Top 6 reasons why FBA sellers fail into Amazon business
Top 6 Reasons Why FBA Sellers
Fail Into Amazon Business
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 what’s
go wrong with FBA sellers that leads to
failure.
6 Common FBA
Mistakes That Leads To
Failure
Wrong Product
Amazon is a wideL maarkuetpnlacce ahnd 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.
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.
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.
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.
Multiple Product
AL naewu bunsinceshs 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.
No Product
IYnou sarep finedincg ta isoupnplier 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 supplier’s location, hire a
inspection company and get product audit to ensure product quality.
Get damaged units replaced within the supplier’s city and process it
to freight forwarder to forward the inventory to Amazon warehouse for
selling.
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THANK YOU!
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