In the e-commerce world, Amazon’s marketplace must be an integral part of your business strategy. Because if you do not sell on it, your competitors will.
But there is a right and a wrong way to sell on Amazon.
The right way will win new customers, grow your business and place you for long-term success. The wrong way will cost you money, damage your reputation and potentially get you kicked out of the site.
To help you avoid the most common pitfalls, we discuss the most damaging Amazon sales pitches and the strategies you can use to avoid them.
Amazon Seller Mistake # 1 – Improper Advertising Optimization
Just like how your site should be optimized for search engines, so do your product listings. Product listing optimization helps you maximize conversions, improve search results, and increase profitability.
The good news is that Amazon’s search algorithm (A9) follows a more straightforward formula than web-based SEO algorithms. This is because the A9 has a main focus – to connect buyers and sellers. Because of this, your listing optimization should help potential buyers find and then understand your products.
Despite its theoretical simplicity, far too many salespeople easily make mistakes when listing optimization. As the Marketing-Ideas notes, the most common of these includes: 1
Does not maximize indexing opportunities Incomplete keyword survey Keyword stuffing titles Failure to incorporate customer reviews and questions Eschewing videos Poor image utilization
So what are some best practices?
To satisfy the A9, you need to focus on two key ideas: Relevance and Performance.
Relevance – Keywords are crucial for placement. Not only do you need to include relevant keywords on the page, but you should also focus on including them in: Product title Backend keywords Product description and bullet points Performance – The way your pages look and how customers interact with them affects rankings. Side elements you should play with include: Product prices Customer review Product images Product video
Amazon Seller Mistake # 2 – Breaking the Rules
By signing up, you agree to abide by Amazon’s policies and rules. Failure to comply with Amazon’s policy can have rigid consequences, especially as a seller’s actions may reflect negatively on Amazon’s reputation. Should that happen, Amazon will not hesitate to close your merchant account, thus preventing you from reaching a massive consumer base and disrupting a major source of revenue.
Although Amazon judges rule on case-by-case violations, common reasons why sellers have been banned in the past include:
Product Quality Issues-Amazon’s success depends on consumers’ confidence that when they shop on the eCommerce site, they expect to receive a high quality product. Repeated failure to meet these expectations will inevitably lead to consequences. Common quality issues include: Sale of counterfeit goods Sale of cheap goods Sale of prohibited goods Violation of copyright laws Lack of certification Shipping problems – Similarly, Amazon has a reputation for ensuring that products ordered on their site arrive on time and arrive as advertised. Late shipments or canceled orders are frowned upon. Learn more about Amazon shipping on our site. Poor customer reviews – Often the first two questions affect this. But lack of communication between seller and customer only exacerbates these problems. Should a seller receive enough negative reviews, it can easily result in a ban. In the same way, integrity is important. If you get caught buying customer reviews, you will be immediately kicked off the platform. Violation of Listing Guidelines – There are rules for how to properly list items on Amazon. If your product information page violates the rules or provides misleading information, Amazon may terminate your page. Having Multiple Accounts or Selling an Account – When selling on Amazon, only do so through a single account. And it must be yours. The company expects honesty about who you are, what you sell, and who you sell to. Selling that account violates the contract you entered into with Amazon.
Before you start selling, research Amazon’s program policies page thoroughly and then abide by your sales agreement.
Amazon Seller Mistake # 3 – Direct Customers to Your Site
While this may technically fall under the previous category of Amazon guidelines, it deserves its own place.
In short, Amazon does not welcome competition. It does it well – but it does not allow you to use its site for personal advertising or to drive sales away from the site. Even if you operate on Amazon, it may reduce your chances of retargeting or pushing branding, but it’s a trade-off you make to access its massive shopping base.
Occasionally, sellers will enter the URL of their website store in the product list. This is a clear Amazon policy violation and may result in a ban. Similarly, if you use Amazon’s name, trademarks or sales as Prime Day on your site, but do not have links that lead directly to Amazon, you can expect the site to take prompt action.
Amazon Seller Mistake # 4 – Failure to use Amazon PPC
Amazon gives sellers access to a built-in pay-per-click (PPC) advertising system. This is a tool that far too many salespeople fail to utilize. But this represents an opportunity for you to create a competitive advantage.
