Selling on Amazon: How to Overcome the Three Most Common Challenges

Amazon has revolutionized small and medium-sized enterprises. It is the first time that independently owned brands can have a shot to compete with the big giants by using the powerful marketing and e-commerce tools Amazon provides.

However, mastering the vast platform can take a lot of time and there are numerous risks that new brands are likely to encounter on Amazon.

From understanding and applying the platform’s complicated rules and restrictions on marketing and selling in this article, we will look at the challenges that Amazon sellers face and how they can overcome them.

Challenge 1: Product-Market Fit and Branding

If you’re planning to make the leap and sell your products on Amazon the first thing you need to be aware of are the limitations applicable to your business and your products.

There are a variety of ways that sellers purchase products for sale Some manufacture their own product that is unique while others purchase wholesale products from different brands, or they might purchase privately-label items from manufacturers or buy surplus stocks from other companies.

It is important to be aware of trademark and copyright laws, as well as what constitutes counterfeit goods, particularly in the case of re-sellers.

Amazon is in compliance with federal and local and state laws. read their guidelines on the proper representation of their brand and also their anti-counterfeiting guidelines.

Similar to business in general You must be certain that you have a market-to-product fit, and to ensure that you’re not copying established brands by selling knock-offs.

In the most extreme circumstances there is a risk of trademark infringement or policy violations that could lead to Amazon dismantling the counterfeit item and charging the seller for it.

Steps for Ensuring Product-Market Fit and Unique Brand

1. Demand assessment (search Amazon and other similar items to see the extent of an interest in your item, or whether it’s a saturated market.
2. Analysis of price: see what the prices for similar or comparable items are , and examine it in relation to the price you want to sell it at: will you still earn enough profit to offer it for sale at a lower value than other sellers?
3. Analysis of brand: see that your desired brand name isn’t already in use and is distinctive enough to not be confused with other brands. Do not try to imitate the trademarked brand, either physically or verbally, as it could be penalized.
4. Consistency of your brand: note that your brand isn’t just an empty space. Once you’ve established it, be sure that you have an effective digital presence outside of Amazon. Social media accounts as well as an expertly designed website are essential for building confidence with your customers.

Challenge 2: Setting the Operations Up for Success

After your brand and product performance are in place It’s time to set the system up in the right way – starting with the fundamentals. Let’s take a look at the options for platforms and needs to get up and running:

• The type of account. Choose if you are a private or professional seller. The first is 99 cents per sale, while the latter charges $399 per month. The type you choose will depend on the amount of product you’re likely to sell and also your margins of profit. Do your math!
• Settings for your account This is what Amazon will require: A credit card that’s accepted across the world as well as an account at a local bank that allows electronically transferred payments a residence address, local number and an US EIN number that anyone can obtain through the IRS even if you don’t own a company within the US.
• Know what you are able to offer. Amazon offers a wide range of prohibited products (such as tobacco, alcohol foods, organic food products, etc.) that require approval prior to listing the items. Learn about the list to ensure that no issues occur when you begin listing.

Operations 1-0-1

• List to allow shipping. Before you can send your items to FBA (fulfillment through Amazon Simply put the address of their warehouse) You’ll need to set up your listing but not yet active. You’ll need FBA since it is eligible for Prime 2-day shipping , which customers love.
• Taxation. Since sales tax rates vary by state, you’ll have to verify the local laws. It’s even more confusing that states have distinct laws regarding taxability of goods. In addition, you’ll have to apply for an exemption from sales tax.
• Acquire a UPC Code. Universal Product Code is essentially the equivalent of a barcode and you’ll need to purchase an UPC code to be added to the list and printed on labels.
• Design your own FBA shipment plan. Then, you’ll go through the steps of the platform to complete the shipping plan that will allow you to ship your item to the warehouse. Fill out the Hazmat (hazardous material) form if needed and can choose which shipping or postal option you and any third-party contractor would prefer. The most frequent errors in the shipping plan is not providing accurate information.

Challenge 3: Mastering Marketing

On Amazon It is essential to establish a loop in which your brand’s image drives sales. positive reviews lead to sales which, in turn, increase your brand’s credibility which, in turn results in sales.

How can you create that positive loop? Let’s look at an example of a case study and the steps you have to follow to create a strong brand, impressive listings, and profitable marketing campaigns.

Be aware that if you’re new to design and marketing this is among the easiest tasks to outsource to freelancers. Explore platforms such as Fiverr as well as Upwork in order to find the assistance you need.

Steps for Successful Marketing

1. Keywords 

Research is the most important factor to ensure the success of keywords. Check out similar listings with positive reviews, sales as well as the ads that are associated with those items. Don’t mislead people in the hope of generating traffic, as this can backfire since customers are more likely to bounce off, which can harm your SEO. 

When you write your title, think about what your customers would like to get to. For instance, if your company offers pool floats, your title could read: “Giant novelty pool floats, multiple options, kids and adults” to stay on target and still be informative.

• Images

The fastest way to turn off a potential customer is to present low-quality images or a small amount of your product. Do not include animations or illustrations however, they should represent a real product in the photographs. 

Do not cram multiple colors of a particular product into an image. Include them as distinct options. The specifications all images must meet 1000px in size by 1,000px, use 85 percent of the frame, save it in an JPEG, TIFF, or GIF or save it as an RGB color space. There are many additional rules that apply to naming conventions for images which is why we suggest reading them through in detail.

Campaigns: 

First, decide what you want to advertise and the goals you want to achieve. Most often, products that are popular and priced competitively can also perform in your campaigns. 

Amazon Advertisement for Sponsored Products Ads are ads for banners which are targeted according to keywords. They can be seen in search results or page details. 

A tip: there’s an online keyword tool for amazon that you can use to organize both your listings as well as the keywords you are targeting for. There are a variety of different ad types, ranging from video ads, to recommendations ads that you can put on your site.

Read More : Optimizing Listings: The Backbone of Amazon Optimization Services