Amazon Do’s & Don’ts for New Sellers

Embarking on your journey as a new Amazon seller can feel like navigating uncharted waters. With vast potential for success, it’s equally important to be aware of the possible pitfalls that could hurt your venture. 

These do’s and don’ts offer a roadmap to harnessing your brand’s potential on Amazon while adeptly avoiding common mistakes. Don’t settle for simply surviving. Instead, craft a plan to thrive that’s guided by advice built on decades of experience. 

DO have a pricing strategy 

A well-considered pricing strategy is crucial for new Amazon sellers to compete effectively. Your pricing directly impacts your product’s visibility in Amazon’s search results, as the algorithm favors good value offerings. A competitive price can also increase traffic to your listings and influence customer purchase decisions. However, it’s not about being the cheapest; it involves understanding all selling costs – production, shipping, Amazon fees, marketing – and setting a price that covers these while ensuring profit. Your strategy should be dynamic, adjusting to factors like demand, seasonality and competitor pricing for swift market response.

DON’T fall victim to novice mistakes 

Avoiding common pitfalls that derail new sellers starts with thorough research to understand the market demand and competition for your product. Don’t rush to list without clearly understanding your target customers’ needs and pricing expectations. Make sure to account for all costs, including production, shipping and Amazon fees, when pricing your product. Underestimating these costs can lead to significant losses. Ensure your product listings are optimized with accurate descriptions and high-quality images to attract potential buyers and remember to deliver excellent customer service. It’s the best way to build a reputation and earn positive reviews that significantly influence buyer decisions.

DO understand your Amazon marketing and advertising options 

Understanding Amazon’s marketing and advertising options is essential for new sellers to enhance visibility and boost sales. Sponsored Products, an Amazon tool, allows you to promote individual listings, making your products more discoverable. An Amazon Store lets you create a branded storefront, enhancing customer experience. Amazon Advertising also offers display ads and video ads, allowing you to reach customers on and off Amazon. Using these tools effectively can help you target the right audience, increase product visibility, and drive more traffic to your listings. However, effective use of these options requires a clear understanding of your target market and constant monitoring and adjusting based on performance data.

DON’T neglect proper inventory management

Poor inventory management can have severe consequences for new Amazon sellers. If you run out of stock, you risk losing sales and damaging your seller reputation. Furthermore, Amazon’s algorithm favors listings that consistently stay in stock, meaning your product could lose visibility in search rankings during stockouts. On the flip side, overstocking increases storage costs and potential losses if products don’t sell as anticipated. Improper inventory management can also lead to order cancellations if you can’t fulfill orders, which negatively impacts your seller performance metrics and can result in penalties from Amazon. That’s why effective inventory management is fundamental to maintaining profitability and customer satisfaction.

DO account for Amazon’s fee structure

Amazon’s fee structure can be a challenge for new sellers seeking a foothold in the largest e-commerce marketplace. The various Amazon fees, including referral fees (a percentage of the selling price), variable closing fees for media items, and fulfillment fees for using FBA, can be complicated to understand. There are also storage fees for keeping your products in Amazon’s warehouses. Together, these costs can add up and significantly impact your profit margins if not taken into account when pricing your products. A failure to understand and anticipate these fees can lead to unexpected costs, lower profits, or even losses. Therefore, gaining a comprehensive understanding of Amazon’s fee structure is essential before setting competitive and profitable prices for your products.

DON’T ignore customer feedback

Ignoring customer feedback is one of the most detrimental mistakes a new Amazon seller can make. Feedback is a direct line to your customers’ thoughts and experiences, providing valuable insights into product quality, delivery, and customer service. If addressed promptly and professionally, negative feedback can turn dissatisfied customers into loyal ones. Positive feedback boosts your reputation and attracts more buyers. Moreover, Amazon uses customer feedback as a factor in ranking sellers. A high feedback score improves your visibility on the platform, while consistently poor feedback can lead to penalties, including suspension. Paying attention to and learning from customer feedback is vital for maintaining high service standards and enhancing your business’s success on Amazon.

