Top 6 reasons why FBA sellers fail into Amazon business (1)

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Top 6 Reasons Why FBA Sellers Fail Into Amazon
Business
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Amazon, the word is a boon to most of the sellers
while it turns into a nightmare for many sellers.
Specially, fulfillment by Amazon. Today, we will
discuss whats go wrong with FBA sellers that
leads to failure.
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6 Common FBA Mistakes That Leads To Failure
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Wrong Product Launch
Amazon is a wide marketplace and a home to
millions of sellers. It has a huge competition
for best selling items. You need to audit the
Amazon industry in reference to the Amazon
product and its niche. This way you can decide
what to sell on Amazon as a FBA seller. You
should do effective Amazon product research for
FBA. Check product competition, monthly sales
volume, price history, reviews and ratings etc.
Find a product having good sales and average
seller ratings is below 100. This way you should
final a product to launch.
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Misconceptions About Amazon Fulfilled Business
Amazon is a marketplace to sell products. You use
Amazon warehouse to keep your products. It
charges you monthly storage fees (3.90/ cubic
feet). Amazon charge you fulfillment fees to ship
your orders to customer. Amazon charge you
referral fees on every order (15 of the selling
price). Sellers think Amazon FBA incurs order
shipment fees only. But, there are other charges
that I mentioned above. This misconceptions
impact the profit. They experience loss because
they do not count these expenses while
calculating profit.
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Bulk Inventory
Business is a risk and take a risk. Sellers
purchase bulk inventory above thousand units and
send it to Amazon warehouse. But, you should
think of one thing. Amazon provides you platform
and not help you make sales. You need to do
promotions and run PPC to sell. You starting the
business from zero reviews and ratings on a fresh
listing. So, it is advisable to take low risk.
Launch a product with limited stock under 500
units. You can give big order to supplier if the
first inventory makes good sales.
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Investment
The investment you put to sourcing products, you
will need almost same investment for promotion.
PPC, coupon codes, social media ads, and storage
fees etc. Sellers do not keep a same budget as a
backup fund for advertising. They will because of
lack of fund for promotion. You need to keep
paying monthly storage fees to Amazon. In the
end, if you decide to end up the business. You
have two option left either call the inventory at
your home or dispose it through Amazon. For both
services, again you need to pay Amazon to stop
getting charged for storage fees and professional
plan subscription.
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Multiple Product Launch
A new business introduces new opportunities as
well as setbacks. To earn as many money, sellers
often stuck into traps. They launch multiple
products at a time. This leads to failure. A
launch of more than two products will demand
money and time. You need to spend on all products
individually for promotion and advertising. Many
sellers revealed the launch of multiple products
was the reason behind quitting business. Instead
you should keep foot step by step. Let one
product succeed and launch another afterwards.
This way you will have good experience of how
Amazon business works. You will not do the same
mistake that you did with the first product
launch.
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No Product Inspection
You are finding a supplier from Alibaba and
giving him product order. But, is he sending you
legitimate goods of high standards? We order the
suppliers and get inventory shipped to Amazon. We
cannot inspect it. Many times seller face high
return rates that leads to low ranking, poor
review and ratings, and even seller account gets
suspended sometimes. So, before the inventory
shipped from suppliers location, hire a
inspection company and get product audit to
ensure product quality. Get damaged units
replaced within the suppliers city and process
it to freight forwarder to forward the inventory
to Amazon warehouse for selling.
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