In this post I’ll be covering the 7 primary Amazon selling mistakes that I’m often seeing beginner Amazon sellers make. If you’re new to Amazon, then pay attention! Even if you’re a seasoned veteran, I’m sure you’ll find some value here.
If you’re considering starting the Amazon journey, then it’s wise not to get caught up in the hype and sensationalism. Sure – there’s plenty of upsides of becoming an Amazon seller, but this is a business opportunity not without its challenges.
1. Failing to reinvest profits
Let’s face it: everyone wants the laptop lifestyle nowadays. Plus, plenty of people want it instantly. In fact, Amazon businesses are in high demand right now by corporate executives ready to find more time-freedom in their lives.
Those that are starting out often have the intention to reinvest profits for long-term success, but it doesn’t always work out. Reinvesting profits should be made as a priority if you wish to have any hope in scaling to a full-time income.
2. Failing to complete proper research
There’s 3 groups of people that start the journey. The super conservative types (that are unlikely to ever launch a single product, the realistic types and the ‘charge in immediately’ types. The later is who I’m addressing here primarily.
Proper research is fundamental if you wish to find success on Amazon. You’ll want to evaluate the sales data, potential trademark issues and profit margins. Most importantly, asking yourself if the product(s) within your brand will actually impress customers enough to hit the buy-button.
3. Failing to implement a PPC campaign
I’ll admit for my first ever product, I’ve never instigated a PPC campaign and have found good success. This, today on Amazon, simply isn’t the norm.
Now for my 2nd brand, I’m primarily focused on effective PPC campaigns. In fact, I would recommend for all products, to also have sponsored ads if your margin allows for such.
4. Not being in a Mastermind group
Going solo is a mistake for many people. Sure – I’m one of the very few self-motivated people in the world that can run solo, so my advice here might be seen as an in-congruence of sorts. For many others, I would recommend a Mastermind group.
Having a group that meets weekly (either physically or online) is going to help you stay on track for the long-term. They’ll also share crucial feedback upon products you’re working on, and you can also see what they’re working on.
I should point out that I’m quite the introvert, and as such, aren’t really a ‘people person’ in the real world. You won’t find me down at the local pub for instance. That said, I believe extroverts have the biggest challenges on Amazon (given that it’s a lonely journey) and for those people, a Mastermind group is fundamental to success.
5. Cashflow management and running out of stock
Amazon previously provided some great leeway if you ran out of stock on your product. Today it’s really changed, and being out of stock for more than a week is going to drastically reduce your organic reach.
This is where cash-flow management is fundamental. Before launching more products, check if you’ve got the cash reserves to actually pay your existing inventory demands, especially if you’re approaching Q4.
Ironically, this is one of the few good Amazon selling mistakes that we suffer. The high sell-through rate that the FBA platform provides (based on immense customer volumes) is one that is very favorable.
6. Lack of emphasis on photo quality
Photos are the first thing that customers look at. In fact, you’re primarily judged on the photos, as that’s the closest customers will come to your listing. You’ll really need to focus on having the best photos possible.
I really can’t state the importance here. Gone are the days of ordinary photos. Amazon does expect a very high standard. Yes, you can still create almost world-class photography from home and avoid the high expenses of professional Amazon photography.
7. Being cheap and avoiding education
There is simply no full course on YouTube. In fact, selling on Amazon is an entire process. It simply isn’t just grabbing a product from China and throwing it on to Amazon, despite what the gurus want you to believe.
You’re either going to pay with your time looking at countless confusing free videos online, or pay with your money to do a course. Save yourself the time, and reduce the risk of your capital investment through backing yourself with real education. I don’t care which course you do, just look at the options in my list of Amazon courses available worldwide.
Also, avoid the free groups on Facebook. 97% of people there are total amateurs with clearly no idea. The other 3% are trying to sell you something. There’s a lot of poor advice thrown into these groups.
I have no intention to discourage you with highlighting these Amazon selling mistakes, but instead, show you where others trip over often. In fact, I’m personally guilty of some of these.
There’s other mistakes such as not completing a product inspection before inventory leaves China. Even some total amateurs attempt $5 logos, or prefer ignoring customer service inquiries and generally being lazy as a seller. Those sellers won’t last long, as Amazon isn’t a place for cheap people.
There’s plenty still left on the table for those that wish to dominate. That is, are prepared to take action and hike up the mountain. There literally isn’t anyone that is a 7 or 8 figure Amazon seller who didn’t at first work their backsides off.
I hope that this has both educated and inspired you. Now, please – get out there and make it happen. There is no better time to start an Amazon business than right now!