Top 5 Mistakes when Selling on Amazon FBA
A business that’s based on Amazon FBA can lead to a great income! As reports suggest, the FBA program has seen constant increases over the years; for example, it had a growth of 65% percent in 2014.
However, while success is definitely at the end of the line, one would have to work hard in order to reach it. In short, you can’t just send a pallet to Amazon and think that the job is as good as done.
There are more than enough businesses that simply fail within months or even weeks after their launch, mainly because those selling on Amazon FBA don’t know how to avoid making the following mistakes.
1. Underestimating Knowledge
Many people that want to become Amazon sellers think that they will have little to nothing to do and that their business will prosper anyway. However, prior to making an Amazon FBA delivery, one must understand that knowledge is power.
You will have to learn everything about restrictions, Amazon categories, certain fees, finding profitable niches, and so on. In short, you have to become an expert when it comes to Amazon FBA even before starting to work with it.
2. Failing to Take Calculated Risks
In short, in order to take calculated risks, you have to be aware of everything that’s going around in terms of Amazon FBA.
You have to know the risks that each category of products comes with, as well as the risks associated with deliveries. For example, you wouldn’t want to have a single truck deliver one or two of your pallets when you can rely on Amazon LTL delivery.
It is recommended that you never take calculated risks when the stakes are too high. If you are trying something new that also comes with a certain degree of risk, it is better if you settle for those things that have low stakes.
3. Not Investing Money
When it comes to services and Amazon FBA, you have a lot of options available. However, many FBA sellers pass on a certain service just because they think it is either too expensive or might have a free or cheaper alternative.
But, if you want your business to be successful, you mustn’t be afraid to invest some of the money you earn in it. Expect to spend money on fees, services, or tools that can help you make more money through Amazon FBA.
It is recommended that you start your business with a mindset of investing money will earn you money in the long run. Smart money makes more money.
4. Proper Data Analysis
This one mistake is quite straightforward. If you make purchases and plan to sell on Amazon FBA by analysing only today’s data (in terms of sales rank and price). You will end up with a full inventory that can be quite difficult to sell.
Purchasing decisions have to be made based on historical sales rank and pricing data. You must rely on trends as little as possible, as they may die in a day or two. Also, if you are at the beginning of your road. You should rely on the products that are known to be in high demand throughout the year. Try using software like Jungle Scout to find opportunities.
5. A One-Man Job
Most sellers think that they can do everything it takes to make their business successful alone. Obviously, this is a mistake! Many aspects required to run an FBA business are in fact, minimum wage jobs.
In short, as your business evolves, you will not be able to fit every needed role. You might want to start outsourcing your: Amazon back end tasks, preparing, packing, and shipping, product repricing, the bulk of OA sourcing, RA sourcing, and your Amazon feedback management.
You do have to work hard, but you have to think smart at the same time. Handle your FBA business in the most effective way possible.
The Bottom Line
These were some basic mistakes that most people that sell on Amazon FBA do. Some may seem like rookie mistakes, we know, but they are true if you don’t want your business to fail.
Finally, you must know and take everything into account when you start selling on Amazon FBA. It is not a simple task, but with the right mindset and knowledge, it gets a lot easier. Good luck from everyone at PalletOnline!March 25, 2019 3:27 pm