#staymotivated
Selling on Amazon and becoming a successful seller is so rewarding. This blog is not to bash Amazon but to inform that there are other profitable options out there.
You are finally able to create a small business for yourself. There are classes, Facebook groups, YouTube videos to demonstrate how to be successful on Amazon. Amazon has helped many make a great living as third party sellers. Riding the wave of Amazon is like a natural high!
Now, do you have a back up plan in case things get turned around and the waves crash into the rocks? Amazon will take care of Amazon but they are not concerned with your success or downfall.
There are pros and cons to any business such as it is easier to get set up on the in Seller Central and Amazon already has a huge customer base. One problem is as a new seller it can be hard to be seen. Other new sellers sell at lower prices to pull buyers away from seasoned sellers.
CONS
- Lets say you are creating a great brand and you start to private label. Counterfeiters can list items under your ASIN. This in turn causes bad reviews of your items and they are not even your items!
- Even if you have your own brand does not mean you can set your own prices. If Amazon thinks your prices are high they can take away your buy box. That is Insane!!!
- There is always a risk that your items may become unsaleable or restricted. at any time
- Amazon has a monthly fee of $39.99 and their additional fees are about one-third the sale cost of the item.
- Mishandled inventory is a common problem with FBA sellers.
- Pointing Amazon shoppers to your website is a violation of Amazon's policy.
- Running low on inventory can affect your sale's rating.
It is very important to understand especially if you are just starting out on Amazon, do not make Amazon your only eCommerce source. Max Godin's blog on CrazyLister describes horror stories from Amazon sellers about thousands they have lost thanks to Amazon over issues that were not the seller's mistake!
Niche Encroachment – One tactic Amazon uses, is something I like to call ‘Niche encroachment’ which basically means that if you don’t own the rights of a brand or have a product patented then there is a good chance Amazon will steal your niche from under you. People who used to sell cables or SD cards on Amazon will know exactly what I am talking about. Amazon has a program called ‘Amazon Basics’ (which grew to over 60 Amazon manufactured brands in just 6 years) in which they use merchants as guinea pigs to see if a product is profitable. Once they see that it is, they start selling their own private-label version of that product at under market prices and with preferential rankings in their A9 search engine algorithm, essentially obliterating the competition.
Read more- Amazon Seller Horror Stories – What to look out for when selling on Amazon August 19, 2018 Max Godin https://crazylister.com/blog/amazon-seller-horror-stories
Starting your own business takes a commitment and to see results takes anywhere from 3 to 5 years. Do not be fooled by these fly by night offers to show you how to become rich selling on Amazon and how easy it is! Yes, you can be successful selling on Amazon but this is commitment and hard work.
To be successful:
- Understand Amazon's policies
- Choose the right seller account to begin
- Find a niche that works for you
- Have a good understanding of all cost and margins selling your items.
- Learn the return policies
- Master product listing and descriptions
Here is a list of six other platforms to consider selling on:
1. Your own website- This is a long term asset. You can build your own brand but you will have to drive traffic to your website.
2. Etsy- Is a great platform for arts, crafts, and vintage items. Geared toward hand made items.
3. Rakuten- This is a plat form in Japan known as "Amazon of Japan". Japan's population is more that 126 million with 90% registered on Rakuten. Keep in mind their platform is not like Amazon's it is better. You have better control and you are not competing with them.
4. Newegg- Is a platform for electronics with over 30 million customers.
5. Bonanza- This platform has merchants from many countries and is considered an easy selling platform and is a fast growing marketplace. Bonanza offers import features for listings on Etsy, Amazon, and eBay.
6. Shopify- A great platform that you can design your own store front for your own products but this takes a lot of work compared to Etsy or Amazon. The positive is this is a better branding building platform for your own products.
Amazon can be complicated and expensive. Just make sure you don't put all your eggs in one basket. Do your research. Shopify for instance offers a free 14 day trial. Take advantage of other platforms to scale your business. It is always a blast to ride the wave until you fall.
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