On the American Amazon Marketplace, you can sell almost everything – beginners are sure. The reality is very different from this statement. We have compiled common mistakes that not only beginners but also experienced entrepreneurs make to help you build your success story on Amazon.
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Mistake No 1: Being sure that anything could be sold on Amazon, and in a short period of time.
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Amazon is not an endless opening for sales. The platform provides many opportunities, but in order to have the sales that you dream of you need to form the correct strategy and act in stages. To begin with, choose a niche.
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The time when demand was higher than supply has passed. Sales on Amazon will not flow like a cornucopia, just because you watched a video on YouTube about how to earn your first million. It is important to evaluate your product objectively and answer the question: "Does an American need my product?”. You can answer this question after a competent analysis of the market.
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Mistake No 2: Do not have a demand analysis
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Before entering the market of another country you need to study consumers’ needs. Your product may need to be adapted to this market.
It is important to study the sales volume in a particular category, identify the leaders and compare the prices of the product.
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Mistake No 3: Do not calculate the total return
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Amazon is mostly about mass-market. Expensive items show low sales. Price-based competition is the key to success. It is important to calculate what margin you can include in such conditions and take into account all the costs, which are production of goods, delivery to the United States, customs clearance, marketing, percentage of sales and delivery from Amazon warehouses. If after these calculations, it does not work out, on average, 25%, it is better not to go to the site.
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Mistake No 4: Open a business as an individual
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Technically, it is possible and some people even do that. If you are serious about business and want to solve issues from Seller Performance more easily, it is better to register an account for the company. Our extensive experience shows that advertising will work better in this case, and communication with support will be more effective. A company account is less likely to receive an invoice request.
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Our partners conducted an experiment with the same product, which was sold from an individual account and an account registered to an American company. In the second case, the business grew faster.
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Mistake No 5: Register a company and an Amazon account by yourself
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Registering a company and an Amazon account in the US has many pitfalls. Starting with the selection of the state, ending with the registration of documents, re-registration and confirmation of residence. It is therefore better to trust to professionals in the US, who will do everything quickly and efficiently.
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Some of our clients were locked and turned to us for a service after they had lost time and money.
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Mistake No 6: Being sure that it is easy to receive any type of certificate
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Amazon logistics is not always clear for beginners. You have to think about packing and delivery of your goods. Medicines, food, and even children's toys require certification. If a complaint is received about the product, the entire batch will be checked. In the case of non-compliance the entire product is at risk.
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You need to be on the alert with perishable products. For example, Amazon does not store melting goods in warehouses during the summer.
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Mistake No 7: Underestimate the description and pictures of goods
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A product page with high-quality photos in line with Amazon standards is the way to success.
Buyers are more likely to click on a search result when it has an attractive main image. The main photo is an important factor in the search result click-through rate (CTR).
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Vivid images inspire trust and can persuade customers to buy your product by improving product page conversion rates (CR). Customers follow a simple logic - if the image of the product is bad, then the product is the same.
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Amazon has minimum requirements for product images. Bad photos can cause the listing to be blocked. It is therefore important that the photos attract, emphasize the USP, and show the product and the possibilities of its use.
The next stage is the preparation of keywords. It would help Amazon to rank correctly the product in the search results, and the consumer will easily find it. The product description is read less, although its technical characteristics should not be neglected.
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As with Google, buyers on Amazon enter a keyword in the search. They go to products on the first page of the search, and rarely to products on the following pages. The higher your rating, the more you sell.
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Mistake No 8: Underestimate the importance of SEO and PPC
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SEO-optimization is a base and you cannot build a house on a bad foundation. It is important that your listing contains key phrases and words that a potential buyer can use to find the product.
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A pool of important keywords and phrases is often called the semantic core of a listing. This core is what the Amazon algorithm relies on through Amazon's internal PPC (Pay Per Click) advertising when promoting your listing.
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As soon as a potential buyer sees your product and considers it relevant, they will most likely click on the image and buy the product.
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The more you sell, the higher your rating. Hence, the more money you can invest in marketing will mean the more you can sell.
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Do not forget to analyze your competitors in the niche you choose. Determine what advertising channels your competitors use, what offers they make to their customers, or what criteria their listings can use to compete with yours.
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Social approving of your products is very important too, in this regard, pay attention to the number of competitor’s reviews.
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SEO and PPC are not conflicting tools that require a choice. The simultaneous launch of advertising campaigns and search engine optimization is a real Dream Team that will bring excellent results. All this may seem difficult for a beginner, but Ilia Prusenko and Vika Shirshovacan help you understand it. They have a great online workshop on SEO and PPC for Amazon.
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Mistake No 9: Be still and simply wait for the customers
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Reaching the top of the website is difficult, it requires time and money. Sometimes, it is cheaper to attract buyers from outside than inside the site. For example, from social networks or other online stores. In this case, the platform will only charge a commission for the storage and delivery of the goods.
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Mistake No 10: Do not collect the reviews
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Reviews are a key point in making a purchase decision on Amazon. If the product has few reviews or there are negative ones, then you cannot dream of high positions in the marketplace. Without reviews all the advertising will be ineffective.
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We hope our tips will help you to start a business on Amazon. Although, practice shows that it’s better to seek professional help from the very beginning. It saves you time, money, and minimizes the risk of failure. After all, everyone knows that a miser pays twice. Amazon is a complicated platform where every wrong action or random mistake can cost you a profit.
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We are always ready to offer you all the company registration services in the USA and Europe for successful trading on the most popular platform in the world.
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