We looked at the stories of some failed Amazon sellers and picked out some lessons Amazon sellers or online entrepreneurs can learn. Amazon's Seller Central has clear platform selling policies, as well as best practices and mistakes for retailers to avoid.
However, if you're a newbie, you might be making the same mistakes as a failed seller without realizing it. Among these requirements, Amazon lays out a number of fine print for the shopper's experience.
That said, there are a few other lessons you can learn from Amazon sellers' failed mistakes from setting up accounts to selling and processing orders.
1. Account Settings – Get it right the first time
This is one of the key steps in creating your online Amazon selling business, where most sellers spend their time, although it varies by management automation or agency.
An Amazon seller account provides a holistic view of current or ongoing orders, products purchased, and content listed on the platform. It's also where sellers manage inventory, product performance, define campaign settings, and track feedback.
Do it right: It's critical to do this step right and have a solid foundation for your online store and product to avoid short-term or long-term failure. Also, don't have two seller accounts. Amazon's policy is just one seller account per Amazon seller; anything beyond that is a violation and it could get you in trouble. Constantly review best practices to test, review and optimize your seller account to avoid policy violations or your account may not be optimized.
2. Check the goods before paying 70% to the supplier
Amazon sellers order their products from different suppliers, but most of them want to save on manufacturing costs but still get quality products.
Ordering from a supplier you don't know or have never met can be intimidating because you're handing them a fortune in the hope that they'll make what you want in the right specs and quality.
Many failed Amazon sellers have to learn the hard way, especially when suppliers don't meet quality and specifications, which can lead to bad reviews or returns on Amazon, as well as poor sales.
When this happens, it can take a long time for you to sell your SKUs at breakeven and ultimately kill your successful product.
The right thing to do: Check the goods before paying the supplier 70% because they could have used cheaper materials or made concessions in some way to save on production costs.
3. Choose the right product
This is probably the most important part of your Amazon seller business and account setup. If you choose the wrong product, no matter how good your marketing, PPC and other sales are, you will fail miserably.
The Right Way: When conducting product research, there are several factors to consider, such as product demand, profit margins, ease of manufacturing, level of competition, and more. If you stick to these requirements and don't try to make difficult products, especially as a novice seller, you'll have a higher chance of success.
You also want to be free from Amazon categories as much as possible. Even if you have no plans to sell there immediately, you may want to sell in this product category in the future.
4. Obtain product packaging and branding rights
There are many stories of customs seizures of Amazon sellers' merchandise shipped to different customers in different parts of the country for a variety of reasons. It could be a small mistake, like forgetting to check the product's age or target market requirements, and not properly labeling the item.
This can be devastating, especially if all your cargo is seized at the port and you can't get it back or sell it, so you end up taking huge losses and stopping selling altogether.
The Right Way: Make sure your shipments are properly packaged and labeled before shipping.
5. Invest in quality customer service
Customer service is one of Amazon's top priorities, so you shouldn't skimp on it. In fact, to some extent, customer service affects Amazon search page visibility, Amazon buy box share, and Amazon sales.
Some of the biggest mistakes Amazon sellers make when it comes to ecommerce customer service include shipping speed, return policies, reviews, and pricing.
However, the most common mistakes include playing with the system by paying for positive reviews because Amazon relies heavily on user trust, arguing or getting angry with shoppers, or thinking they read your policies thoroughly.
The right course of action: While there are several solutions to these problems, the first is to invest in resources to improve customer service metrics and improve your seller feedback management.
There are many lessons to be learned, but these are just a few of the main ones that can make or break your Amazon selling business.
The golden rule is simple: the customer is king. As cliché as it sounds, Amazon sticks to this rule, so you have to embrace the same mindset to make it work for your own business .