When you choose to become a seller on the Amazon platform, you take a risk. The slightest mistake could cost you valuable time and money, if not worse. An error could put your business at risk before it starts. Amazon’s universe can be confusing, but by arming yourself with a wealth of information, you can maximize your chances of success. So, if you are a new Amazon FBA seller, you are in luck. We have compiled a list of the 5 main mistakes to avoid.

1. Sell a product at a low price.

When you start selling in Amazon, it’s normal to start low. For you this is a new activity, and inexperience may make you lose money. But you will have to avoid selling products whose price is less than 10 €. Even if you think you can make a small margin. There are 2 reasons for this:
Fixed costs will absorb your margin. Fixed cost means your monthly subscription to Amazon, the fees of your accountant, etc …
On the other hand if you are an FBA seller and your product has a selling price of less than 25 € it will not be eligible for free shipping by Amazon as part of the Premium subscription. This may put off many potential buyers.
You will have to look for a product with a sale price between 20 and 50 euros. Why a price between 20 and 50 euros?
Below, it will be difficult to clear a margin.
Above, your initial investment may be too much for a first experience. In addition, for a purchase over 50 euros customers will prefer to think, talk about it before their spouse and will be less inclined to buy impulse.

2. Make a profit margin

Many of the seller are losing money on Amazon. More than 90% of Amazon sellers fail in their first year. You should not forget that selling on Amazon is not as easy as buying products in China and reselling them on Amazon.
There are also costs to be expected. Whatever product you sell, you need to make sure you can sell it on Amazon at a profit.

This means that your revenue per item must be greater than the total cost such as samples, product cost, shipping cost, storage, packaging, Amazon fees, PPC advertising. This is called the margin. You will have to consider these many costs before you start. You need to think about your margin when negotiating with your supplier. You should also think about your margin before setting your selling price.

When selling your products on Amazon, keep in mind that all the basic fees and costs of products that must be absolutely covered. Ideally, the product you have chosen should allow you to benefit from a margin rate of at least 30 to 35%. This margin rate is not fixed: it is a starting margin rate, which you can improve over time. When selling on Amazon, your profit margins are an essential variable for your success. Without margin, your business will not survive and you do not need to engage in a losing battle. Just because you have products to sell does not mean you have to sell them at a loss to compete with your competitors. Otherwise you will go straight to disaster. Profit is paramount in business. Consider integrating manufacturing, shipping, storage and sales costs. Keep a close eye on your profit margins to finally achieve success.

3. Choose a saturated niche

The most common mistake of an Amazon seller is not to do a thorough product review before you start. You may be tempted to choose a product that sells a lot, without trying to analyze the market. It is important that you know the number of competitors. Competition is a good thing. This usually means that the demand exists and there is money to be made. But when you start from scratch, it will be difficult for you to compete with other vendors who already have many years of experience, with lots of feedback and low BSR. Some niche products on Amazon are saturated by the competition, it will be very difficult for a new seller to make a difference. There are many opportunities on Amazon to launch products that have high demand, without there being already hundreds of competitors. So if you have to choose between 2 different products for sale on Amazon and one has 10,000 competitors and the other has only 50, you will have to choose the one with only 50 competitors, even if the demand is slightly lower. You will always have to choose a product that sells a lot but with little competition. For example, you can use the tool called CEREBRO supplied by HELIUM 10. You enter the ASIN number of the product of one of your competitors. And the application displays a note, “CEREBRO IQ Score”, based on the algorithm of HELIUM 10, which analyzes the level of competition. The higher the score, the easier the competition will be. This easy-to-use tool will help you analyze the competition.

4. A non-optimized product listing

  • The customer who will consult your listing, will buy the product based on the information you provide. The person who will be viewing your listing may have never seen your item in store. Photos, description and comments are elements that will allow him to take action. A badly worked page will not convert. And a page that does not convert will be sanctioned by Amazon who will give it a bad BSR. In other words, a botched listing will be misclassified in the search results of an Amazon client. Amazon in its algorithm will keep the number of comments. Unfortunately, when you launch your product, you will leave with 0 comments. But Amazon, fortunately, takes into account other factors to establish its ranking. The algorithm will analyze the quality of your listing which must be the most attractive possible. Here are the most common mistakes you should avoid to improve your ranking:
    A title that does not describe the product
    Have poor pixelated images
    A limited description and of poor quality.
    Few Optimized Keywords in Frontend and Backend
    Not to mention the benefits that the product will bring to the customer in its Bullet points
    In practice you can rely on the tool called SCRIBBLES HELIUM 10. With the help of this powerful SEO tool, you will never forget to include a valuable keyword in your listings. You will appreciate the ease with which you will create attractive ads in the front and main parts of your product listing. Even without comment to the launch of your product you will be able to improve your BSR classification.

5. Not paying attention to customer comments and questions

Today, every customer takes notice of other buyers before making a purchase decision. If your product has no reviews or negative reviews, it is unlikely to be added to the shopping cart. In case of negative comments on the product, take the time to analyze the problem and thank the customer for the help he gives you by his criticism. Try to find an amicable solution so that he revises his comment and corrects his rating. Possibly proceed to a refund of the product. Because it is estimated that it takes about 12 positive opinions to compensate for 1 negative opinion. When you receive a request for product information, try to respond within 24 hours. If customers do not receive an answer, they may not search for your product. On the other hand, if you still have not received feedback for your product, you can ask your customers in a very professional way. This process can be automated with the Amzcockpit auto-responder. This is a web application specifically dedicated to Amazon sellers. You will be able to send an email automatically to your customers to ask them their opinion. The Amzcockpit Web App is connected to your Amazon seller account. You do not need to know the email address of your customers, the mails always leave after the delivery of your product. Positive comments always reassure visitors and make them want to trust you. Attention, gifts or discounts in exchange for positive comments are formally by Amazon.

HELIUM 10

The HELIUM 10 software suite contains, to date, a suite of 18 tools. It is today one of the most powerful applications. But HELIUM 10 is also the most complete application on the market. HELIUM 10 tools are designed to save time, search for profitable products, discover profitable keywords, delete unused keywords, spy on competitors, identify BAF refunds for damaged or lost inventory, and optimize your product list. . HELIUM 10 is fast and easy to use, whether you are beginner or experienced. We highly recommend this application. You can make your own opinion by testing it for free. You will find below a link to HELIUM 10 and 2 discount coupons.
A coupon of 50% discount on the first monthly payment
A coupon of 10% discount for life on your subscription.

Top 5 beginner errors on Amazon FBA, Amazon Seller Tools

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