Amazon FBA is a fantastic tool for small businesses and entrepreneurs who want to start selling big quantities of products to customers directly. This service simplifies things to the point that you can start a thriving business without ever seeing the product! But that is also a problem. In many ways, Amazon FBA makes starting a business far too simple. As a result, it’s easy to make mistakes and get trapped. Here are five major ones to stay away from.
1. Failing to Read the Requirements
Did you realise that Amazon requires you to wrap your purchases when they arrive? That they must already have a barcode? Do you know which products Amazon will not accept, or do you require them to first verify their suitability?
In that scenario, as an Amazon FBA reseller, you haven’t done your homework! These are important requirements, and there are no ifs or buts — if your goods does not match Amazon’s requirements, it will be returned, costing you a lot of money.
Make sure you read through this portion of the site thoroughly, and then double-check with the manufacturers you’re dealing with to make sure they can meet those requirements. Will they, for example, be able to package your products in some way? (I’ll go into more detail about this later.)
There are a few things you’ll have to accomplish on your own, such as buying a barcode. All of this is explained in-depth in the whole ebook, so read it carefully and don’t skip any important parts.
You should also make sure you understand all of Amazon’s pricing, storage periods, the advantages and disadvantages of various types of membership accounts, and so on. This will allow you to more precisely determine the profit you can make from selling a specific product at a specific price, allowing you to make more informed decisions.
2. Forgetting Returns
One of the most-common mistake made by resellers, Amazon FBA sellers, and other businesses selling products is failing to recognise the potential cost of returns.
You may have spent a long time calculating your profit per unit. Perhaps you calculated the cost per unit you’d pay the manufacturer, freight forwarding costs, and carrier costs…
However, you overlooked the fact that some consumers want refunds. And you’ll almost always have to pay for shipping of the returned item if they do that. This can be costly.
Depending on your niche/industry, refunds can be much more of a problem. Clothing retailers, for example, will deal with returns more than most, because many consumers may order garments, discover they don’t fit, and return them. Many resellers have gone out of business as a result of this.
Your task now is to consider not only this while estimating your prospective profits, but also to come up with the solutions to the problem. Which items of clothes have the lowest return rate? What can you do to make it as clear as possible what your things look like when they’re worn? What is your return policy like?
3. Dealing with Un-happy Customers the Wrong Way
When dealing with angry consumers, one of the most common mistakes vendors make is acting unprofessionally. As we expand our operations, it’s easy to lose sight of the fact that our clients are individuals, and to forget to ensure that each of them has the finest possible experience.
What happens if someone complains? We often dismiss it, yet one dissatisfied consumer can cause a lot of damage. That’s one disgruntled consumer who won’t buy from you again…
…one disgruntled client who can write such a negative review that others begin to prefer your competitors’ items over yours… even if they are more expensive!
…one angry customer who can swiftly spread the word and turn a thousand people against your service. It’s frequently the failure to remember these minor issues, rather than failing to have an end-game in sight, that leads to the major issues that wreak havoc on a company’s operations. a company.
So, what can you do about that irritated customer? First and foremost, make sure you’re paying attention to your inbox and keeping an eye out for complaints. If your firm is large, you should consider establishing a “complaints department” that can handle these on your behalf and be available twenty-four hours a day, seven days a week to respond to inquiries and complaints (but don’t make the process too complex).
Also, make it a point to deal with difficulties personally, and make it your responsibility to guarantee that all unsatisfied clients are adequately reimbursed for any lost time or money. This could entail mailing them something for free or giving them a discount, and an apology never hurts. Once your consumer has been handled with, they are less likely to disseminate negative information about your organisation and may even think of you more favourably than they did before the incident. In any business, mistakes are unavoidable; how you handle them will define you in the eyes of your consumers and clients.
However, after you’ve identified a disgruntled customer, there’s more you should do. If they’re upset, there’s a cause for it. Find out what they don’t like about it – it could be that it didn’t come on time or was damaged. Maybe it got misplaced in the mail? It’s your job in either case, and if you don’t address the source of the problem, it’ll only lead to the more problems in the future – attack every problem at its source. So, file this complaint and keep an eye out for further incidents, as well as any previous complaints – they’re the best form of market research, and they’re entirely free (make sure you are not going to delete them ever).
