Amazon FBA presents a great opportunity for everyone looking for a low entry barrier to start a business venture. All you need to do is to find a product in huge demand, list it on Amazon – You WILL eventually sell because you get access to Amazon’s vast network of customers and it will be a matter of days before you start seeing growth.
However, we see many business ventures fail every year. It is because, any business platform that poses low entry barriers, there will be tough competition. Amazon is also home to an ocean of “me too” sellers. Let’s examine errors that can reallyhurt your business. You might not be able to avoid all the pitfalls, but with a bit of planning after reading this post, you can try to mitigate effects on your business.
Do Your Home Work – RESEARCH
Don’t just get impressed by online stories of earning hundreds of dollars but think about all the possibilities and think several steps down the line. Research your niche using an Amazon Sales Tool, look at sales volumes, and work out margins that these sellers are working on. Remember to factor in FBA costs, product costs and shipping costs. Selling 1000 of something with a dollar margin, or 100 of something with 10 dollar margin is really different.
Learn to Rank Product Listing
If you have launched your product on Amazon but are still unable to get response, the problem may lie with your product listing. It may fail to stir excitement amongst audience. May be the images are of bad quality. The product description failed to prove the point. The users do not find the title relevant. You may not use relevant keywords. Optimize your keywords! Whatever the reason is – try to find it out and fix it before it becomes blunder.
Compare your product listing with your competitor and pinpoint the flaw. Take help from experts. Use a tool like Zontrack to maximize your listings and stay on top of them. Making subtle changes to your listing, testing different pictures can all elevate your product’s visibility. Do whatever it takes to make product listing more engaging and exciting.
Learn to Execute Business Plan
There are numerous business models you can adopt for Amazon FBA such as private labeling, product bundles, selling brands, and more. Any of these plans can work only in case of developing and presenting it in the right manner.
Mostly, newbie sellers fail because they do not take all the costs into account that goes into selling their products on Amazon network. Have you considered Amazon fees, actual cost of the product, shipping cost and the costs required to run the e-commerce business smoothly? If not, how will margin work out in the end? Know your numbers before listing your product.
Numerous business ventures fail, often in a year. You cannot block all the ways that can lead you to failure, but you can learn from experts and put steps in the right places to mitigate those factors. Moreover, incorporate an Amazon seller tool to understand all the hidden tactics to be a successful Amazon seller.