Seven Serious Mistakes Amazon Big Sellers Will Make, Can You Avoid it?
After accumulating some experience, Amazon sellers usually have a basic understanding of the platform sales mode: sell competitive products at a competitive price and try to avoid being suspended in the operation process. However, even the most experienced Amazon sellers may still make some mistakes. In this article, we'll cover some of the mistakes that Amazon sellers often make, even for masters.
1. Ignore the long-term storage costs
Large-scale Amazon sellers may use the FBA from the beginning, but neglected the long-term storage costs, when you have a lot of SKU, you will always ignore some things. However, keeping a close watch on long-term storage costs is crucial, because if you stock large size products in your Amazon warehouse for a long time, the storage fee will cost a lot. If it often happens, over replenishment may be your problem. In addiition, please keep in mind that the cost of FBA will always change, so be sure to keep an eye on the cost of updates.
2. Stick on a product which used to be hot
relying on some of the core products to obtain a stable income is a natural thing, but be sure to regularly check to ensure that the product you rely on to survive still has profit. If you are a seller sell a variety products, you may need to focus on the profitability of different products, then you need to use some automation tools.
3. In the "out of stock" state
When you are out of stock, you will get lose twice: for the first time, when you have no stock, you naturally can not sell, so you lost to your competitors; Second, your Buy Box rankings will also be affected because Amazon considers you are an unreliable seller. Therefore, it is crucial to avoid as much as possible the shortage. You should regularly review historical data and seasonal data to forecast peak demand. In this way, you have better control over your order speed.
4. failed to calculate the real cost of the product
Many Amazon sellers ignore one process, that is, calculate the actual cost of a product, which includes the cost of entry transport and return. Some sellers forget to include these costs in actual costs.
5. Run Amazon's Sponsored Products for the Amazon Products of low Buy box share
Sponsored Products needs to be strategically considered. When you use Amazon Sponsored Products for a product that does not win Buy Box, you're wasting money. Simply by improving the sales ranking of these products for your profit is not good. The higher the "share" you have in your Buy Box, the higher your return on investment, so you need to invest wisely.
6. Give up the diversification products and choose a single product
Grasp your "Blue Ocean" product is not a bad idea, but be careful do not let it hinder your product diversification strategy. The Amazon platform is more saturated than ever before, which means you can not always be the only winner of Buy Box. Therefore, we must always pay attention to the latest and the most cutting-edge products in the same category.
7. Use rule-based repricing tools, not algorithms-based
Today, many repricing tools call themselves "algorithms," and in fact they simply bundle a bunch of rules together. While there is nothing inherently wrong with the software asking you to manually set the pricing rules, if the bulk sellers want to scale up and avoid getting involved in a price war, they need to upgrade to more sophisticated Amazon pricing tools.