Amazon FBA is a service that allows sellers to store their products in Amazon’s fulfillment centers and let Amazon handle the packing, shipping, and customer service. For this – Amazon FBA has become an increasingly popular way to sell their products.
This can save sellers a lot of time and hassle, but it also comes with some challenges and risks. However, most Amazon sellers are not aware of how to utilize the Amazon FBA service properly. Due to a lack of knowledge or awareness, they made some deadly mistakes that hurt their profit margin and ruined their business.
In this guide, we will discuss in detail a few deadly mistakes that Amazon FBA sellers must avoid and will provide some tips to avoid them. By following these tips, you can improve your FBA performance, increase your sales, and grow your business.
We will cover:
- Inaccurate Box Dimensions and Weight
- Lost items from the Amazon Warehouse
- Negative Reviews
- Inventory Management
- Wrong Pricing Strategy
- Inaccurate Product Details
- Using non-GS1 UPC Barcodes
- Listing Products as Generic
- Product quality
#1. Inaccurate Box Dimensions and Weight
When you create a shipment to send your products to Amazon’s fulfillment centers, you need to provide the correct box dimensions and weight. This is important because Amazon charges you based on these factors, as well as the FBA fees, storage fees, and shipping fees.
If you provide inaccurate box dimensions or weight, you could end up paying more than you should.
For example, if you overestimate the size or weight of your box, you will pay more for the FBA shipment and storage fees. Not only that, if you underestimate the size or weight of your box, you could face penalties or delays from Amazon.
To avoid this mistake, you should measure your box dimensions and weight accurately using a tape measure and a scale. You should also use the right size and type of box for your products, following Amazon’s packaging and prep requirements.
#2. Lost items from the Amazon Warehouse
When you send the item to the Amazon warehouse – sometimes Amazon makes a mistake while they receive items. They may miscount the number of items you sent, or mix them up with other sellers’ items. This could result in some of your items being lost or misplaced in the Amazon warehouse.
If you are not aware of this, you could lose money and sales opportunities without making a mistake on your end. You could also face inventory issues, such as running out of stock or having excess stock.
If you notice this thing is happening with your shipment – you can apply for reimbursement because you owe it from Amazon
To avoid this mistake, you need to monitor your shipment status and inventory levels regularly.
To check the shipment status, Click on the 3-dash Menu, go to the Inventory, and then click on the Dashboard under the Fulfillment by Amazon (FBA).
From the Dashboard page, hover over Shipment and click Manage Shipment.
Now, you can see the shipment status for all of the shipments that you have sent to Amazon so far.
For more details, we need to click on the Shipment name.
Here we can see, the Shipment closed with discrepancies on November 10, 2023.
Now we need to go to the Contents option to check which items are missing.
Now, we can see Amazon is showing a message – “Amazon has received your shipment and a discrepancy has been found in one or more of your items. Review the details and status of each discrepancy below.”
Here you can see how many items you send and which items are missing.
So, you must monitor the FBA shipment to avoid such type of issues. And if you find anything you should contact Amazon and request a reconciliation. You may also be eligible for a reimbursement from Amazon if they lose or damage your items.
#3. Ignoring Negative Reviews
Customer reviews are crucial for your FBA business. They affect your product ranking, conversion rate, and brand reputation. Positive reviews can help you attract more customers and increase your sales. Negative reviews, on the other hand, can hurt your business and drive away potential buyers.
It’s really important to take care of the Negative reviews and ratings. But most of the FBA sellers don’t know that – if a customer provides negative feedback it could be removed.
As a seller, you can only request feedback removal through the Amazon feedback manager within 90 days of submission. If you don’t appeal within this time frame, you are no longer to take it down. Once you appeal for an FBA item, amazon will remove it instantly according to its guidelines.
To do this, you need to go to the Feedback Manager from the Customer Menu
And click on the Request Removal option against that negative review.
If the reviews meet all the criteria according to Amazon’s Guidelines, they will remove the Negative Review.
#4. Inventory Management
Inventory management is one of the most challenging aspects of FBA. You need to balance the demand and supply of your products.
You can send any quantity like 100, 200, or 500. Amazon will allow you to send any quantity because as much as the quantity you send – it would be beneficial for them. So, before sending, we need to calculate the quantity based on the market demand, past sales records, etc.
Overstocking means having too much inventory, which can increase your storage costs and risk of unsold or obsolete products. Understocking means having too little inventory, which can lead to out-of-stock issues, lost sales, and lower rankings.
Also, if you run the PPC advertisement for FBA items and the item goes out of stock, all the traffic and impressions will be gone that you gained from the PPC advertisement. And you need to start from the beginning.