For a modest fee, you have the means to instantly get your product in front of customers. In addition to rapid market entry, Amazon’s PPC dashboard makes it easy to measure and track results, fits in well with other marketing channels, and offers a wealth of useful consumer data and insights. You can use Amazon PPC to increase sponsored products to the top, increase sales and improve your rankings.
This can help with several specific aspects of sales: 2
Drive increased traffic to holiday sales like Black Friday, Cyber Monday, Christmas and Amazon Prime Day. Promote brand awareness and cross-selling of complementary products in your product catalog. Launching new products or help with products in competitive categories stands out.
Amazon Seller Error # 5 – Stock Overorder
A common concern for sellers is that they run out of stock in case of a demand. After all, who wants to run out of product when customers demand that they get their hands on it? Many salespeople also hope to reduce their cost per item. Unit by ordering in bulk.
If you handle fulfillment on your own, how much stock you have is up to you. Being crowded can affect your cash flow, but it’s your business decision.
However, if you are a seller whose products are compliant with Amazon (FBA), it may cost you to have too much stock. So what is Amazon FBA? An Amazon FBA seller pays for Amazon to stock their goods. When the stock picks up dust on the shelves, you lose money instead of picking it up. If items also sit in an Amazon warehouse for more than a year, there are additional fees.
Sellers should always seek to maintain a stock level that falls into the Goldilocks zone; not too little, not too much – quite right. And inventory forecasts, especially using automated software, can help you achieve that.
As Harvard Business Review notes: 3
Advanced machine learning and optimization algorithms can look for and exploit observed patterns, correlations and relationships between data elements and supply chain decisions – e.g. When to order a widget, how many widgets to order, where to place them, etc. Such algorithms can be trained and tested using previous data. They can then be implemented and evaluated for performance robustness based on actual realizations of customer requirements. ”
Consider using automated tools to manage your inventory forecast. Not only will this provide an accurate picture of current and future needs, but you will also be able to spend the hours you have spent managing inventory for other critical areas of your business.
Amazon Seller Mistake # 6 – Withdrawal of VAT
When selling on Amazon, include VAT in the price. Otherwise, it is you who has to pay for it.
For a nominal fee, Amazon allows you to charge state tax on all your orders. Otherwise, you can reach the end of the year, only to discover that there is a significant unfunded liability that has to be paid out of own pocket and that eats into your margins.
To avoid this problem, fill in “Tax Settings” in Seller Central right after signing up for the account.
Amazon Seller Mistake # 7 – Poor Customer Service
Even if you are an Amazon FBA seller – which means that Amazon will handle a significant portion of returns and customer service – it is still important that you respond to customer inquiries and reviews. If you take more than 24 hours to respond, Amazon will take note and it will be a badge on your account.
In the same way, it is important that you read, respond and then respond to feedback from customers. This is not only good customer service habits, but it allows you to improve your product and your services. Negative feedback can be especially useful for a company that constantly wants to optimize.
Sell on Amazon the right way
There is no doubt that significant competition and saturation make it difficult to sell on Amazon. Almost all B2C companies have made it a key aspect of their success strategy. Therefore, you can not afford to make mistakes that jeopardize your chances of competing. To learn more about Amazon Business Services, visit our site for more information on what is Prime Wardrobe or a breakdown of Amazon moments.
Need help creating an Amazon selling strategy?
Here at Marketing-Ideas, we have the tools and expertise to help you build a customized Amazon digital marketing and growth strategy. Together, we can instill growth-driven practices and systems.
How does it look? Contact us today to see what we can do for you.
Search engine journal. 10 Top Amazon Listing Optimization Mistakes and Hidden Options. https://www.Marketing-Ideas.org/amazon-listing-optimization-mistakes-opportunities/398458/#close Sponsored Profit. Are you running Amazon campaigns during the holidays? https://www.sponsoredprofit.com/blog/Amazon-promotions-holidays-2020 Harvard Business Review. Inventory management in the Big Data age. https://hbr.org/2015/06/inventory-management-in-the-age-of-big-data