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Challenges That Amazon Sellers Must Overcome

Selling on Amazon is a great way of building an eCommerce empire, but it isn’t always easy. Here are some challenges that Amazon sellers need to overcome if they want to be successful on the platform. 

Delayed Profits 

Because you need to sell items at a very reasonable price on Amazon if you want to make any sales, profits tend to take quite a long time to accumulate. This is perfectly normal.

You need to make sure that your operation is sufficiently scalable so that you can increase the number of products you sell each month. Selling at small profit margins can work for you if you sell a great many products. 

Price Wars

With so many vendors using the platform, competition is extremely fierce on Amazon. This can lead to ‘price wars’. Nobody wins in a price war. A race to the bottom can cut into your profits and takes a great deal of time to reverse.

Knowing your target market and keeping your prices reasonable from the start is the best way of going about things. Don’t be tempted to continuously lower your prices. 

Marketing Woes

Amazon selling comes with some unique marketing considerations. It might be a good idea to enlist the help of a specialist marketing consultancy like Nuanced Media for help in this realm. Visibility is key when selling on Amazon.

Make sure that your selling page is fully Search Engine Optimized. You might also want to create content around the web that links to your selling page. Influencer marketing is also a wonderful way of tempting your specific target audiences into your shop.

Marketing efforts must be multi-pronged and spread across multiple platforms – all linking to your Amazon seller page. 

Feedback

One of the reasons that Amazon is such a successful platform is that it allows feedback in several forms. Reviews and messages are by far the most common kinds of feedback that a seller will receive.

Reviews are especially important. Customers will often decide whether to purchase from your shop according to the peer reviews that your products have received. Reviews need to be genuine – don’t be tempted to pay a shady agency to post fake reviews on your behalf.

Amazon has strict policies regarding the genuine nature of reviews, and cheaters can be exposed with relative ease. The better your reviews are, the more favored your shop will be by the Amazon algorithms.

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Competition 

Amazon is an absolutely vast marketplace. Around 56 percent of all products on Amazon are sold by third parties. That is a lot of competition.

While competition in a marketplace is a healthy thing in general, too much competition within specific niches can lead to nasty price wars and minimal profits. The key to avoiding competition is to find a niche of your own.

This necessitates a great deal of research. Find a target audience and market to them exclusively. Centre your product choices around your target audiences – don’t expect your audience to focus their purchases around your products. 

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