DO monitor your competition

Monitoring competition is important for new Amazon sellers looking to succeed. Understanding what similar products are available, their pricing strategies, customer reviews, and overall performance can provide crucial insights into market trends and customer preferences. It helps you to position your products effectively, set competitive prices, and identify areas for improvement. If a competitor frequently runs out of stock or has poor reviews, you have an opportunity to fill that gap. Ignoring competition can result in overpricing or underpricing your products, offering less desirable features, or missing out on market trends, all leading to potential loss of sales. Analyzing your competition is a strategic move you must embrace to ensure your business’s success on Amazon.

DON’T compete solely on price

Competing solely on price is a trap for many new Amazon sellers. This approach can lead to a race to the bottom, eroding profit margins and making it difficult to sustain your business in the long term. Moreover, it’s a misconception that the Buy Box works on the lowest price; other factors like seller performance and shipping options also influence who wins it. More importantly, customers don’t just buy based on price; they consider product quality, brand reputation, and customer service. Consider that some sellers might have more cost-efficient production or distribution processes, allowing them to sell at lower prices without sacrificing profitability. Instead of focusing only on price, aim for a balanced strategy considering product differentiation, customer satisfaction, and sound financial management.

DO invest in high-quality content and photography

Investing in high-quality content and photography is crucial for new Amazon sellers as it significantly influences a buyer’s decision. Clear, professional photos showcase your product’s features and quality, helping customers understand what they’re purchasing. Good photography reduces returns due to misinterpretation and reinforces trust in your brand. Also, well-written, informative content not only persuades buyers but also improves your product listing’s SEO, making it easier for potential customers to find your products. It allows you to highlight unique selling points and answer common customer queries. Neglecting content and photography typically results in lower visibility, fewer sales, and dissatisfied customers. 

DON’T take mobile optimization for granted

Mobile optimization is critical because a significant percentage of online shopping is done via mobile devices. If your product listings are not optimized for mobile, potential customers may struggle to view images, read descriptions, or complete purchases, leading to a frustrating experience and lost sales. An optimized mobile listing ensures quick loading times, easy readability, and seamless navigation, all of which enhance customer experience and increase the likelihood of conversions. Ignoring this can put you at a disadvantage in the competitive Amazon marketplace, where every aspect of customer experience counts.

DO build a brand beyond Amazon

New Amazon sellers will benefit from building a brand reputation beyond Amazon. It enhances customer trust and loyalty, crucial factors in driving repeat purchases. A strong brand presence outside Amazon via social media, a dedicated website, or other online platforms enables you to control your narrative and engage directly with your customers. It also diversifies your sales channels, reducing reliance on Amazon’s platform and policies. Moreover, a recognizable brand can command higher prices and help your products stand out. Additionally, having a well-established brand can mitigate negative impacts if your Amazon account faces issues or restrictions. In short, brand building beyond Amazon provides greater business stability, customer engagement, and market differentiation.

DON’T expand too much or too quickly

Expanding too quickly or extensively as an Amazon seller can lead to several unwanted challenges. First, managing a larger inventory might overwhelm your logistics, leading to delays or errors in fulfillment and damage to your seller reputation. In addition, rapid expansion may stretch your financial resources thin, inducing cash flow problems. Trying to sell in multiple categories or markets without understanding them well could also result in poor sales and wasted investment. Most importantly, the quality of customer service could suffer if you’re not prepared to handle the increased demand, leading to negative reviews and lower rankings. Instead, plan to pursue controlled, gradual growth that allows for better risk management, stronger customer relationships, and more sustainable success.

Winning on Amazon is easier with the right partner 

The team at Amify stands ready to assist you with a potent combination of best-in-class tools and invaluable experience. We understand the intricacies of selling on Amazon and can help you capitalize on opportunities and turn potential pitfalls into stepping stones for success. 

Schedule a free consultation with our Amazon experts today, and let us show you how we can accelerate your Amazon selling journey. Your path to success starts with Amify.