6 Amazon FBA Mistakes You Must Avoid
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 six major ones to stay away from.
1. Failure to Read the Requirements
Did you realize that Amazon requires you to wrap your purchases when they arrive? That they must already have a barcode attached?
Do you know which products Amazon will not accept, or do you require them to assess them first?
No?
In that scenario, as an Amazon FBA reseller, you haven't done your homework! These are critical requirements with no ifs or buts: if your goods do 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 article, so read it carefully and don't skip any important parts.
You should also make sure you're familiar with all of Amazon's pricing, storage periods, the benefits and drawbacks of various sorts 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 About Refunds.
One of the most common mistakes made by resellers, Amazon FBA sellers, and other businesses selling products is failing to recognize the potential cost of returns.
You may have spent a long time estimating your profits per unit. Perhaps you calculated the cost per item you'd pay the manufacturer, freight forwarding costs, carrier costs...
However, you overlooked the fact that some consumers want refunds. When they do that, you'll almost always have to pay for the delivery of the returned item as well. 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.
Then it's up to you to not only account for this while estimating your prospective profits but also to come up with solutions to the problem. Which apparel goods have the lowest return rate? What can you do to make it as clear as possible what your things will appear like when they're worn? What's your return policy like?
3. The Wrong Approach to Unhappy Customers.
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 frequently dismiss it or simply ignore it.
However, 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 insight, 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 organization and may even think of you more favorably 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 because it didn't come on time or was damaged. Maybe it got misplaced in the mail? In any case, it's your job, and failing to address the source of the problem will simply result in additional occurrences in the future - fight 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 never delete them).
Consider this complaint as free feedback and market research that you can use to enhance your business and prevent problems in the future!
4. Using the Wrong Packaging.
You may be asking how packaging relates to an Amazon FBA business. Isn't the whole point of FBA that you don't have to deal with packaging? Isn't this exactly what Amazon does for you?
Yes, but only to a certain extent.
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 that outer wrapping.
That latter option, in fact, can be just as significant, if not more so. 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 their 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 the packaging.
- Packing too loosely. When you have a large box or 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 thing safe, you'll have to pay for it or find another way 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!
- 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.
- Using Durable 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, for example, this is a common mistake. Make sure your item will come out when it arrives at its destination!
- Over-softening the packaging. 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.
- Failure to Mark the Bottom All breakable packaging with an obvious 'right side up' should have that right side up clearly labeled on the top. This prevents carriers from inadvertently turning them upside down and causing harm. Remember that it will not have any packaging other than yours when it is held 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.
5-Failing to Make It Stunning.
It's impossible to exaggerate how important it is 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.
6. Failure to Try 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.
Of course, this is a problem because it could imply that you overlook essential features or that the thing you choose 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. In this manner, you can spot design defects and issues that, in the worst-case scenario, could be harmful! It's easy to believe everything is in order, yet even the most powerful corporations make mistakes.
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 mistakes, you'll be well ahead of the pack and have a great chance of building a highly successful Amazon FBA business.
Great Blog. Thanks for sharing significant steps. This blog helped me a lot. I used a service of Amazon FBA Business, providing secure service and briefly explaining everything to the consumer about the mistakes to avoid.
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