Top 10 Most Common and Expensive Mistakes New Amazon FBA Sellers Make

We’re all humans, and mistakes are a vital part of learning in our lives. However, some mistakes can cost you dearly when it comes to business, especially the world’s largest e-commerce platform Amazon. Mistakes New Amazon FBA Sellers Make.

Both new and old Amazon FBA sellers make mistakes throughout the process. But some tiny mistakes go unnoticed, whereas some critical ones can result in the loss of thousands of dollars or account suspension. 

Keeping that in mind, we’ve prepared a list of the most common mistakes that FBA sellers make and discussed ways to improve your Amazon FBA business. 

#1: Not following the policies

One of the first and most obvious mistakes is about breaking the rules or violating the Amazon terms of service. Amazon is a $1.65 trillion company. They have advanced systems and thousands of employees to police the seller’s behavior and check who is violating the policies. Some new sellers think they can get away with a violation like not using the right fnsku label, but in reality, it would be the most expensive mistake any seller could make, especially in a situation where you have already sent your inventory to the Amazon fulfillment centers.

Because if your Amazon account is suspended or shut down by the company, you are most likely to lose access to all your products that you have stocked in the Amazon fulfillment center alone makes thousands of dollars worth of losses.

#2: Taking competition for granted

No matter if you are a private label seller or doing FBA wholesale on Amazon, you must keep an eye on the competition. Amazon is a largely saturated marketplace where thousands of sellers enter the market every day. Ignoring the competition even for a little time can cost you a lot of customers. This also includes paying attention and changing the pricing, profit margin, and product listings according to your competition and current market trends.

#3: Not evaluating the manufacturer and supplier 

One of the most common mistakes that Amazon FBA sellers make is failing to vet the suppliers and manufacturers. You need to understand that Global suppliers cannot be trusted, especially when you are directly sending your inventory from the supplier to the Amazon fulfillment center. That’s why you should pick a supplier that is reliable, and other businesses are also using that supplier. 

#4: Over ordering of inventory

 

While doing Amazon FBA business, it’s vital to keep the right amount of stock no less no more because over-stocking can cost you a lot in terms of Amazon FBA fees of warehousing. In that case, if there is a lot of unsold inventory and you wish to return all those products to yourself, that would cost you around $0.5 per product. That’s why it’s crucial to keep the right amount of stock in Amazon fulfillment centers to avoid stockout and overstocking costs.

#5: Not using paid advertisement

One of the great features of Amazon in terms of marketing is Amazon pay per click or PPC. Many sellers underestimate the significance of PPC. PPC is the most effective advertising system by which new and all sellers can enhance their product reach, boost their selling potential and get higher rankings.

The best thing about using PPC advertising is that it’s a very cost-effective advertising method in which the seller or the advertiser only has to pay when the user has successfully viewed our click on your product’s ad. 

#6: Not taking professional help

Having an expert on the field by your side increases your chances of success, just like the world’s best soccer players and teams hire coaches to improve their game strategy. Similarly, you should invest in Amazon FBA coaching to get a clearer part, create effective strategies and avoid all the possible mistakes that you could make otherwise. 

#7: Not using FBA label services

Using Amazon FBA label services is a great way to minimize the effort and save time when doing business on Amazon. This service is quite beneficial for the highest scale sellers and those new FBA sellers that have limited resources but good selling strategy and sales potential. Amazon FBA sellers can transfer the responsibility of putting FNSKU labels to your inventory by using this service. So, the sellers can directly send their inventory with just the manufacture label from the supplier to the Amazon fulfillment center. However, this service comes with an additional fee of around $0.03 per barcoded label. 

#8: Lack of reviews plan

Reviews please one of the most important roles in the success of your Amazon store. Around 92% of buyers from Amazon look for positive reviews before making a purchase. That’s why it’s vital to have a review plan for both wholesalers and new sellers when launching a product.

#9: Lack of optimization

Product listing optimization is very important to get organic reach and increase conversions. You can hire an expert are use analytic tools to search the keywords to optimize your product title descriptions, pictures, and prices. 

#10: Not Paying Attention to Customer Service

Good customer support is very important to retain old customers and attract new ones. According to the market studies, 60% of customers prefer good customer support overpaying an extra or expensive price. But, if you’re using Amazon FBA, you don’t have to worry about it as Amazon provides good customer support on behalf of the FBA sellers to the customers. 

Final words:

That was it. There are many other common mistakes that Amazon FBA sellers make, but we tried to cover the most important and expensive ones in this article. Fortunately, many of the mistakes can be eradicated by using Amazon FBA coaching and the right tools.