Amazon FBA, or Fulfillment By Amazon, is a one-of-a-kind opportunity for people to sell their products online by creating a brand and FBA business on Amazon. Amazon dominates the world of e-commerce, leading in customer satisfaction, earnings, online traffic and innovation. Selling FBA products on Amazon is a great way to earn additional income, or it can be a one-way ticket to a career full of freedom and high profit margins.
Before getting started, it’s important to be well informed about the rules and regulations, expenses and fees, as well as the products and competition that exists on the Amazon platform. Some of the most common mistakes made by new sellers are also the most expensive ones, which ultimately are the most damaging. In this blog post, Black Caiman Media will detail some of the most common mistakes that new sellers make, why these mistakes are critical and how to avoid making them. Keep reading for the inside scoop on what mistakes you must avoid when building your brand and launching products on Amazon.
In most cases, avoid following trend products.
People love to follow the crowd, but when it comes to chasing after trends in the market as a new seller, it’s best to look the other direction. More often than not, a product that spikes into popularity and demand is only profitable to the sellers who saw the opportunity before it happened. Joining a market that has already become quickly saturated oftentimes leads to pricing wars with competition, thus limiting profit margins and sales potential. This may also force you into a position where you’re selling below cost, therefore causing you to lose money rather than gain. In sum, its best to avoid joining a trend market. Instead, find a niche product that sits in a unique space where the demand is substantial, yet ultimately unmet due to non-existent or weak competition.
It’s usually best to avoid selling products you’re passionate about.
It may seem odd to advise against selling a product you’re passionate about, considering that you are likely to be knowledgeable about it and more motivated. However, this is not usually the case. Selling a product you’re passionate about can cause you to make decisions based on your own understanding and judgement of the product. Mistakes in pricing, emotional attachment and inability to bail out if the product isn’t selling are all issues that may arise from making a passion project out of Amazon FBA. Instead of selling a product that you love, sell a product that meets standards of conversions, niche, weight, size, demand, and feasibility. Conduct product research so that you understand it and keep your eye on the prize rather than tie yourself emotionally to the product for the best end result.
Avoid sourcing low quality products.
A product with extremely low manufacturing costs may seem attractive, but low cost goes hand-in-hand with lower quality. Do not sacrifice quality for a lower cost per unit! The best way to avoid ordering poor quality goods is to ensure that you communicate clearly with your manufacturer and ask them about the specifications of the product, with images to validate it. Furthermore, you should always order a sample product so that you can check the quality of the item before going through with a high-volume order. If you fail to confirm your products’ quality and end up selling something that is subpar, it will without a doubt be reflected in your reviews. Amazon reviews are extremely important to your listing health and conversion rates, and an accumulation of negative reviews can doom your listing. With that being said, make sure that you are selling a high quality product.
Avoid rushing through the listing creation process.
At this point, you’ve taken the time to research, source and establish the pricing and profitability of your product. Enticing as it may sound to floor the gas and finally get your product launched and selling, it is worth your time to put effort and energy into setting up your product listing properly. Your listing includes images, a title, bullet points, a product description and may also include A+ Content/Enhanced Brand Content. All of these listing elements can either capture a customer or deter them, as well as establish your brand reputation. With that being said, it’s important to create a strong listing. Perform extensive keyword research for the copy of your listing, utilize high-quality photography for your product images, and write strong, persuasive bullet points. A well put together listing will ultimately lead to higher sales and a credible brand presence, so don’t rush through the listing creation process!