Sometimes, Amazon sellers inadvertently commit Amazon Mistakes that can easily put any business in peril. These are the top 5 blunders Amazon sellers make and ways to prevent them.
Mismatched quantities between available inventory listed on Amazon and actual inventory held in the fulfillment center expose the seller to the dangers of overselling. Overselling is risky not only because it affects the Order Defect Rate (ODR) due to order cancellation, but also because it drives away customers and pulls down sales and profits. Some of these overselling instances can be categorized under amazon fba mistakes if using the FBA service. To prevent overselling, conduct regular inventory checks and compare actual versus listed quantities. Inventory monitoring can be performed manually or automatically, adhering to amazon seller rules.
2. Fixed Pricing
One of the common Amazon price mistakes is fixed pricing. Some sellers, especially those new to online retailing, set a fixed price for each product listing. Though this isn’t inherently wrong, it limits profit-making opportunities. Prices in online markets fluctuate due to supply and demand. Having a fixed price might mean the seller loses out when the market is willing to pay more or may not sell at all if priced above the prevailing rate. Flexibility in pricing, possibly using a repricing tool, is essential.
3. Overall Supply Blindness
A notable oversight, and one of the critical amazon listing errors, is the lack of visibility into overall stock quantities available across all competitors in the marketplace. The repercussions of this blindness can lead to overstocking or understocking, both of which carry costs. With tools like Amzpecty, this blindness can be alleviated as they provide critical quantity and price information for every seller on a product listing.
Underpricing, another common entry in Amazon pricing mistakes, can hurt a seller’s profitability in the long run. Whether intentional (as part of a pricing strategy) or accidental, pricing below the intended profit margin can jeopardize the business’s future. Tools like the FBA calculator can help sellers avoid this mistake by giving insights into ROI, net profit, and profit margins, ensuring alignment with amazon seller rules.
5. Not Investing in Tools
In the competitive landscape of Amazon, not investing in tools can be counted as one of the fundamental Amazon Mistakes. The absence of tools can lead to numerous amazon listing errors. Tools, whether free or at a cost, aid sellers in optimizing operations, from tracking prices and quantities to adjusting pricing strategies. Investing in these tools, while understanding amazon seller rules, ensures sellers can maximize profitability and avoid pitfalls.