Selling on Amazon: 5 Things New Sellers Need to Know

Oct 7, 2021

Did you know that SMBs in the US sell over 4,000 items per minute on average on Amazon? No wonder selling on the online retail giant is an attractive prospect for businesses to showcase their products, make more sales, and grow their brand. 

But selling on Amazon can also be overwhelming when you’re first starting out. With its compliance regulations, hidden costs, and many acronyms to contend with, it’s no surprise new Amazon Sellers have lots of questions. 

Here are five of the top things you should keep in mind when you’re new to selling on Amazon. 

1. Your account can get suspended for the smallest of reasons

 

Amazon’s compliance regulations can be a frustration for many sellers. They’re in place for a good reason, but they can be tricky to navigate. So, it’s essential to familiarize yourself with Seller Central regulations as soon as you start selling on Amazon to avoid account suspension–which can happen without warning!

If your account gets suspended, you must act fast. Having your account closed even for a short time can impact your sales. Here are three best practices to prevent your account from being suspended:

Maintain your Amazon performance metrics:

  • 99% Positive feedback
  • 99% On-time delivery
  • 1% defect rate
  • Less than 1% cancellation rate
  • Faster buyer response.

Get written consent from Amazon before changing sensitive or identity information. This includes things like your bank account number, display name, and business type.

Do not use the same user ID in multiple locations on different devices. Instead, create separate access and grant necessary permissions to each user ID.

2. Registering your brand on Amazon is SO worth it

 

Even when you first start selling on Amazon, protecting your brand needs to be one of your top priorities. That’s where Amazon Brand Registry comes in. It’s a free program open to Sellers on any Amazon marketplace. Although Amazon Brand Registry is free, you need to have a registered trademark to qualify for the program.

Enrolling in the registry gives you access to tools for greater control and protection of your intellectual property and content. Not to mention it helps you deliver a better customer experience, too!

Many benefits make registering your brand on Amazon worthwhile, such as:

  • Protect your brand: You’ll have complete control of how your content appears on Amazon, so customers only get accurate information about your brand and products.
  • Boost sales: Get exclusive access to enhanced content features like A+ Content and Brand Stores to promote your brand and products in their best possible light.
  • Amazon support: Benefit from a dedicated Amazon team that will help monitor suspicious activity and protect your brand. You can also report any risks to your products and brand.

3. The pros and cons of FBA vs. FBM

 

When you start selling on Amazon, ask yourself whether Fulfillment By Amazon (FBA) or Fulfillment By Merchant (FBM) is best for your business. 

Let’s take a closer look at each option.

What is FBA?

 

With FBA, you store your products in Amazon’s fulfillment centers until they sell. Amazon will then pick, pack, and ship items as customers order your products. Sounds ideal, right?

Many business advantages come with FBA, including:

  • Amazon Prime eligibility, making your products more appealing to potential buyers.
  • FBA is one of the easiest ways to increase the likelihood of winning the Buy Box.
  • Amazon takes care of customer service and shipping, so you can focus on growing your business.

It’s also important to consider the cons of FBA when you begin selling on Amazon, such as:

  • Additional fees like fulfillment fees and storage fees can cut into your bottom line if they’re not managed properly.
  • Inventory can be harder to track, and Amazon must resolve any inventory issues, so you are more reliant on the company.
  • Limited opportunities to showcase your brand as your products will be shipped in Amazon-branded boxes.

What is FBM?

 

On the flip side, FBM means you’re in charge of product storage, packing, and shipping. So, you’ll also be responsible for any delayed, missing, or damaged arrivals.

However, Amazon FBM means Amazon Sellers have:

  • More control over their inventory
  • Less unexpected costs to deal with
  • More chances to build their brand identity.

FBA or FBM: Which is best for you?

 

The solution you decide is best for you depends on your business’s needs and goals. Remember that FBA is best for high-volume sellers, whereas FBM is better for small volume or one-offs. Also, consider:

  • The size of your business
  • Growth potential
  • Your product categories
  • The areas of your business you’d like to invest the most resources in.

4. Remember to optimize your product listings 

 

A great product is only as good as its Amazon listing. Getting your listings up to scratch from the get-go is advised as it makes things a lot easier in the long run.

Amazon listing optimization helps you get your products ranking higher in the Amazon search results. That means more eyes on your brand and a higher chance of turning those browsers into paying customers.

To successfully optimize product pages, Amazon Sellers must:

  • Find profitable keywords using a keyword research tool like Helium 10
  • Include keywords throughout listing content, including text and images
  • Increase their number of reviews and ratings.

A lot more goes into optimizing your product listings when you start selling on Amazon. Find out more about how you can optimize your Amazon product listing here.

5. Getting product reviews is crucial 

 

Let’s face it; if customers find two similar products on Amazon, they’re going to go for the one with the most glowing reviews.

When you start selling on Amazon, you must proactively get genuine positive feedback. That starts with providing a great product from the beginning. But offering an excellent shopping experience and following up with customers is also essential to boosting your Amazon product reviews.

However, scary, don’t ignore negative reviews either. Responding to negative feedback shows your brand is credible and willing to fix potential issues.

Here are three ways you can increase your number of positive product reviews:

  • Request reviews regularly and streamline the process by using automation tools like eComEngine’s FeedbackFive software.
  • Provide great customer service by responding to any questions or issues.
  • Prompt buyers to leave a review by including product inserts that explain how to leave one.

Amazon has lots of regulations for online reviews. Be sure to brush up on the rules and follow them to avoid your listings being suspended or removed permanently.

 

New to selling on Amazon? Get in touch with the e-Comas team today to discover how we can help you make the most of your brand potential on Amazon.

 

About e-Comas eCommerce Made Simple 

 

Founded in 2013 by Amazon expert Jérôme de Guigné, e-Comas helps you grow and expand your brand on Amazon and all e-commerce platforms – globally, fast! With a hands-on approach, the e-Comas team coaches major multinational brands. It handles the accounts to sustainably grow their business and improve their agility in tackling everyday challenges with online retail. 

 

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