The Pitfalls of Selling on Amazon

It happens to so many sellers – they conquer the challenges of their new Amazon business, get the hang of the day-to-day business, and then assume that they’ve got everything under control. There is so much to learn and some of the higher-level aspects of selling on Amazon can be overlooked by even the most experienced sellers.

To ensure that your business is working efficiently, you need to keep an eagle eye on the details. Everything from fulfillment issues to operations and of course profitability needs to be considered and optimized. If you keep striving for improvement, your business will flourish and so will your profits.

Common Mistakes Even the Pros Make

To help you make sure that your business is running smoothly (and making money), I’ve put together a list of common mistakes that any Amazon seller could make. It doesn’t matter if you’re new to the business or you’ve been doing it for years – mistakes can happen, and things can get overlooked.

Profitability

Don’t get lost in the number of units going out the door. The fact is that you are in this business to make money. Keep an eye on your overall bottom line and make sure it is where you want it to be. Selling a lot of units alone won’t make you money if your other costs are high.

Fulfillment by Amazon Problems

Do not overlook mistakes that may come up when you use Fulfillment by Amazon (FBA) like SKU issues or sticker problems. These might seem small in your overall business plan, but problems with labelling, repackaging, returns, and co-mingled SKUs can cause some huge headaches for your business. Not paying close attention to FBA can result in lowered profits or, at worst, a suspension of your seller account.

Taxes

Many sellers assume that Amazon takes care of the state sales taxes for them, but that is not the case. You can ask Amazon to collect the tax, but you are ultimately responsible for remitting that tax appropriately. Neglecting taxes can become a huge problem for your business and for you personally.

Listing Optimization

Make sure your listings are being found by as many customers as possible. Many sellers assume that their visibility is fine if they are receiving orders, but improvements are usually possible. Pulling your category listing reports quarterly, updating your product pages, and using sponsored product ad campaign reports can help you to improve your sales.

Day-to-Day Operations

The day-to-day operations of any business can become routine because it takes up so much of your time. Even experienced sellers get complacent and forget that there are opportunities to streamline, reduce unneeded costs, and increase profits by tweaking these daily tasks.

The Bottom Line

In the end, it is the bottom line that matters. Are you making enough money to justify your effort? Keeping a close eye on the small details without losing focus on your long-term goals is a balance that most business-owners have to work at.

Click here to learn more.

Carlos Alvarez

Alvarez sums up his mission to help online sellers with a quote he heard early on in his career. New sellers constantly compare their Chapter 1 to another seller’s Chapter 20. They see what other veteran sellers are doing and they judge their success and failures by this benchmark. His goal is to show sellers a realistic path to success, and how they can enjoy every chapter of their own, unique journey.

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