How To Avoid Making New Seller Mistakes On Amazon
Starting a new business and introducing a new product is exciting. The process from its conception to its unveiling is a huge venture, so congratulations if you are already there! All of those late nights, pounding coffee, going through the steps from research to production, has paid off. So, you don’t want to have come this far to suddenly fail because you made these common new seller mistakes.
If you’re reading this, it probably means you have taken the initiative to sell your product on Amazon – a wise choice, seeing as Amazon is the largest marketplace available in the U.S. and other countries, raking in a whopping 25.4 billion dollars in 2017 in The United States alone. However, entrepreneurs may accidentally jeopardize their success by cutting corners.
THINKING HAVING A POPULAR PRODUCT AUTOMATICALLY EQUATES TO MORE SALES
Whether you decided to resell an item or you’ve created your own product similar to something that already exists, we encourage you to reconsider going after the most popular selling products on Amazon. This is particularly true if the “must-have” product at the time is probably not going to have a long shelf-life.
It’s natural to assume that imitating the most coveted and sought-after items on the marketplace is a surefire way to make instant profits. However, that’s not always the case.
For starters, if the product is popular then the market is going to already be saturated with variations of it. Based on the natural self-correction of the free-market, these sellers are going to have to lower their prices to try and compete with cheaper knock-off brands that are bound to follow suit. So, you now have a product that is everywhere and you need to price your item low enough to compete with the big dogs but high enough to still maintain a good profit margin.
This doesn’t mean you can’t be successful with a popular item – plenty of people have enjoyed positive results with this business model. Just be prepared for serious competition and probably dropping a significant amount of money to try and get on the first few pages of Amazon. Also, ask yourself if this item is something that will A) always be needed, regardless of the volatility of the market and B) is unique enough that it will stand out from all the products competing in that niche. If that answer is yes, it’s more likely it will be a sustainable business.
NOT KNOWING YOUR AUDIENCE
There are a lot of international sellers that have products on Amazon. In fact, a large portion of our business at Markethustl comes from overseas sellers that are selling on the U.S. Amazon platform. Why? Because no other country comes close to making the sales on Amazon that The United States does.
If you are an international seller who wants to push products in the United States, you need to understand the American market. We cannot emphasize enough how many international sellers pick products based on what they think Americans want as opposed to what they actually want.
This isn’t crucial just for supply-and-demand; it’s also important to know the dialect of other countries for keyword optimization.
For example, a lot of other countries refer to coffee mugs as “tumblers” but that isn’t an incredibly common term in the states. So, when you write a listing, it’s okay to use the word “tumbler” but don’t expect many Americans to be looking specifically for tumblers. You’ll probably convert better for words like “coffee mug” or “coffee cup” or “thermos.”
Knowing your audience also means not targeting too broad of a clientele. If you try to target too many people in hopes of getting more sales, it might have the opposite effect. For example, plenty of men use face products, but if you are selling a product to help improve a youthful appearance that reduces wrinkles, there’s a good chance more women will be buying your product than men. Thus, your content, keywords, and photos probably should be geared toward women.
Knowing who needs your product and how they’ll be looking for it is critical for conversions.
NOT HAVING ENOUGH INVENTORY
We get it. Staring a new business can be just as nerve-wracking as it is exciting, particularly since you have no idea if it’ll be a hit. Because of this trepidation, many new seller mistakes are made by not ordering enough inventory to meet the demands of the market. This is particularly true if you are trying to rank for a popular keyword where you’re competitors are selling thousands of units. If you don’t purchase enough inventory, you are going to regret it. You need inventory for discounted promotions; you need inventory to fulfill orders. If your product starts taking off and you run out of stock, there is no quicker way to kill a business than not being able to fulfill orders quickly and efficiently.
NOT UTILIZING YOUR RESOURCES
Stop wasting time handing out promo codes. Stop spending money on storage space and fulfilling orders and dealing with returns and angry customers. Every second you dedicate to these backend details is valuable time lost building your brand.
Your efforts are better funneled into working on marketing, branding, and promotions. Hire professionals to help with keyword optimization, photography, and campaigns. Use FBA to do the backend, laborious responsibilities like getting your product from A to B with no damage or problems. Hire a company to deal with customer support, bad reviews, and complaints.
In other words, it’s worth spending the money to have professionals ensure smooth operations. It will be exponentially better for you business in the long run because you’ll have a better product, better customer service, and happier clients. This translates to success.
UNDERESTIMATING THE POWER OF A SOCIAL MEDIA PRESENCE AND PERSONAL WEBSITE
If you don’t have a storefront, website, or social media accounts for your business, you should consider it. Social media has a strong hold on most consumers and can elicit intrigue and interest in your product, provided your accounts are managed correctly. A social media presence can drive potential buyers to your website or Amazon listing, converting interest into action.
It also gives you more of a voice to your brand. Amazon doesn’t offer a lot of freedom to interact with customers, so being present on social media can make customers feel more connected to you and your brand.