Consider this complaint as free feedback and market research that you can use to enhance your business and prevent problems in the future!
4. Getting Packaging Wrong
Your items will be packaged in two ways: the envelope or parcel in which they will be dispatched – which Amazon will handle – and the box or bag within that outer wrapping.
Your things will be packaged in two ways: the envelope or parcel they will be sent in – which Amazon will manage – and the box or bag they will be within within that outer wrapping.
And, in fact, the latter option may be as as crucial, if not more so, than the former. This is your ONE chance to make a lasting impact as a brand, to distinguish your goods from the numerous others. Furthermore, it will assist your goods in remaining intact throughout the many stages of its travel.
When working with a manufacturer, they will often give very basic packaging in the form of a plain box or a transparent bag. You can use a third-party packaging contractor to provide better packaging if you want to. This is something we strongly advise you to do!
Consider some of the blunders that can arise when it comes to this other part of packaging.
Mistake 1: Packing too Loosely
When you have a large box and package with a small object hidden inside, you end up packing too loosely. The problem is that it’s all too simple for that item to roll or slide around inside the packaging, causing it to slam against the walls and take a battering. If you want to keep your object safe, you should pad it or find another means to secure it. Even if Amazon wraps a box with excellent wrapping around a box that is excessively loose, your item will still be damaged!
Mistake 2: Packing too Tightly
You might not believe packing too tightly might be a problem, but it can cause problems just as much as packing too loosely. This is because cramming items in tightly might put pressure on them, making spindly portions more liable to snap. At the same time, packed tightly means the item will be closer to the surface, making it more easily bashed. If your item isn’t just square or spherical, add padding to the extremities and leave some space around them.
Mistake 3: Using Tough Packaging
In ninety percent of cases, this won’t be an issue, but for those with very fragile products, it’s important to remember that the packing should be less durable than the object itself. When using zip ties to hold objects in place, or when applying stickers on cotton, etc., this is a common mistake. Make sure your item will come out when it arrives at its destination!
Mistake 4: Making the Packaging too Soft
Packaging that is excessively soft is just as awful. This is a particularly serious issue with water-degradable boxes, which can all too easily be dissolved by rain, leaving your valuables susceptible. Make sure your packing is waterproof if your item isn’t.
Mistake 5: Not Marking the Bottom
All breakable packaging with an obvious ‘right side up’ should have that right side up clearly labelled on the top. This prevents carriers from inadvertently turning them upside down and causing harm. Remember that it won’t have any packaging other than yours when it’s kept in Amazon’s warehouses, so include details. This will also make your product more future-proof if you decide to sell it through retailers or other outlets.
Mistake 6: Not Making it Stunning
It’s impossible to exaggerate how important its to have beautiful packaging for your items. Not only that, but also improves the visual appeal of your products in images and marketing materials. It’s inconvenient to have to include yet another party before your products reach your customers, but it’s also not that expensive. And, given how much of a difference it makes in terms of consumer satisfaction and desirability, it’s well worth it.
5. Not Trying the Product
It appears to be a simple mistake, yet it is one that COUNTLESS Amazon FBA firms make. Because you can send your purchases directly to Amazon’s warehouses, you could be tempted to discover something that sounds amazing and have it shipped there without ever trying it. This is, of course, a mistake, as it could indicate that you’ve overlooked vital features or that the thing you’ve chosen is of poor quality.
This can lead to dissatisfied customers, a high number of returns, and big volumes of inventory sitting in Amazon’s warehouses, all of which will cost you money in the long run.
Even if you designed the product yourself, a prototype should be supplied to your home before placing a large purchase. This manner, you can spot design defects and issues that, in the worst-case scenario, could be harmful! It’s easy to assume everything is alright, yet even the most powerful corporations make errors.
If you only remember one thing from this list, make it this: get a product sent to your home to test first. This may be a prototype if you designed the product.
If you avoid these five traps, you’ll be well ahead of the pack and have an excellent chance of building a profitable Amazon FBA business.
If you truly want to be sure you know everything there is to know about Amazon FBA, read the entire ebook Amazon FBA Success. This book walks you through every stage of the process and offers a wealth of useful information, tools, and advice to help you start a modest cash-printing business.