Biggest Mistakes That Ecommerce Businesses Make on Amazon

Mathew Johnson January 6, 2022

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In the present day the majority of consumers conduct the majority buying online and there’s an e-commerce site that is more popular than Amazon. You can purchase nearly everything on Amazon at a reasonable price with lightning-fast 2-day delivery.

Although Amazon is a giant in e-commerce, it’s not always straightforward to sell your goods there. Here are the top five errors companies make when selling on Amazon that are significant, the reasons for them and what you can do to avoid these mistakes.

1. Having no pricing and fulfillment strategy

Businesses that sell on Amazon require properly planned pricing and fulfillment strategies to succeed. Fulfillment and pricing are the two main elements that determine whether you’re winning in the Buy Box on Amazon.

In the current era of COVID-19, what do Amazon sellers fear with the coronavirus? Over a third of them have had to fight to keep their same sales. Today more than before, it’s vital to Amazon sellers to know how they can improve their product listings as well as fulfillment of orders.

What should I consider when choosing the best pricing method?

Your pricing method you decide to use for your products and brand will be based on a variety of variables. The type of manufacturer you are, retailer, brand owner or an exclusive retailer and the kind of competition and your position within the marketplace will determine the pricing strategy you’ll use for your product.

There’s no method to define a pricing plan for every business on Amazon. However, you should know that it’s going to require some testing and measuring to determine the best price for your company and products.

What is the manual price?

Manual pricing allows you to alter prices of products at any time. If you find that your competitors have the same product at a lower price cost, you may lower the cost that you offer at any point. The price of your product is not automatically adjusted by this method which means you’ll be more in control of being able to win in the Buy Box. Price changes are dependent on your physical and by manually observing the competitors.

How do you define rule-based pricing?

Rule-based pricing lets you streamline your pricing by giving Amazon to keep track of the price of your competitors and altering your price according to that. For instance, you could make a rule that will keep your price between or lower than the lowest market price for your product increasing your odds that you will win your prize in the Buy Box.

What do I have to do with the fulfillment choices I have on Amazon?

Amazon fulfillment of orders is the process of picking up, packing and shipping for online purchases to a final consumer, or, more in simple terms, the process of getting your product in front of the customer. The fulfillment option is three available to Amazon sellers, and each is dealt with in a different manner.

Fulfillment by Amazon (FBA)

Fulfillment through Amazon refers to Amazon distributes and stores your products in accordance with the standards of Amazon. If you use this method, you’ll get the sought-after Prime status and will be entitled to one or two day shipping. Another thing to think about is that you’ll lose the control of your branding inside the box that customers receive. Your products will arrive with a smiley Amazon-branded box.

Seller-Fulfilled Prime (SFP)

Seller-Fulfilled Prime is the term used to describe the process of being accountable for the warehousing as well as shipping items. This also lets you achieve Prime Status so long as you’re in a position to comply with Amazon’s strict fulfillment requirements.

This will help you avoid the FBA costs that you’d pay from Amazon. But, complying with Amazon’s stringent requirements for shipping can be costly particularly if you just have one delivery location within the US. Certain 3PL (3PL) companies can assist in reducing shipping costs, while allowing companies to offer Amazon Prime with Seller Fulfilled.

Fulfilled by Merchant (FBM)

Fulfilled by Merchant is when you store and ship your own items (or a 3PL can do this). This approach doesn’t allow you to get Prime Status, however you’ll be able to decide your own online shipping timings and also have full control over the message of your brand because your products won’t be bound to Amazon’s packaging.

2. Having no product listing strategy

Your product listing is crucial in helping consumers decide whether or not to purchase your product, therefore it’s crucial to have an effective strategy for listing your products that is effective. Here are some key areas of your listing to consider to ensure success.

Keywords

Be sure to use relevant keywords in your listing, since these will determine the kind of search terms you’re appearing in.

Completeness

Make sure you fill in all the information you can when you’re creating your product’s listing, since Amazon prefers listings with complete details. Additionally, the more details customers have on your product in advance the more likely they will be to purchase.

It is also important to be careful when transmitting your feed directly from your site. Certain Amazon fields aren’t found in standard feeds for products and therefore would be empty. Make sure that you fill out every field that is required.

Additional content

Use enhanced content from your brand to present your product in a distinctive method. This feature allows you to include pictures and text in the description of your product to tell a greater narrative regarding your item. For instance, you can include an infographic on the best way you can use your product within the listing of the product.

Making your product listing titles more appealing for the user

Apart from making you look good on Amazon and other customers, you must also make sure that your ads attract consumers. Here are some crucial ways to boost the conversion rate of your clicks and click throughs.

Titles

It is essential to strike an equilibrium between keyword relevance and readability in your listing title. The title of your product should include the most crucial details, such as keywords and details about the product, yet be short enough that buyers are willing to read the entire title.

Other information you should include on the titles are your brand’s name, product’s name, and any specific details about the product. When you’re using Amazon Ads check the titles to determine if Amazon will cut off the title in order to ensure all the important info remains accessible to buyers.

Informative descriptions

Your descriptions must clearly convey distinctive value propositions and characteristics. Include the most important benefits and features, and clearly define what makes your product from the competition. A clear description (and clearly defined names) to describe your items will aid in reducing the risk of negative reviews and returns.

HD images and videos

The image you use as your featured product will be the one that draws the attention of a buyer and will allow your product to be noticed. Be sure your featured image is high-definition and clearly conveys what your product is.

Pictures are also crucial after an interested buyer clicks the product’s listing and they could be the decisive factor in whether or not a buyer decides to purchase.

Your photos should showcase your product from various perspectives and show your product in real-life situations to help consumers get an understanding of how the product will work in their daily lives.

If the listing you have on Amazon permits the upload of product videos make sure you do it. Videos that present the 360-degree view of your product along with instructions for installation or usage are among the most useful items to display.

3. Not advertising on Amazon at all

It’s difficult to make your products visible on Amazon and stand out from your competition enough so that many companies choose to avoid advertising on the platform in totality. Amazon has its own online marketplace , and even if you’re not announcing there you will not be able to access it. Here are a few advantages from using the advertising platform.

Make conversions more efficient

Amazon Ads have exceptionally high conversion rates. The average conversion rate for Amazon pay-per-click advertisements is 10 percent. When compared to other platforms for advertising it’s a great rate! Customers who shop through Amazon already have a high purchase intention, which makes it much easier to boost profits by using paid ads.

Increase your rankings

Advertisement on Amazon has proven to have an impact on the performance of your business organically. If you are selling more, your rank rises. The organic rankings on Amazon change frequently all day long, therefore make sure to evaluate and monitor the effect your advertisements and sales have on the organic traffic you receive.

Find out more about you by more people

If you’re not advertising with Amazon You’re missing out on a potential market share. It’s been reported that 42 percent of Amazon customers never go beyond their first landing page. If you’re not appearing organically on the first page, you’ll miss more than half of all buyers.

Beat your competitors

The advertising market on Amazon isn’t so crowded that you could be the first to market. While there are millions of companies already using Amazon and its platform, it has seen an enormous increase in sales year-over year with people purchasing more online. Despite this however, competition remains minimal in Amazon Ads and there’s room for new companies to establish themselves.

Conclusion

If you’re planning to sell on Amazon Make sure that all your plans are effective as they can get. If you’re finding that you require assistance in determining the perfect method, contact an experienced Amazon advertising partner such as Logical Position to help you maximize your potential on the platform.