Amazon is a leading e-retailer across the globe. It has more than 200 million prime customers and over 9.7 million sellers. These figures can be relaxing for Amazon, but not for the millions of its sellers.
The traditional retailers on Amazon struggle to sell their products because of this huge competition. Only a few retailers are garnering significant shares of Amazon marketing; the rest are just struggling to boost their sales.
However, colossal competition is not only the reason for low sales; there are other reasons, too. If you are also facing low sales, you should look into the top five mistakes hurting your sales on Amazon.
Top 5 mistakes to avoid when selling on Amazon
1. Having no strategy for fulfillment
This is one of the major mistakes made by sellers, which leads to costly and late fulfillment. Since Amazon is one of the platforms that promise their customers quick and on-time delivery, failing to do so can make your brand's reputation bad on Amazon's lense.Source: Unsplash
Most customers even choose prime membership of Amazon for free, 2-day shipping. If they don't receive the product on time, they can leave poor reviews on your product page, which will affect the overall sale. But how are some merchants able to do fulfillment on time? Well, they use Fulfillment by Amazon (FBA), an Amazon program that helps third-party sellers ship their products on time.
As per Statista, 73% of top Amazon sellers were found to utilize FBA in 2018 in the U.S.
FBA is a storage and shipping service that helps businesses like you sell their products. Afterward, Amazon handles the rest of the job, like receiving, picking, packaging, and shipping the product to your customers.
When you consider using FBA, your products will even get the FBA logo, which will create trust among the customers that the company will deliver the product on time.
Along with this, you need to have a well-versed pricing and fulfillment strategy so that you can ship the order on time. These two factors are crucial to master and win the Amazon Buy Box.
Analyze your competitors to know their pricing and then do your math to offer the best price to your customers while saving a significant margin for yourself. Also, set up a team to ensure that products are dispatched on time.
2. Incorrect or incomplete product details and description
Amazon has a set of criteria to rank a product on specific terms (keywords). If your product description contains those keywords, the Amazon algorithm will detect them to know about your product and rank accordingly. However, other factors can influence the ranking, like rating, reviews, etc.Also, a good product description gives customers the complete detail of the product, which is necessary to earn their trust. Since they cannot touch the product, they rely on the product description and visuals. Providing complete information and attractive visuals gives confidence to your customers to buy your products.
But most sellers provide incomplete and incorrect information about their product, which affects the brand's reputation. People don't want to purchase from a brand that does not provide complete and correct information about their products.
Are your product descriptions incorrect and incomplete? It is a tedious task to manage the product data of hundreds of products. But there is a solution to this problem, i.e., ERP (Enterprise Resource Planning) or Point of Sale system. This software helps you with the multichannel listing, allowing you to list your products according to Amazon criteria.
You can also hire a company that provides Amazon marketplace service, like Saffron Edge. Our team will help you manage your store and list your products on Amazon with the complete and correct information that can help you convert.
3. Fail to run Amazon advertisements correctlyIf you are not seeing any growth in your sales even after running Amazon advertisements, the advertisements are not on the right path. Most sellers make mistakes while preparing ad campaigns, losing their money there. But what are these mistakes? Not having a strategy: Every good ad campaign begins with a robust strategy that includes analyzing competitors' strategy, including rich keywords and utilizing negative keywords (words or phrases you don't want to show for). Poor account structure: Structuring the Amazon advertisement structures is crucial because it determines how your products will be categorized. Lacking the proper structures can lead to inaccurate reporting. It's best to use detailed categorization methods so that you can group similar products in the same ad campaign. Not using all ad types: Many sellers run advertisements with just one ad type, which is a mistake. Since not every customer treats the ad the same way, diversifying your ad types will work for you. Lack of testing: Testing is the key to success. Good advertisers always test out different strategies and evaluate the performance. That lets them know what is working and what ad campaigns drive more leads.
To successfully sell on Amazon, a seller needs to manage their inventory. This one side helps the buyers to know whether the product is in-stock. On the other hand, it allows sellers to fulfill their stock on time.
Proactively managing the Amazon inventory also helps sellers to avoid overselling, which can cause your account to be penalized. Amazon takes overselling very critically because it doesn't want to tell its customers that it can't ship an item they bought because it is out-of-stock.
How to fix this problem?
It's best to utilize integration software that helps you manage real-time inventory across multiple channels. It allows you to sync inventory levels to take necessary steps before an item goes out of stock.
5. Not leveraging customers' ratings and reviews
Customer feedback has a significant impact on business growth. They can go either way for the sellers. Poor reviews and ratings can lead to distrust and loss of sales, while stellar reviews can bring more deals to your desk.As per a report, 90% of customers read online reviews before purchasing a product from a brand. It shows how important it is to get excellent feedback from the customers. That not only creates trust among your customers but also helps you rank on top. But how to leverage customer reviews? The best way to increase customers' reviews is by asking them to give feedback. Follow-up a purchase and ask to leave feedback if they are happy with your product. However, you may also get bad reviews, but don't panic. Take time, understand why they are unhappy, and try to fix the problem so that your customers can feel that you give importance to their feedback.
Takeaway!Amazon is a big marketplace for sellers like you. But you need to be very careful while listing your products and avoid some mistakes to succeed. Make sure you test and follow effective strategies. And if you find you need help to manage your Amazon marketplace and kickstart your sales, reach out to us. We will help you achieve your full potential to boost your growth. We have the best marketing strategies driven by customer-focused data that give you an edge to compete against other sellers and leverage your store. Get in touch with our experts! They will provide you with a glimpse of our services and audit your marketplace so that you can give a new direction to your business from today!
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