Amazon has taken over the e-commerce business as the go-to platform for many sellers. The platform is user-friendly and easy to navigate and attracts over 200 million customers worldwide. However, Amazon can lead to huge seller losses without careful consideration and planning. Here are the biggest mistakes Amazon sellers make and how to avoid them.
Neglecting Product Research
Amazon sellers' first and biggest mistake is not conducting proper product research. Before listing a product on Amazon, you must research whether there is a demand for the product you intend to sell. The research will also provide insight into market competition, pricing strategy and help you identify what customers are searching for.
Screenshot/ Amazon | Amazon is now one of the five biggest tech companies in the U.S., operates in 13 countries, and ships worldwide
Not Optimizing Product Listings
A product's title, description, and images are the three most important aspects of an Amazon listing. If sellers fail to optimize their title, they risk losing sales. Your product title should clearly and concisely display the product’s brand, name, and unique features.
The description should inform the customer about what they can expect from the product, its features, and its benefits. Good-quality images increase the chances of customers clicking on your product.
Inadequate Marketing
Marketing is an essential part of selling on Amazon. Simply listing products on Amazon isn't enough to generate sales. Use Amazon's marketing tools, such as sponsored products, sponsored brands, and Amazon Advertising, to increase visibility and drive sales. Consider using social media and other channels to promote products outside of Amazon.
Zac Freeland/ Vox | Amazon has said it has a zero-tolerance policy toward product review policy violations
Ignoring Product Reviews and Ratings
Reviews and ratings on Amazon affect buyer behavior and ultimately impact sales revenue. Customers are more likely to buy products with high ratings and positive reviews. Sellers should actively engage with customers, encouraging them to leave reviews and respond to negative feedback. Remember, the key is to provide excellent customer service and fix any issues as soon as they arise.
Fulfillment
As an Amazon seller, you can opt for Amazon's fulfillment service that directly manages shipping and customer service. FBA will save you time and money and ensure faster and more efficient shipping. But it comes with fees, and many new sellers fear losing control over inventory and customer satisfaction.
Amazon's fulfillment service is well-managed, allowing you to focus on growing your business. If you want to manage your inventory yourself, consider using reliable third-party courier services and always keep track of your stock.
Ronald Dod/ Pexels | Amazon was worth over $1.105 trillion in 2022
Not Pricing Products Competitively
Pricing your product competitively is crucial to Amazon's success. Many Amazon sellers make the mistake of overpricing their products or setting prices too low, which can result in losing potential customers. To optimize your pricing strategy, research your competitors' pricing while considering your product's unique features and benefits.
Failing to Optimize for Search
Search engine optimization (SEO) is critical for Amazon sellers. Amazon's search algorithm uses keywords, product descriptions, and other factors to determine which products to display in search results. To optimize for search, use relevant keywords in product titles and descriptions, and make sure that listings are complete and accurate.
