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Top 6 Problems Newbie Amazon Sellers Are Facing Today

Top 6 Problems Newbie Amazon Sellers Are Facing Today

Trying out new things can be a nerve-wracking experience. This is especially true if you’ve decided to attempt online selling or expand your business by entering one of the biggest marketplaces in the world. Whichever point you’re starting, you’ll have to encounter some challenges if you’re going to sell on Amazon.

Before we begin, why sell on Amazon?

Since the increase of Amazon’s popularity and dominance in the eCommerce industry, it has become a top destination for online sellers. Apart from its influence, sellers are inclined to sell their products on Amazon, either via FBA or FBM programs, because of the potential sales.

Selling on Amazon could be every seller or entrepreneurs’ dream, but it’s not always sunshine and rainbows. Even successful sellers had to face obstacles when they first started their Amazon journey.

Needless to say, this isn’t meant to discourage you - the idea is to raise awareness and keep you ready for the waves that are about to come. Knowing what you’re getting into will help you build strategies that can eventually get you through any challenge.

Here are some of the most common problems you’ll likely encounter as a new Amazon seller:

1. Amazon Seller Central Navigation

If you’re entirely new to setting up your own store or listing products on another website, the user interface can get slightly confusing. Although we put this on the list, you can consider it a minor problem that can be easily solved.

Amazon Seller Central screen

Amazon has relatively easy website navigation that makes it easier for non-experienced users to check out. However, if you ever get lost, there’s plenty of instructions on how to navigate Amazon Seller Central across multiple sites. There are videos about it on Youtube, blog posts, and other forms of content. You can also visit https://sell.amazon.com/ and read more about Amazon’s general information for sellers.

2. Policies and Restrictions

Are my products allowed on Amazon?

Like anywhere in the world, there are rules to follow. Amazon has made clear guidelines on what kind of items or products are eligible to sell on their platform. As a new seller, it’s vital to review those regulations and make sure your products are not considered as ‘’hazardous’’ in Amazon’s review.

To know more about FBA prohibited products, click here. Other topics like brand registry, content infringement, and marketing are also included in their guidelines. It’s best to keep yourself updated and follow Amazon’s policies to avoid getting restricted.

It may come off as intimidating, but there’s no need to worry. You don’t have to do it all by yourself. In fact, you could be better off seeking help from Amazon skilled professionals who can do these things for you.

3. Extreme Competition

Competitors

As stated in ChannelKey, Amazon has 1.9 million active sellers in 2021. While sources disagree on exactly how many sellers currently compete on Amazon, most estimate between 1.9 and 2.5 million active sellers. According to Marketplace Pulse, nearly 2,000 new sellers join Amazon every day.

It’s getting tough for new sellers to rise on the marketplace with the overflowing number of competitors. This is mainly because many sellers put out similar items on sale, and many of them buy the same things in bulk from the same manufacturer or suppliers to re-sell them on Amazon.

This caused other sellers to come up with their original and unique products to appeal to customers and build their brands.

Ranking up can be hard, but there are special tools made for Amazon sellers that can be used to optimize your listings and make your products come up on top of customer searches.

Learn how our team can help you rank up your Amazon product listings today.
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4. The Amazon Seller Price Clash

Naturally, every seller would want customers to choose them and purchase from them. Pricing has a huge impact on buyer decisions, especially if rows of sellers are selling the same products.

The Amazon Buy Box helps sellers get recognized by customers and increase their sales. Due to this, they get into price wars.

Newbie sellers make the mistake of pricing their products lower than their competitors’, thinking it would be a great move, but it’s quite the opposite. Most only set themselves up for loss because it affects profit margin.

To avoid this, use tools that automatically reprice your listings to stay in the competition. Note that you shouldn’t overprice your products either because it can trigger suspension for violating pricing guidelines.

online payments

5. Payment is set every two weeks

Once you’ve sold items on Amazon, the payment is deposited directly in your account after 14 days of waiting time. 

If you don’t have enough resources to maintain your inventory, it can be difficult. But thankfully, it’s only temporary!

To keep your business going, make sure to prepare funds to avoid inconvenience. Keep in mind to check what kind of payment methods Amazon accepts.

6. Feedback Collection

customer feedback

Customer reviews and feedbacks are some of the most important factors in Amazon’s ranking algorithm.

Previous sellers have tried manipulating reviews by giving out gifts to customers. Thankfully, Amazon has already changed its community guidelines regarding this issue.

Being a new seller means you’re less known, and having no reviews on your products can significantly influence buyers to scroll away. The greatest thing you can do is to provide a seamless experience to customers. Engage with your shoppers, answer their inquiries, and be someone who’s trustworthy.

That way, you can get organic reviews and build credibility.

Final Thoughts

While it’s evident that facing these hurdles can be disheartening, but it’s only because you haven’t tried yet. This is a reminder that there will always be a way around it. The pace might be slow, but all you need is patience and a deep understanding of how things work.

And don’t do everything by yourself. With the help of the right team and tools, you can reach your dreams and business goals. Success is on its way!
Let our team of top-notch Amazon Virtual Assistants get your business going.
Book A Free Call

References:

Top 5 Problems Encountered by Newbie Amazon Sellers - https://www.sellerapp.com/
Major Problems With Selling on Amazon and Advice for New Sellers - https://www.thebalancesmb.com/
Solve 5 Common Issues for New Sellers With Amazon Experts - https://sellerinteractive.com/

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