Amazon FBA can be a fascinating career! You discover new products, begin selling them, and pocket in handsome profit.
Well, you know what they say!
“It’s all fun and games until someone’s loses an eye…”
Or in this case, an Amazon account! Amazon FBA sellers who are new to the platform and are not that experience with Amazon’s policies tend to make very costly mistakes. The good news is that these mistakes can be easily avoided. Which is why we at Got Suspended Clients have decided to talk about them. Because some of these mistakes are not just costly, they can potentially end your career on Amazon by getting your account suspended!
So, let’s talk about some of the biggest (and expensive!) Amazon FBA mistakes FBA sellers make!
1: Not Abiding By Marketplace Rules
This one should be self-explanatory! As an FBA seller, you agree to abide by the Amazon Services Business Solutions Agreement when you start selling on Amazon. Same goes for the Terms of Service. These include pretty much every rule and regulation on the marketplace. Breaking any of them can be a very expensive mistake! As soon as you create your Amazon account, make sure you review all of the marketplace policies and regulations, and keep reviewing them because they might change every now and then!
2: Working With Shady Suppliers
Amazon is very hellbent on making sure that it provides the best customer service possible. And that is not just in terms of customers getting the best service, but also the best products. Working with shady suppliers can be extremely dangerous, because the products you source from them could be fake. On top of that, if a supply is not authorized to sell a specific product, you will get in trouble for listing them on your Amazon account, because you are not buying them from an authorized source. This can potentially cost you thousands of dollars, especially if the brand files a legal complaint against you! Avoid this mistake by working directly with the brands or their authorized supply chains.
3: Not Having Enough Inventory In Stock
You know what customers really hate on Amazon? Ordering something, only to find out that the item will not be delivered because the Amazon seller did not have enough inventory in stock, but had not removed that item from their listing either way. How to avoid this issue? First of all, always monitor your inventory and order more items when you are reaching your stock limit, and if you do reach that limit and cannot supply more inventory, simply close that listing until you are in stock again. Pretty simple, right? Communicating regularly with your supplier can also greatly help you in this aspect.
4: Having Too Much Inventory With Poor Sales
Pro tip: If you are not sure if a product has good sales, do not overstock it! This is especially true for products that have expiration dates. If the sales are bad, the product will stay in Amazon’s warehouses, it will pass the expiration date, and on top of all that, Amazon’s will slap you with fees for keeping it in its warehouse. That will cost you a lot of money! So make sure you spend money or products that sell, so you can get those dollars back with a profit, not a financial disaster! If it’s not profitable, don’t sell it!
5: Not Responding to Customers
Again, we cannot overstate this: Amazon loves its customers. If something goes wrong and you do not respond to your customer inquiries, you will be in big trouble. Of course, under Amazon FBA, Amazon pretty much takes care of the customer service process, but you still need to be vigilant! Why is this issue considering one of the most expensive mistakes? Because Amazon can shut your seller account down as a result, and you might end up losing a lot of money!
We’re almost halfway done, and this is just a fraction of expensive mistakes on Amazon!
5 More Expensive Mistakes Amazon Sellers Make When Selling on Amazon:
6: Reducing Prices for the Sake of Competitive Pricing
Each supply you work with will give you guidelines regarding the price of each product they have. Decrease that price for the sake of more sales and competition, and Amazon’s suspension hounds will be on your back! In fact, Amazon has a fair pricing policy which it strictly upholds, especially in cases of pandemics like the one we have with COVID. In order to avoid this expensive mistake, make sure you review and abide by the MAP policy of each product you sell on Amazon! No amount of sales is worth this costly mistake!
7: Not Using Software, Tools, or Search Engine Optimization
It’s ecommerce, and we’re in the 2020’s! It’s time to optimize your business with the right tools and techniques. Using automation software will make sure everything in your business goes more smoothly, your product rotation works well, and you can focus on your business more carefully! SEO will also help you during product research, making sure you discover new products that are profitable, sell well, and reel in those positive reviews which then convert to dollars! Get with the times, and embrace technology! It might be a bit on the expensive end if you are a new seller, but it sure beats even more expensive mistakes on the platform!
8: Not Using Imagery
This is one of the easiest mistakes to avoid on Amazon! On Amazon, and other ecommerce platforms, images speak a thousand words! If you have poor quality images for the products you sell, it is highly unlikely to get good sales per product. It is common for new sellers to make this mistake, because their budget might be tight. That’s understandable. But, you can find good third party photographers online with affordable rates who can take pro shots of your products and attract a wider customer base!
9: Not Monitoring Your Account Health
Your account health is a dead giveaway of how Amazon FBA sellers perform on the platform. One of the biggest mistakes you can make as an Amazon seller is not monitoring your account health! Make sure it’s always on the green, and the green will flow in! Every successful Amazon FBA seller has a clean account health and the profits to vouch for it!
10: Having Too Many Negative Reviews
Positive reviews attract more customers and increase your sales. Negative feedback can cost you your business. This is a law not just on Amazon, but any marketplace, ecommerce or otherwise. Negative reviews can be triggered by many things! Your Order Defect Rate, for example. If your orders are not shipped out correctly, it can be a draining financial mistake. Make sure you provide excellent customer service!
If you are part of the new sellers joining Amazon as FBA sellers, then following these tips can greatly expedite your business when you start selling on Amazon! Make sure you do not repeat these common mistakes Amazon sellers make on Amazon. Work with the right supplier, vet them, sell the right products, don’t get too competitive, don’t break any policies, and you should be good to go!
If you ever find yourself dealing with an Amazon suspension which could cost you thousands of dollars, reach out to Got Suspended Clients! We’ve reinstated the accounts of many new sellers under Amazon FBA who are now successful on the platform! If you’re an Amazon seller in need, we are here to help!