Furthermore, if people are willing to share your posts, blogs, and pictures, that’s free advertising for you!
Even though the research, production, and finalization of your product might be over, building your business has just begun. While you’re human and mistakes are bound to be made, there are ways to avoid making Amazon new seller mistakes that could jeopardize the direction and success of your brand. Take heed the advice provided because not cutting corners will result in a thriving business.
Coupon Marketing Agreement
(“Agreement”) by and between iLoveToReview.com, LLC dba MarketHustl.com, a Nevada limited liability company, (the “Company”) and the undersigned client (the “Client”), effective as of the date set forth above (the “Effective Date”) and covers all promotional campaigns for MarketHustl.
Amazon TOS Compliance
- We are not a review company. We will never ask any member to review a product.
- We have no way of tracking any information related to Amazon reviews
- Providing products in exchange for a review is against Amazon TOS.
- All campaigns are for strategic promotional purposes only
- The term “Coupon Codes” means Amazon.com coupon or promotion codes provided by Client for distribution by the Company. All Coupon Codes provided by Client to the Company shall reflect a Significant discount on the price of the product(s) described above (the “Product(s)”), but need not discount Clients’ ordinary shipping and handling costs.
- Client understands a Campaign Date will not be set until Company receives Coupon Codes for distribution as set forth below.
- The term “Redemption Target” means the numbers of people who use the Coupon Codes to claim a Product(s) from the Client’s Amazon account. Client agrees to provide Company with an accurate report showing such redemptions within three (3) business days of Company requesting it.
- The Company will use reasonable efforts to distribute the Coupon Codes by email, SMS messages or website visitors until Redemption Target has been reached, however, there is no guarantee the redemption target will be reached. The Company will be responsible for the timing, nature, and means of distributing the Coupon Codes; provided, that the Company and Client shall mutually agree in advance to any product description, marketing materials, or the like used by the Company in connection with distributing the Coupon Codes. The Coupon Codes may be distributed in conjunction with coupon codes for other products and/or services, including those of other clients.
- Campaign Fees: Client shall pay the Company the Single Promo or Standard, Basic, Business or Corporate subscription fees which are due immediately upon execution of this Agreement. The Company shall have no obligation to distribute any Coupon Codes until payment in full is received.
- Campaigns: Campaigns are defined as a coupon code promotion for a single ASIN. Single Promotions are limited to a 1 time promotion for up to 200 coupons. All subscriptions can run unlimited promotions per ASIN per month with no coupon limits.
- Client shall be responsible for timely fulfilling all orders for the Product(s) utilizing the Coupon Codes, consistent with its ordinary fulfillment policies, at its own cost. The Company will not pay for any part of the costs or retail price of the Products, and will not provide shipping, logistics, or fulfillment services. Client shall not charge shipping and handling greater than it charges paying customers for like goods.
- The Company shall not be liable for any damage or loss caused by use of the Coupon Codes, including, but not limited to, redemption by persons other than its subscribers, publication of the Coupon Codes, or redemptions of the Coupon Codes in excess of the Redemption Target. If Client believes that the Coupon Codes are being misused it is Client’s responsibility to deactivate the Coupon Codes.
- Upon the Company’s request, Client shall provide to the Company the complete fulfillment report from the time of the campaign.
- Client shall ensure that on the day of the promotion that the product price will be at a price that the Coupon Codes will reduce the item to the agreed upon amount as indicated on the cover of this Agreement. Client further promises that they shall not change the price of the item on Amazon for 5 days after the promotion launch date to ensure that the Coupon Codes will discount the product as promised for 5 days after the promotion date.
- The Term of this agreement shall be for 30 Days from the day the Coupons are first distributed by the Company for all campaigns and automatically renewed each month upon monthly subscription payment.
- Campaigns are valid for 12 months from the date of purchase and are non-refundable.
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- Client agrees to indemnify, defend and hold the Company harmless for any liability, damage, loss, claim, cause of action, injury or expense (including reasonable attorney’s fees and costs) arising from or relating to any Client’s product(s) or any product(s) promoted by Client pursuant to this Agreement, Client’s failure to fulfill any order pursuant to the Coupon Codes, any returns, reimbursements or the like, or any claim that any product promoted by Client under this Agreement was in any way defective or deficient, including, but not limited to, claims in the nature of negligence, product liability, breach of warranty (express or implied), breach of contract, or fraud (collectively the “Covered Claims”), whether for injury to person or property, or otherwise. If any Covered Claim is asserted against the Company, the client shall have the right to retain counsel of its choosing, and shall promptly notify Client of such claim.
- WITHOUT LIMITING THE OBLIGATION TO INDEMNIFY THE COMPANY UNDER PARAGRAPH a. ABOVE, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND, AND THE MAXIMUM LIABILITY OF EITHER PARTY HEREUNDER SHALL BE THE AMOUNT ACTUALLY PAID BY CLIENT PURSUANT TO THIS AGREEMENT.
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