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6 Common Mistakes of New Amazon Sellers

Amazon offers many millions of buyers almost worldwide that visit the website daily. At the same time, the company built a comfortable home for a few thousand hundred sellers. For instance, every year more than 100000 salespersons try to launch their online businesses through Amazon. Sadly enough, a significant fraction of them leaves the marketplace during the next half a year. The reasons are naturally different, but most of the problems can be easily avoided upon certain considerations and analysis.

This brief but informative article will help you to understand the many standard difficulties which are faced by sellers daily. We do hope that such knowledge will assist our readers in enhancing their sustainability at the Amazon marketplace and increasing their performance and profits gained.

Caution 1: Never List Wrong Inventory Quantities and Product Prices

When some seller creates a new product page at the Amazon website, the pricing and inventory quantities appear online almost with no further delay. Visitors are, therefore, able to see and buy them fairly immediately.

Amazon does not provide a “sandbox” to practice sellers’ product listing skills. Thus, you are forced to get started from scratch and often learn the art of successful sales at your own mistakes.

We advise that if you have no inventory at the moment, simply indicate zero in the respective field. Alternatively, if you do have extra goods available, do not overstate your quantity. It is a fairly common situation when a novice seller does not realistically estimate how quickly their items can be sold. If you have active Amazon orders while your inventory is empty, it can end up with serious problems up to account termination.

Avoid listing unrealistically low prices, unless you are ready to sell out all your inventory at them. If an Amazon seller states an unbeatable deal just to attract first visitors, all such goods can get sold in a few hours. As a result, huge unexpected losses are possible.

Caution 2: Take Care of New Product Descriptions

Be particularly attentive with the description of the new products that you offer. It is your responsibility to double-check that your text exactly reflects parameters of your goods, including color, size, weight. If a dissatisfied customer complains, your seller performance will suffer, whereas your merchant account is likely to be temporarily blocked for not properly matching descriptions.

Even if an item matches an existing UPC number, you still have to ensure that original data is perfectly true.

Caution 3: Always Remember about Collecting Appropriate Sales Taxes

This issue is very important in America, otherwise, you may ultimately need to pay all that missing money from the own pocket. At an affordable fee, Amazon offers its merchants the service of specifying correct tax settings. As early as you sign up for an account, fill out “Tax Settings” in Seller Central. That way, you will avoid any unpleasant tax surprises at the end of the year. It is the seller who is legally responsible for remitting all corresponding sales tax payments.

Caution 4: Gather Customer Feedback as Fast as You Can

Amazon’s seller policing department, Seller Performance, and Product Quality services routinely assist every seller in obtaining customer feedback for their every sale. There are quite a few parameters that are automatically monitored. It is not only the number of stars received but also the percentage of feedback related to the total number of orders shipped. A good result in most categories of goods is considered to be 2-5% of customer evaluations. It does not make any difference whether you are a new salesperson or an experienced vendor. You are all exactly equal for the Amazon algorithms.

Never forget to monitor the quality of the feedback. Critically analyze and apply thoughtful changes to your business if you receive a significant fraction of negative feedback.

Caution 5: Work with Customer Inquiries Quickly

The system works in the following way. Every seller has 24 hours to respond to the received inquiry. That being said, the time and date, holidays, local perturbations do not completely matter. If you provide late responses, the Amazon algorithm will not definitely like you. Ultimately, your account may just get suspended for poor performance. To deal with this challenge, take a look at an external software provider, such as ReplyManager. Robots offer high-quality assistance that works out in many cases. It is, of course, solely up to you to find out how to organize efficient and profitable communications with potential customers.

Caution 6: Avoid Fulfillment Errors

For newcomers, it is extremely easy to make a silly mistake at Amazon. For instance, the most common problems that we know about include late shipping, absence of tracking information, and order cancellation because of the poor available inventory. If you do not arrange for a perfect command of the fulfillment of your orders from the very beginning, you will have certain problems in further development at Amazon.

The first ten orders are particularly important. You must do your best to fulfill them ​just perfectly. Some salespersons can consider moving all inventory to Amazon’s Fulfillment by Amazon program. This ensures that all your orders are sent out on time, with tracking numbers, while the inventory always remains in stock.