As we ease into the middle of the year, you can’t deny that Amazon still holds the top spot when it comes to eCommerce, despite the prevalent Amazon issues. The economy is gradually opening up and more people can now go outdoors. However, there are still people who want to avoid the risks and opt to stay at home.
Not only are we talking about consumers but small business owners are now opting for online shops instead of brick-and-mortar stores. The best benefit of having an online store is that you don’t need too many people to manage it. Plus, you get to enjoy the perks of managing your online business at the comforts of your home. Your laptop and phone are your best communication channels. If you need to meet your supplier? Just create a Zoom meeting.
However, before you pack up your store and decide you just want to sell online, there are also a lot of things to consider. Selling online, via Amazon, has its benefits as well as its downsides. Be prepared for the challenges that most Amazon sellers face, and continue to struggle with.
Top Amazon Issues
Here are the top challenges that you will face on Amazon and how to prevent them from happening:
Challenge # 1: Too much competition, including copycats.
Resolution: Registering your brand on Amazon is your best protection against counterfeit products and greedy sellers. You enjoy a lot of perks when you are brand registered. Among the perks are having an Amazon storefront where you can “display” your products, having A+ content that lets you showcase the features and benefits of your products, and more. You can also report sellers that sell counterfeit items at a much lower price. To know more about being brand registered, read our blog.
Challenge # 2: Paying Taxes
Resolution: Amazon still requires you to pay your taxes. You need to go to your Seller Central settings and designate which states you want to collect sales tax from. Also, you need to properly file your taxes to avoid getting penalized or suspended. Here’s an article on Amazon taxes, regulatory fees, and exemptions.
Challenge # 3: Dealing with Duplicate Listings from Competitors
Resolution: Every month, search the Amazon catalogue for duplicate listings. You can also “snoop” your competitors and check out their products, prices, and listings. Report these to Amazon especially if your product designs are patented so the listings are removed. Update your listings to “challenge” your competitors and make your content stand out so that shoppers will notice your brand better. Better yet, you can also run campaigns to direct consumers to your products and increase sales.
Challenge # 4: Decline in Sales
Resolution: Don’t get laidback when you have a lot of sales. This is one of the Amazon issues that makes some sellers complacent. What is selling like pancakes today may not sell out in 6 months or less. Make sure to optimize your listings and content every quarter. Keyword trends may also change over time, so make sure you research on these and incorporate it into your listings and content. Your goal is to stay on top of search results.
Challenge # 5: Running out of Inventory
Resolution: Among the Amazon issues you may face is expensive costs. Avoid paying expensive shipping costs to expedite delivery of your items and plan in advance. Factor shopping holidays and increase your inventory as needed. You should also analyze your inventory and see which ones are slow-selling so you can put them on sale. Another tip is to get a third party seller so your inventory does not run out and your keywords will still be visible in the search results.
Challenge # 6: Facing Suspension
Resolution: This is by far the worst of the Amazon issues that could happen. Either your product or products, or your whole account gets suspended for a reason that you weren’t aware of. Amazon changes its policies every now and then so make sure you keep updated. Join seller forums, read the Amazon news, and always monitor your account health. Your Amazon account health is by far the best monitor for any issues that may compromise your account. Ideally, your rating should always be good.
It is crucial that you employ a solid system of managing your inventory, checking and responding to your messages and reviews, and updating your listings. Again, do not be complacent even when your sales are really good.
Becoming an Amazon seller entails more responsibility than you can think of. The key is to stay on top of the game and not be complacent. Monitor your account, update your listings as needed, and keep your inventory stocked especially on shopping holidays.
If you want to know more about updating your listings and content, let us know and we’d be glad to help you out.
“The major difference between successful and unsuccessful people is that the former look for problems to resolve, whereas the latter make every attempt to avoid them.”— Grant Cardone