12 Challenges Newbie Amazon Sellers Face and How to Overcome Them
Entering the Amazon marketplace as a new seller is both exciting and daunting. With endless opportunities to scale your business, you also face various challenges that can derail your progress if not handled wisely. At The We One, we understand the common pitfalls new sellers face and offer actionable solutions to navigate through them. Here are the top 12 challenges and how to overcome them:
1. Understanding Amazon Seller Central User Permissions
Amazon Seller Central is the hub for managing your seller account, but many newbies struggle with understanding user permissions. Granting the wrong level of access to employees or third-party service providers can jeopardize your business.
Solution: Familiarize yourself with the different user roles in Amazon Seller Central. For example, you can grant limited access to a virtual assistant while keeping financial data restricted. Regularly audit permissions to ensure compliance and security.
2. Navigating Amazon FBA Seller Responsibilities
Fulfillment by Amazon (FBA) simplifies logistics, but it comes with its own set of responsibilities, such as product preparation, labeling, and adhering to inventory requirements.
Solution: Educate yourself on Amazon’s FBA requirements and use tools like SellerApp to track inventory levels. Partner with reliable prep centers if you’re unable to manage product preparation yourself.
3. Handling User Permissions in Amazon Seller Central
Many sellers are unaware of how user permissions impact day-to-day operations. Mismanagement can lead to errors or even account suspension.
Solution: Assign permissions strategically. Use the “Manage Permissions” section in Seller Central to control who has access to listing updates, amazon sellers, inventory management, and financial reports.
4. Confusion Between FBA and SFP
Should you choose Fulfillment by Amazon (FBA) or Seller Fulfilled Prime (SFP)? Each comes with its own advantages and drawbacks.
Solution: Compare FBA and SFP based on your business model. FBA handles storage and shipping but comes with higher fees. SFP offers more control over shipping but requires you to meet strict delivery deadlines.
5. Competing Against Established Sellers
New sellers often feel overwhelmed by competing against seasoned sellers with thousands of reviews and established brand authority.
Solution: Focus on niche markets and provide exceptional customer service. Use Amazon’s “Product Opportunity Explorer” to identify low-competition products with high demand.
6. Understanding Amazon FBA Seller Duties
As an FBA seller, duties like inventory forecasting, price adjustments, and customer service can quickly become overwhelming.
Solution: Use automated tools like Helium 10 or Jungle Scout to manage pricing and inventory. Outsource customer service to ensure quick response times.
7. Creating Amazon Custom Products
Many new sellers overlook the potential of custom products on Amazon. However, offering personalized products can significantly boost sales.
Solution: Use Amazon’s “Customize Your Products” feature to let customers personalize items like mugs, T-shirts, or phone cases. Market these products on social media to increase visibility.
8. Managing Cash Flow
Cash flow management is a common challenge for new sellers who must invest in inventory, advertising, and operational costs upfront.
Solution: Plan your budget carefully and reinvest profits into the business. Consider using Amazon’s “Payability” service to access faster payouts.
9. Gaining Reviews and Ratings
Without reviews, new sellers often struggle to gain customer trust.
Solution: Use Amazon’s “Request a Review” button to encourage feedback. Provide excellent customer service to turn first-time buyers into loyal customers.
10. Understanding Tax Compliance
Amazon’s tax policies can be complex for new sellers, especially when dealing with multi-state tax collection.
Solution: Use Amazon’s Tax Collection Services and consult a tax professional to stay compliant.
11. Managing Advertising Campaigns
Amazon PPC (Pay-Per-Click) campaigns are essential but challenging for beginners.
Solution: Start with automatic campaigns to identify high-performing keywords. Gradually shift to manual campaigns to optimize ad spend.
12. Maintaining Work-Life Balance
The demands of managing an Amazon store can take a toll on your personal life.
Solution: Automate repetitive tasks and delegate where possible. Tools like Zoho or Asana can help you manage tasks effectively.
Conclusion
Starting as an Amazon seller is not without its hurdles, but with the right strategies, these challenges can be opportunities for growth. Whether it’s managing user permissions, navigating FBA responsibilities, or creating custom products, The We One is here to guide you every step of the way. Embrace these challenges, and watch your Amazon business thrive.
