DiFFreight Blog What Will Ruin Your Amazon Sales: Mistakes to Avoid

What Will Ruin Your Amazon Sales: Mistakes to Avoid

What Will Ruin Your Amazon Sales: Mistakes to Avoid

Amazon is a global aggregator where you can sell everything. Ukraine also has mini analogues of this platform in the form of Prom, Rozetka, Epicenter. But playing on Ukrainian platforms and on world platforms is a very big difference in income. After all, if you get to know Amazon, then earning $5,000-$10,000 will seem ridiculous to you. Because this site covers about 7 billion people, each of whom can become your potential client.

It is quite difficult for newcomers and startups to bring their product to the TOP and gain a competitive profit among players. Why? At the beginning of the journey, you can get lost with the product, it is not enough to understand the placement of the product in categories. And also make 5 serious mistakes that will block your path to becoming a successful Amazon entrepreneur. What are these mistakes and how to avoid them? We tell in the article.

Product certification was not checked

There is a group of goods that requires a large number of certificates confirming the production and quality of the products. For example: medical products, medicines, foodstuffs, fodder, cosmetics, bads. If you plan to become a manufacturer, consider what to create and sell - it just won't work like that. But to develop, document, issue, obtain permission certificates, find customers and only then sell — yes, everything is in your hands.

At the same time, do not forget that there may be restrictions on the marketplace itself. For example, in America, only US residents can sell products containing pesticides. Therefore, if you want to produce and sell products internationally, find a product category that is available for sale worldwide.

The company was not registered

As soon as you understand that your business is gaining momentum and sales are actively growing, register your enterprise as a company. Because conducting monetary transactions as an individual is prohibited both in Ukraine and in the world. Moreover, for this you can receive large fines and the risk of being closed at the beginning of the journey. It should also be noted that there is no such thing as a FOP in an Amazon account. But the site provides an opportunity to sell goods either as an individual or as a company. Why should you choose to be a company rather than an individual?

  1. In order not to overpay.
  2. To avoid paying income taxes.
  3. To make it easier with paperwork.

Let's give an example:

An individual earned $1,000. She will have $180 for taxes. And if you are a company, then you can first calculate all expenses, and then pay 15-20% of the profit. And if your expenses are from $1,000 to $600, then the amount of tax will be only $80.

The availability of the product in the database was not checked

You started selling a product, and later it turned out that a patent already exists for it. On the way out - you violate someone's intellectual property, and someone angry is waiting for you in court or filing a complaint. And Amazon blocks your profile. Business is destroyed, you are broke. Patent research will help avoid these problems.

And even if you are outraged by the fact that someone already has and has been selling the same product as you for a long time. All the same, it's a first mover's gain. Because Amazon will direct the dispute to the right holder of the trademark (first mover). Who will either make a deal with you, or allow you to sell goods under their brand for a %, or will do everything to have Amazon block your sales.

You sell in gray and counterfeit goods

Amazon will not allow you to do anything secretly, so if you try to fake a product or avoid % payments, expect severe punishment. Your account will be blocked, and it will be impossible to withdraw the earned money from the platform. Gray methods of promotion are about cheating reviews, bad reviews on competitors. Such actions are quickly tracked and also — the account is blocked, and the product can be disposed of.

Not taking into account taxes and transaction costs

Timely financial reporting and payment of taxes in other countries is a guarantee of successful and calm business conduct. Therefore, check your tax number, send reports to it and avoid fines.

Do not forget that Amazon is a difficult platform for most buyers, because there are problems when making international payments. Moreover, if the supplier is located in Asia, China or India, then transaction costs reach 7%. To avoid resentment from customers and stop losing money, choose payment systems that will allow you to receive payments from Amazon without commission.

Delivery to Amazon warehouse in the USA
Get more information

Not Researching the Market

Selling products without understanding demand, competition, and potential profitability — and you’ll simply get stuck with unsellable inventory. That’s why you should conduct quality market research before purchasing. If you’re not sure you can beat competitors’ offers, find another product.

Ignoring Reviews and Feedback

Pay attention to what customers say and resolve issues or improve your products. Sales on Amazon heavily depend on the ratings of your customers. Seeing a negative review, a potential buyer will decide not to risk it and will order from a competitor. That’s why fast delivery of product to Amazon warehouse in Europe is important so the customer doesn't have to wait.

Ineffective Listing Optimization

Like any marketplace, Amazon requires quality product descriptions. You can optimize titles, add detailed specifications and high-quality images. A well-optimized listing is key to driving traffic and increasing sales.

Ineffective Inventory Management

Proper inventory management helps avoid problems. There are two models:

  • FBM (Fulfillment by Merchant) — the seller stores the goods, packs, and ships orders to customers independently.
  • FBA (Fulfillment by Amazon) — the seller ships goods to Amazon in the US or Europe, and the marketplace handles storage, packaging, delivery, and customer service.

In the first case, you’ll need to manage inventory, hire and train staff, find a warehouse — but you don’t pay the platform. In the second case, Amazon takes care of logistics and storage, but it's a paid service.

Poor Customer Service

Delayed responses to inquiries or inability to resolve issues lead to negative reviews. If there are too many, your account will be suspended. Quality support contributes to a positive reputation, so provide maximum customer-oriented service.

How to Sell Successfully on Amazon

To make good profits on Amazon, it’s important to follow platform rules and legal regulations. Of course, keeping all the nuances in mind is difficult and can lead to problems. In this case, the best option is to work with an intermediary company like DiFFreight. We specialize in logistics and customs clearance for Amazon sellers, so working with us will significantly simplify your operations and optimize your business:

  • DiFFreight takes care of the entire process of delivering goods from the supplier to the Amazon warehouse, including customs clearance and obtaining necessary certificates.
  • We have been working in the logistics services market for a long time, so the delivery of cargo from Ukraine to the USA with us will be carried out at favorable rates.
  • Our managers know all Amazon requirements and will help prepare your goods accordingly.
  • If any problems arise with delivery or customs, contact us immediately and we’ll easily resolve any issues.

Calculate all costs and the profitability of your product to make your business profitable within the first 1–2 months of sales. Don’t forget to include logistics service costs. And leave the entire delivery process to us. We know how to work with Amazon since we provide delivery to Amazon FBA, so we’ll help you understand, set up shipping, and successfully launch your business.

Useful articles on our blog
How to Buy on 1688 Independently and Without Intermediaries: Advantages and Nuances
How to Buy on 1688 Independently and Without Intermediaries: Advantages and Nuances Read article
Icon
Oversized Cargo Dimensions
Oversized Cargo Dimensions Read article
Icon
Mistakes in business with China that should be avoided
Mistakes in business with China that should be avoided Read article
Icon