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Why Many Sellers Fail on Amazon

The key to successfully selling on Amazon is educating yourself and using available resources. Amazon is a beast and it is not as easy as listing a product and watching the sales come in. You must educate yourself of how to create effective strategies with advertising management, finances, inventory, marketing and utilizing programs that Amazon offers. Just like there are success stories, there are also horror stories of Amazon fails.

The Amazon Enthusiasm

Amazon is not as easy as some might think and there is no promise of profit, and there is a risk of financial loss. You must go into the platform with realistic expectation and be willing to donate the time and money to get your ecommerce business started. Although Amazon is a great resource, it can be dangerous to become fully dependent on it. Use other platforms as well, it’s a great way to get additional income. Also, if for some reason your main listing goes down or your seller profile takes a hit, you have a backup plan.

Using your Resources

Like any business model you need to be very dependent on data. Know where you can pull reports. Data is going to be beneficial in:

  • Forecasting
  • Identifying what items are successful
  • Inventory management
  • Identifying keywords to advertisement campaigns
  • Knowing your profit/loss

Amazon also offers many programs to help gain reviews and traffic to your listings. It’s worth the time getting familiar with these resources. Many sellers think that Amazon is easily a one man show, but if you are generating sales on Amazon you are going to need assistance to maintain it. Having an expert on your side is worth the investment to watch your business grow.

Understanding Finances

Know where you are financially in your business and be willing to invest. Maybe your are considering using FBA, use the FBA calculator, know your margin, cost of goods, shipping cost and Amazon fees to make sure your items are priced competitively and enough to see a profit. Be willing to invest, you have to spend money to make money. Your listings will need great pictures, positive reviews and visibility to result in conversions.

Have a Good Product

You can find ANYTHING on Amazon, so what makes your product unique that the buyer would purchase yours over your competition. Think of what problem that your product is solving, maybe that will provide an opportunity for product targeting or bundles. Are you selling a quality product? Buyer will look at reviews and if they are not positive, they will look at other options. Although we hate negative reviews, use them to understand weaknesses of your product and adjust.

Don’t expect to become a millionaire overnight, it takes time to start to see positive results on Amazon. You must understand the behaviors of your target audiences and also get your listing retail ready to gain the trust of your potential buyers.





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