Top 5 Mistakes when Selling on Amazon FBA
Monday 25th March 2019 | View all Blogs

Businesses that are based on Fulfilment by Amazon can often return a great income, but how

Reports have suggested that the FBA program has seen continual increases over the years, returning a growth of 65% in 2014 alone. 

While you strive to succeed, you would certainly have to work hard to achieve this.

Realistically, you can't just send a pallet to Amazon and assume that the job is as good as done. 

Here are some of the most common Amazon FBA mistakes and how to avoid them! 

1. Slacking On The Homework Front

Many people who want to become FBA sellers believe that they have little or nothing to do and that their business will simply prosper away.

But before you book an Amazon pallet delivery, you need to know that knowledge is indeed power. 

You need to learn everything there is to know about restrictions, Amazon categories, certain fees, finding profitable niches, and so on - really, the list goes on and on.

Essentially, you have to become an expert when it comes to Amazon FBA well before you start planning your first of many shipments.  

2. Taking Too Many Risks

In order to take calculated risks, you have to be aware of everything that's going around in terms of Fulfilment by Amazon.

You have to understand the risks that each category of products comes with, as well as the risks associated with deliveries.

For example, you wouldn't want a single truck to deliver just one or two of your pallets when you can rely on Amazon Lower than TruckLoad instead. 

But, keep in mind that it is never recommended that you take calculated risks when the stakes are too high.

If you are trying something new that also comes with a certain degree of risk, it works out better if you settle for the things that have lower stakes. 

3. Being Too Afraid To Invest

When it comes to services and FBA, you have a lot of options available.

However, one of the most common Amazon FBA mistakes is when sellers pass on a certain service simply because they think it is either too expensive or they might have a free or slightly cheaper alternative. 

If you want your business to be successful, you mustn't be afraid to invest some of the money you earn into it.

You should prepare to spend money on fees, services or tools that can help you increase profit and make more money through FBA. 

Aim to start your business with the mindset that investing money will earn you more money in the long run.

Remember, smart money makes more money. 

4. Dismissing Proper Data Analysis

This particular mistake is easily avoided. If you make purchases and plan to sell on Amazon by analysing only today's data (in terms of sales rank and cost), you will eventually end up with a full inventory that can prove quite difficult to sell. 

Purchasing decisions should be made based on historical sales rank and pricing data.

You must rely on trends as little as possible as they may die down in a day or two. Also, if you are at the beginning of your road, you should rely on the products that are known to be in high demand throughout the year. 

5. Allocating Only One Person!

Most sellers believe that they can do everything it takes to make their business successful on their own.

Obviously, this is amongst the most common Amazon mistakes! Many aspects required to run an FBA business are, in fact, minimum wage jobs. 

As your business evolves, you will not be able to fit every necessary role. Instead, you will need to work as a team.

You might want to start outsourcing the following: your Amazon back end tasks, preparing, packing and shipping, product repricing, the bulk of OA sourcing, RA sourcing and even your Amazon feedback managament. 

You do have to work hard, but you have to think smart at the same time. Handle your FBA business in the most effective way possible and you will avoid the common Amazon mistakes when selling on Amazon altogether. 

The Bottom Line

The above are just some of the basic and most common Amazon FBA mistakes that sellers make.

Some may seem like rookie errors, we know, but if you don't want your business to crumble then you will pay close attention to the advice above and take it seriously. 

Finally, you must know and take everything into account when you start selling on Amazon.

Granted, that is not a simple task, but with the right mindset and knowledge, it gets a lot easier. 

If you're still on the fence about starting your business, have a read about How to Start a Small Business at Home.

Before you know it, you will be a pro at dodging those Amazon FBA fails and an expert at identifying the mistakes of selling on Amazon.

Hopefully, you won't make any Amazon FBA mistakes from here on out. 

Good luck from everyone at PalletOnline!

If you need any further support or advice, then please feel free to get in touch with us! 

Questions & Answers

Under no circumstance can sellers deliver their own items to any Amazon Fulfilment Centre. Trucking firms and licensed delivery companies are allowed to deliver goods to Amazon, but even they have to have appointments booked in advance.

Amazon barcodes must be printed in black ink on white, non-reflective labels with adhesive that can be removed. Dimensions must also measure between 1'' by 2'' and 2'' by 3''. Labels must be securely attached to your goods prior to delivery.

Fulfilment by Amazon is as simple as this: you sell it and Amazon delivers it. You send goods to Amazon to be stored in one of their Fulfilment Centres. Once Amazon receives your freight, you can track it through their system. The customer will order your items from Amazon and they will then be shipped out to your customer as soon as the order is processed.

You do not need to be a registered business to sell on Amazon and in fact, Amazon doesn't require you to register your business. However, your local governments may want you to register as an online business if you are frequently selling goods through FBA.