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5 Mistakes Newbies Make
- Failure to make product research and test the market: Many of the new sellers failed on their first few orders because of the inability to test the market. Just because there are over 323 million people in the U.S. does not mean your first 500 units of that awesome product will be sold in no time. This business requires research! Your research should show you how many sellers are out there, the rank of the product and more importantly the best quantity range. As a now experienced seller, I recommend you to spend some good number of time in making product research using all the tools you can get ( Junglescout etc) and most importantly test the market with a low quantity of that product (advisable with retail arbitrage).
- Leaving their inventory in auto-pilot: FBA business is not as easy and simple as you may have heard. There are many new sellers every day and there are even many more quantities of your favorite products being pushed to warehouses around the world. You cannot just send your products to Amazon, get approved and start looking for another set of products to source. You have to beat the other sellers by constantly playing with your price and marketing the products in your inventory. Plan to spend at least 5 minutes per day on your inventory depending on your products list.
- Not Following up with reviews: Amazon can only collect reviews for you but not coordinate them for you. You have to take reviews seriously. Reviews will help you tweak your products for your own good. Here are few things reviews will do for you (be on the lookout for my article about How Reviews Can Change Your Profit); reviews will help you change your current product for future improved products (you can derive another product from reviews), great ratings, and most importantly increase your profit. FSM sellers are not excluded from following up. In fact, it is more important for FSM sellers because Amazon will not intervene when things get really bad between your customers and you.
- Not Improving their products: Most newbies are very eager to earn the next quick money in this program at the expense of long-term and consistent money. After your first inventory is gone (I assumed you have very low quantity), take your reviews or your own unit of the product and think of a way to improve the product before you make new orders. An improved product (basically solving hidden problems) will not only yield more customers but ultimately more money.
- Nothing Use Amazon to drive traffic to their site: If you have an e-commerce site where your products can be bought, use Amazon to drive traffic to your site. If you want to decrease the amount Amazon charges, you can use FSM (it depends on the product). This will let you ship products to customers and you can add a coupon and other things that can make the customers come back to see the other products and potentially share your products with friends and family. FSM is not recommended in most cases! Most newbies try to grow their own e-commerce site without leveraging sites like Amazon, Shopify etc.
By: Samuel Owoyemi