly but surely! Selling on Amazon might not be the easiest, but it can give you the results you need. Make sure to follow the tips mentioned above to sell profitably and smoothly on Amazon. Good luck!
