Running a successful business on Amazon requires a good strategy, time, customer focus, and operational efficiency. E-commerce business has a failure rate of about 80%-90% failure rate. If you are running an ecommerce business or desiring to start this article if for you. Yet, businesses on Amazon have a tough time and end up not doing well.
If you think it is because of high competition in Amazon businesses market then you are wrong, every year number of seller on amazon increases but still it is not fulfilling the current demand of the customer, and in upcoming year Amazon businesses needs more sellers to fulfil customer demand. So, if You want to stand in the list of successful sellers here are few tips for you.
In this article, we will talk about five big reasons why this happens: Unprofessional Product listing, Wrong Pricing Strategies, Improper Logistic Management, Choosing Low-Quality Products, Improper Customer feedback.
Unprofessional Product listing
If you are want to increase your sales and you are thinking to do with performance advertising without looking to this factor then you are making loss, Every successful business take more care how his product listing looks, It should have proper keywords you buyer is searching for, professional photographs not picking from online or low resolution and video will contribute extra points to the listing. This factor contributes more to developing and contributing to ranking, there are 100s of tools available online to check your listing score like Helium 10 is providing good result globally, Amazon Businesses also provides tools for testing Listing score. So before going for advertisem*nt create a checklist and mark your listing score for better results.
Making Price Mistakes
Choosing the correct price for your product is most important things to make profitable online business, there are multiple factors that affect the price of the product. It is a myth that reducing the price will give you good sales, and overpricing will give you goodAmazon Businesses. Include all the factors like packaging cost, delivery cost, labour for packaging, loss from returns percentage, delivery cost amazon fees advertisem*nt and your profit margin. These are the factors that must include to prevent underprice product. For overpricing of the product, you can check the competitor’s price for the product or the value for the customer if product is unique, it should contribute the value to the customer who is buying that product. So, this the second foremost thing that is going to contribute to building overall ranking of your store and for your product.
Improper Logistic Management
There are three ways how you can deliver the products after getting the order from amazon.
When you join FBA, you send your products to the Amazon Fulfilment Centre and Amazon takes care of the rest. Once an order is received from customer, Amazon will pack and deliver your products to the buyer as well as manage your customer queries. There are multiple benefits of choosing this service like fast delivery, prime tag, more visibility to the customers but can be costly compared to the ways.
Amazon Easy Ship is an end-to-end delivery service for Amazon.in sellers. The packaged product is picked up by Amazon from the seller's location by an Amazon Logistics Delivery Associate and delivered to the buyers' location.
Advantages of using Easy Ship are as follows:
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Being an Amazon.in Seller, you can choose to store, pack, and deliver your products to the customer on your own by using a third-party carrier or your own delivery associates.
Advantages of using Self-Ship are as follows:
When buyer search the product mostly it chooses from the location where they get faster delivery, so seller should plan for the delivery locations from where the seller get faster delivery, keep FBA location near to the customer it will highlight the customer account and give more visibility online. The better if the visibility the chance of getting sales will be high.
Low Quality Products
After improving the rank seller should focus on maintaining that if gains, low quality of products will increase user complaints and larger return volume that will decrease the product rank and store rank, it will decrease performance marketing campaigns and will increase your marketing cost and hence contributes to huge loss to the customer. Choose the right source quality of the product if you want to your business long term profitable.
Neglecting Customer Feedback
Customer provides two types of feedback one is the product and second is to the seller. Amazon cares more about its customers that is why it is known as world’s first customer centric company. So, seller needs to be more care about customer feedback and resolves customer complaint as early as possible. A negative review can set you back by 10 days of your work you have done.
Conclusion:
Amazon selling business could be more profitable business but need dedicated work proper investment, time is also key factor that any business needs, also seller should choose the right competitor not too big or too small that will also lead to business losses. Taking a guidance from professional is also an excellent choice for making business profitable, ensure to request plans in smaller, manageable segments with defined time limits and expected outcomes of each smaller chunks. Also, confirm that they have licensed professional tools for long-term success.
Continue to stay updated with the latest Amazon seller news for the best insights and updates.
Avoiding these mistakes will help your Amazon business do well and keep your customers happy.
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