3 Common Mistakes Amazon Sellers Make

January 24, 2018

3 Common Mistakes Amazon Sellers MakeThe incredible and continuous growth of Amazon has already made the online retail giant a more valuable company than the combined market capitalization of Walmart, Sears, Target, and even Best Buy. When retail industry analysts discuss Amazon’s acquisition of Whole Foods combined with the opening of its futuristic Amazon Go convenience stores, there is a clear consensus that suggests the company is preparing to become a more dominant retail force than Walmart was in the 20th century.

The current position of Amazon in the retail sector pretty much dictates that e-commerce entrepreneurs take advantage of the business proposition the company offers through its third-party marketplace, the most active online shopping platform in the world. As much as Amazon wishes to make things easy for new sellers to hit the ground running without encountering issues, the open nature of this retail platform will cause some merchants to make common mistakes such as the ones listed below:

  1. Poor Account Management

Sellers who are used to eBay are often dismayed at the number of restrictions they find on the Amazon Marketplace; in other words, they believe that this is a retail platform that is very easy to master. The reality is that selling on Amazon is extremely competitive because the company’s focus on optimizing the customer experience is sometimes detrimental to merchants. Many mistakes commonly made by new sellers are related to account management: trying to sign up for multiple accounts, not paying attention to product listings and trying to direct shoppers to purchase from personal e-commerce platforms may result in suspended accounts.

  1. Not Paying Attention to Logistics

Amazon is known to pamper shoppers with more than product selection and competitive discounts; one of the sheer strengths of the company has been its detailed attention to fulfillment. Amazon Prime subscribers enjoy prompt and speedy delivery of goods, and the company has gone to great lengths to build an impressive logistics network with partners such as UPS, FedEx and the legendary United States Postal Service; in fact, after the 2017 holiday shopping season, President Donald Trump took to Twitter to state his displeasure with the rates that the USPS charges Amazon to deliver purchases. The fact of the matter is that third-party sellers will be held to a high standard of logistics and transportation, and some of the mistakes that sellers make in this regard include:

    • Inaccurate delivery times.
    • Sloppy packaging.
    • Unreasonably high shipping and handling fees.

A good way to avoid making logistics mistakes is to take advantage of the Fulfillment by Amazon (FBA) centers, which collect a very reasonable rate and do a great job of taking care of shipping and handling. Sellers who want to get positive customer reviews soon after joining the Amazon Marketplace should strongly consider going the FBA route.

  1. Failing to Protect New ASINs

Manufacturers and white label distributors whose products are unique in the marketplace will be required to generate new Amazon Standard Identification Numbers (ASIN). If left unprotected, these product listings may soon be targeted by counterfeiters and unauthorized sellers. The mistake new sellers make in this regard is to assume Amazon will automatically protect their branded products.

Now You Know!

In the marketplace, ASIN protection is something that sellers must manage on their own; those who generate 10 or more new ASINs will benefit from the real-time sales monitoring service provided by Brandlox on a subscription basis. If you are an inventor, exclusive distributor, or manufacturer, we encourage you to contact our e-commerce consultants to learn more about ASIN protection. Call us at 866-848-6072 or email us a question today!

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