• How To Avoid Making New Seller Mistakes On Amazon

    Starting a new business and introducing a new product is exciting. The process from its conception to its unveiling is a huge venture, so congratulations if you are already there! All of those late nights, pounding coffee, going through the steps from research to production, has paid off. So, you don’t want to have come this far to suddenly fail because you made these common new seller mistakes. 

    If you’re reading this, it probably means you have taken the initiative to sell your product on Amazon – a wise choice, seeing as Amazon is the largest marketplace available in the U.S. and other countries, raking in a whopping 25.4 billion dollars in 2017 in The United States alone. However, entrepreneurs may accidentally jeopardize their success by cutting corners.

    THINKING HAVING A POPULAR PRODUCT AUTOMATICALLY EQUATES TO MORE SALES 

    Whether you decided to resell an item or you’ve created your own product similar to something that already exists, we encourage you to reconsider going after the most popular selling products on Amazon. This is particularly true if the “must-have” product at the time is probably not going to have a long shelf-life.

    It’s natural to assume that imitating the most coveted and sought-after items on the marketplace is a surefire way to make instant profits. However, that’s not always the case. 

    Amazon New Seller Mistakes
    Not only do you not want to compete with a product like this, it probably is a novelty that won’t be able to sustain continual sales over a long period of time

    For starters, if the product is popular then the market is going to already be saturated with variations of it. Based on the natural self-correction of the free-market, these sellers are going to have to lower their prices to try and compete with cheaper knock-off brands that are bound to follow suit. So, you now have a product that is everywhere and you need to price your item low enough to compete with the big dogs but high enough to still maintain a good profit margin.

    This doesn’t mean you can’t be successful with a popular item – plenty of people have enjoyed positive results with this business model. Just be prepared for serious competition and probably dropping a significant amount of money to try and get on the first few pages of Amazon. Also, ask yourself if this item is something that will A) always be needed, regardless of the volatility of the market and B) is unique enough that it will stand out from all the products competing in that niche. If that answer is yes, it’s more likely it will be a sustainable business. 

    NOT KNOWING YOUR AUDIENCE

    There are a lot of international sellers that have products on Amazon. In fact, a large portion of our business at Markethustl comes from overseas sellers that are selling on the U.S. Amazon platform. Why? Because no other country comes close to making the sales on Amazon that The United States does. 

    If you are an international seller who wants to push products in the United States, you need to understand the American market. We cannot emphasize enough how many international sellers pick products based on what they think Americans want as opposed to what they actually want. 

    This isn’t crucial just for supply-and-demand; it’s also important to know the dialect of other countries for keyword optimization.

    Amazon New Seller Mistakes
    “It’s beautiful out here. If only I knew if I was holding a mug, a coffee cup, a thermos, or a tumbler?”

    For example, a lot of other countries refer to coffee mugs as “tumblers” but that isn’t an incredibly common term in the states. So, when you write a listing, it’s okay to use the word “tumbler” but don’t expect many Americans to be looking specifically for tumblers. You’ll probably convert better for words like “coffee mug” or “coffee cup” or “thermos.”

    Knowing your audience also means not targeting too broad of a clientele. If you try to target too many people in hopes of getting more sales, it might have the opposite effect. For example, plenty of men use face products, but if you are selling a product to help improve a youthful appearance that reduces wrinkles, there’s a good chance more women will be buying your product than men. Thus, your content, keywords, and photos probably should be geared toward women.

    Knowing who needs your product and how they’ll be looking for it is critical for conversions.

    NOT HAVING ENOUGH INVENTORY

    We get it. Staring a new business can be just as nerve-wracking as it is exciting, particularly since you have no idea if it’ll be a hit. Because of this trepidation, many new seller mistakes are made by not ordering enough inventory to meet the demands of the market. This is particularly true if you are trying to rank for a popular keyword where you’re competitors are selling thousands of units. If you don’t purchase enough inventory, you are going to regret it. You need inventory for discounted promotions; you need inventory to fulfill orders. If your product starts taking off and you run out of stock, there is no quicker way to kill a business than not being able to fulfill orders quickly and efficiently. 

    NOT UTILIZING YOUR RESOURCES

    Stop wasting time handing out promo codes. Stop spending money on storage space and fulfilling orders and dealing with returns and angry customers. Every second you dedicate to these backend details is valuable time lost building your brand.

    Your efforts are better funneled into working on marketing, branding, and promotions. Hire professionals to help with keyword optimization, photography, and campaigns. Use FBA to do the backend, laborious responsibilities like getting your product from A to B with no damage or problems. Hire a company to deal with customer support, bad reviews, and complaints. 

    Amazon New Seller Mistakes
    If you can delegate work, do it.

    In other words, it’s worth spending the money to have professionals ensure smooth operations. It will be exponentially better for you business in the long run because you’ll have a better product, better customer service, and happier clients. This translates to success. 

    UNDERESTIMATING THE POWER OF A SOCIAL MEDIA PRESENCE AND PERSONAL WEBSITE

     

    If you don’t have a storefront, website, or social media accounts for your business, you should consider it. Social media has a strong hold on most consumers and can elicit intrigue and interest in your product, provided your accounts are managed correctly. A social media presence can drive potential buyers to your website or Amazon listing, converting interest into action. 

    It also gives you more of a voice to your brand. Amazon doesn’t offer a lot of freedom to interact with customers, so being present on social media can make customers feel more connected to you and your brand. 

    Furthermore, if people are willing to share your posts, blogs, and pictures, that’s free advertising for you! 

    THE TAKEAWAY

    Even though the research, production, and finalization of your product might be over, building your business has just begun. While you’re human and mistakes are bound to be made, there are ways to avoid making Amazon new seller mistakes that could jeopardize the direction and success of your brand. Take heed the advice provided because not cutting corners will result in a thriving business.

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