7 Mistakes You Never Want To Make
This guide presents our personal insights based on the real experience our team has been getting for the past 3 years of selling on Amazon. We hope you will like and find it useful. If you ever started your own business, then of course you know that it is not easy. Amazon is no exception. Product launch can be either successful or become a fail. Hopefully you will be among the successful sellers.
Mistake #1. Wrong product selection
No matter how high the quality of your product and how well it is sold in your country, it can get stuck in the warehouse if there is not enough demand for it on Amazon. Therefore, when choosing a product to sell, it is necessary to take a variety of factors into account. The US market, for example, and this is quite logical, is significantly different from our markets. Other consumers’ needs and lifestyle, level of purchasing power, competition, price policy, the seasonality of demand, and some others. This all needs to be taken into account. You will say: “This is understandable” but as practice shows, not all and not always.
Mistake #2 Inattention to details
When doing business on Amazon you need to pay attention to many small things. It’s not enough to just deliver goods to Amazon’s warehouse, make a listing with homemade photos, relax and wait for a wonderful time to begin when your product is sold out by itself, and you’ll get rich (incredibly, but that’s how many entrepreneurs see business on Amazon). As a result of ignoring the details, the health of the seller account suffers, the product’s rating and ranking go down. Track the indicator of your Account Health and see how well you perform his seller duties. Account Health analyzes several indicators that ideally should be displayed in green.
What you should do to perform well is to constantly monitor your competitors, reviews you get, to track and index your keywords and optimize the listing when needed.
Mistake # 3. Defected products
We recommend to inspect every shipment before sending it to Amazon. This will minimize the risks of receiving negative product reviews and the number of unhappy clients. Also, study your competitors’ reviews both positive and negative. Pay a close attention to the bad ones and try to find out what kind of product disadvantages and weaknesses your competitor has. Then you will be able to draw the manufacturer’s attention to those moments and even modify a product and stand out from the competition in your niche. Also, you can order the best-selling competitor’s merchandise to understand the quality of the product you need to achieve. Mistake #4: Lack of SEO Optimization
90% of sales are converted from the listings displayed on the first page by a specific keyword search request by the potential customer. In order to be on the 1st page, you need to set up the SEO listing parameters. This is done by selecting the most relevant top and long-tail keywords and filling them in the front-end (tittle, bullet points, product description) and back-end (search terms) of the listing. That is why SEO optimization is one of the most crucial parts of the seller’s success. To understand how to do the SEO part, you’ll have to understand how the Amazon’s search algorithm works. This algorithm is called A9.
Mistake #5: Poor advertising
Imagine that you launched your product on Amazon and created a contextual advertising on the site (PPC). You spent some money and, of course, you expect payback immediately. However, the results are not so good, since advertising campaign is not yet optimized. In the end, the seller decides that advertising “eats all the profits” and it “does not work” and business on Amazon, too.
In order for PPC to pay off and bring profit with minimum ACOS, it must be set up properly by a professional who knows how to divide ads, filter out “profitable” words, add negative keywords, adjust bids and track its statistics. The goal of the first launch of advertising is always to collect data and statistics for your product. Do not expect an instant result and drop your hands if you do not receive it. We are not tired of repeating that Amazon is a business in which you must work hard to achieve success, as in any other businesses.
Mistake #6. Amazon sanctions or account suspension
You need to have a serious reason for your seller account to be suspended by Amazon. Quite often that happens if the company’s policy and rules which are clearly regulated and publicly available were violated because the seller simply did not know (or did not find out) about. Typically, the Seller Performance Team – a department that deals with different issues sellers face to – first sends a notification to your email. In this case, the seller has several days left to acknowledge his mistake and correct the situation. If this does not happen, there is a suspension of the listing or, worse, of the seller’s account, and to get everything back, it will take a lot of effort for the seller.
The reasons for suspension
• Product does not meet the description
• Review manipulation
• Fake purchases
• Systematic violation of Amazon’s rules and policies
• High product defect rate
• Unauthentic violation
Ideally, before starting to trade on Amazon (or any other site), the seller must go through the rules thoroughly. In addition, the seller is required to regularly monitor the updates of general rules, changes in categories, in the site’s policy and to keep abreast of the latest developments. Obviously, not everyone has time and energy to monitor the news, latest changes and understand what it all means and how to react to the new rules of the game.
Mistake #7: High ambitions, little knowledge
The basic mistake perhaps of any newbie who wants to earn money is an excessive self-confidence which will play a cruel joke with him/her for sure unless they are backed up by experience and necessary information. Business on Amazon is no exception. No matter how many articles and forums you read, surprises may still occur. Often they are not nice at all. And it is better to understand this in advance, being ready to face unexpected difficulties. Otherwise, you may suddenly discover you are in minus after the sale of the first shipment.
When you sell the product for the first or for the 10th time, calculate everything in advance or let the experienced seller expert do that for you.
Do not allow undue confidence to take everything for granted.