Avoiding Common Pitfalls: Lessons from Failed Amazon Sellers

Read about the challenges faced by Amazon sellers and learn valuable tips to avoid common pitfalls. From market research to fulfillment strategies to product photography, this insightful guide will help you succeed in the competitive world of selling on Amazon. Don't miss out on the opportunity to build a thriving online business!

Isiah Kurz

November 17, 2023

Entrepreneurs from all walks of life embark on the thrilling journey of becoming Amazon sellers, enticed by the promise of financial independence and global reach for their products. But not all Amazon seller stories end in triumph. Many aspiring sellers find themselves facing unexpected hurdles and pitfalls, leading to the demise of their Amazon ventures.

To keep yourself from falling short of your goals, here are a few cautionary tips to save yourself from falling into common pitfalls for Amazon sellers. Brace yourself for success!

Neglecting Market Research

Picture this: You've got a brilliant product idea, and you dive headfirst into selling it on Amazon. Weeks pass, and your product remains unnoticed, buried beneath a sea of similar offerings. What went wrong? It could be a lack of market research.

Successful Amazon sellers meticulously analyze market trends, identify niche opportunities, and understand their target audience. Avoid this pitfall by investing time in comprehensive market research before launching your product on Amazon. Examples include:

Knowing your competitors. See what your closest competitors are selling. Identify gaps in their offerings that you can take advantage of. Or take a moment to understand why their best sellers perform so well.
Understand customer preferences. Read customer reviews of similar products to determine what shoppers are likely to buy.
Pinpoint the gaps you can fill. Investigate search trends. Are there keywords with lots of volume but too few sellers filling that niche? This might be a good opportunity for you.

Ignoring Fulfillment Strategies

Amazon offers Fulfillment by Amazon (FBA) services, allowing sellers to store products in Amazon's fulfillment centers. Failed sellers often overlook the benefits of FBA, choosing instead to handle shipping and customer service themselves. This leads to logistical nightmares and dissatisfied customers.

One of the consumer benefits Amazon offers is fast shipping. Too little or no inventory in FBA can result in lagged shipping times. In this case, some shoppers will bounce off your listing and go to a competitor instead. This is problematic for two reasons: it reduces your conversion rate and gives your competition a boost.

Conversion rates are crucial metrics that influence your discoverability on search result pages. To enhance your operations, consider adopting FBA. This will help streamline your processes, ensuring timely deliveries, efficient customer service, and favorable reviews. Ultimately, satisfied customers are more likely to become repeat customers.

An Amazon data analytics graph looking at FBA inventory by size variant.

Conversely, some sellers put too much stock into FBA. This results in overspending. The key? Keep top sellers in FBA and use third-party logistics (3PL) for other inventory. The same can be said for seasonal products. Yes, some shoppers might want swimsuits in the winter, but is that really worth overspending on FBA? Probably not.

Underestimating the Importance of Product Photography

In the digital realm, first impressions matter. Grainy, poorly lit product images can turn away potential buyers faster than you can say "Amazon Prime." Invest in high-quality, professional product photography to showcase your offerings in the best light.

Notice how this image includes some of the product benefits along with the product itself.

Clear, visually appealing images not only attract customers but also build trust in your brand. After all, no one wants to buy from a seller who can't even present their products well.

An example of a high-quality product image, complete with someone using the product and gift box.

Beyond snapshots of the product themselves, get creative with images of customers using your products, explanations of their value, or showcase things that target specific keywords relevant to your niche.

Neglecting Customer Reviews

Customer reviews are the lifeblood of your Amazon business. They serve as social proof, influencing potential buyers and establishing your credibility as a seller. Failing to manage reviews or, worse, ignoring negative feedback can be catastrophic.

Encourage satisfied customers to leave positive reviews (within the terms of service, of course) and promptly address any issues raised by unhappy buyers. Engage with your customers, show them you care, and watch your reputation soar.

Not to mention, customer reviews could spark ideas for new products, new variations, or necessary details to clarify in your listings.

Disregarding Keyword Optimization

Ah, the power of keywords! Neglecting SEO optimization means your products might remain invisible to potential buyers. Integrate relevant keywords into your product titles, descriptions, and backend search terms. Think like your customers. What terms would they use to find products similar to yours? Incorporate those keywords strategically to enhance your product's visibility and increase the likelihood of sales.

Here are some of the common Amazon keyword tools for sellers:

Helium 10: Specifically, Magnet is H10’s free tool that provides search volume data for millions of keywords.
SellerApp: A popular Amazon keyword research tool with various features, including a keyword search tool, rank tracker, and competitor analysis. Its free version offers limited features.
Keyword Inspector: A free cloud-based Amazon keyword research tool.
MerchantWords: A paid keyword research tool created for Amazon sellers.‍
Ahrefs: A paid keyword research tool that can be used to find keywords for Amazon listings.

Failing to Take Advantage of Amazon Data Analytics Tools

Data analytics tools are valuable for Amazon sellers as they provide actionable insights regarding what’s working and what needs improvement.

Junglytics offers customizable data analytic software for Amazon sellers. This is leaps and bounds better than Amazon Seller Central because users can deep dive into their data like never before. Sellers can get down to the product, variation, and region level to see exactly what’s winning and what’s holding the business back.

A data analytics dashboard from Junglytics showing cost per click by product line.

With more than 40+ metrics, easy-to-use custom dashboards, filters to focus on what matters most, and four years of data tracking, Junglytics stands out as a fantastic data analytics tool for sellers who want to succeed.

Are Ready to Succeed as an Amazon Seller?

Becoming a successful Amazon seller is not merely about having a great product; it's about strategy, persistence, and adaptability. Learn from the mistakes of those who faltered, and pave your path to success.

Stop guessing and start knowing: See a Live Demo of Junglytics.

And check out our content in the Junglytics blog.

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