To avoid this mistake, you should also monitor your inventory performance regularly and adjust your inventory accordingly. You should replenish your stock before it runs out, and avoid stocking too much inventory that you can’t sell.
You should also consider using Amazon’s inventory placement service or distributed inventory placement service to reduce your shipping costs and time.
#5. Wrong Pricing Strategy
Pricing is another critical factor for your FBA success. You need to set a price that is competitive, profitable, and attractive to your customers. If you set the wrong price, you could lose sales, customers, and money.
If you set your price too high, you could lose customers to your competitors who offer lower prices. You could also trigger Amazon’s potential high pricing error, which could make your listing inactive.
On the other hand, If you set your price too low, you could lose money and profit margin. Also, you could also trigger Amazon’s potential low pricing error, which could make your listing inactive as well.
Actually, Amazon continuously monitors the product price to keep the marketplace stable. As Amazon is the most customer-centric marketplace, they always try to maintain that – customers are getting the value of their money.
To avoid this mistake, you should also monitor your pricing performance regularly and adjust your price accordingly.
You should consider using Amazon’s repricing tools or third-party repricing tools to automate your pricing strategy and stay ahead of the competition.
#6. Inaccurate Product Details
Your product details are the main source of information for your customers. They include your product title, description, images, features, specifications, and variations. Having consistent or accurate product details matters because it helps to reduce the return rate.
So, your product details should be clear, accurate, and informative, to help your customers make informed buying decisions.
If you provide inaccurate product details, you could mislead your customers and create a negative shopping experience. You could also increase your return rate, which can affect your FBA fees, ratings, and rankings. As Amazon handles the return, it will charge you for the return processing fee.
So, Please be careful and try to provide accurate product information for a better customer experience and reduce the return rate and cost.
To avoid this mistake, you should provide accurate product details that match your products exactly. You should also follow Amazon’s product detail page guidelines and best practices.
Here are some tips to improve your product details:
- Use descriptive and relevant keywords in your product title, description, and features
- Use high-quality images that show your product from different angles and perspectives
- Use bullet points, lists, and tables to highlight your product features and benefits
- Use variations to offer different options for your product, such as size, color, or style
- Use A+ content or enhanced brand content to add more visuals and information to your product description
#7: Not Using GS1 UPC Barcodes
A UPC barcode is a unique identifier for your product that helps Amazon track and manage your inventory. You need to have a UPC barcode for each product you sell on Amazon unless you are selling books, media, or products that are already in Amazon’s catalog.
However, not all UPC barcodes are the same. You need to use GS1-certified UPC barcodes, which are the official and authentic barcodes issued by the Global Standards Organization (GS1).
GS1 is the only organization that Amazon recognizes and trusts for UPC barcodes.
Most new FBA Sellers are not aware of the GS1-certified UPC barcode, and a lot of sellers are having issues but not doing this. Due to the unregistered UPC, they are getting their listings suppressed, taken down, not approved, etc.
You could also get your account suspended or banned by Amazon. A lot of sellers are buying UPC from 3rd-party at a lower price, which is a big mistake.
To avoid this mistake, you should always use GS1-certified UPC barcodes for your products. You can get them from the GS1 website or authorized GS1 partners.
#8: Listing Products as Generic
When you create a listing for your product on Amazon, you need to provide a brand name for your product.
A brand name is a name that identifies your product and distinguishes it from other products. A brand name helps you build your brand identity, reputation, and loyalty on Amazon.
However, some sellers make the mistake of listing their products as generic, instead of using a unique and original brand name.
They think that this will make their products more appealing to customers who are looking for generic products. However, this is a bad idea for several reasons.
If you list your products with the Brand name Generic, you may face the following issues with your listings —
- Listing your products as generic makes your products vulnerable to hijackers, who are sellers who sell counterfeit or inferior products under your listing.
- Hijackers can steal your sales, customers, and reviews, and damage your brand reputation.
- Listing your products as generic prevents you from building a brand that becomes a sellable asset.
- If your listing succeeds, you’re going to have sellers selling on top of your listing. Ultimately they are generating sales with your listings.
To avoid this mistake, you should always list your products with a unique and original brand name. You should also register your brand name with Amazon’s brand registry, which gives you more control and protection over your brand and listings.
#9. Selling Poor Quality Products
Your product quality is one of the primary factors that determine the success of your FBA business. Poor-quality products can lead to negative reviews and returns, which can severely impact your overall sales.
Ensure that the products you source are of high quality, and conduct thorough quality checks before sending them to Amazon’s warehouses. Quality products make customers happy and increase your sales and customers.
To avoid delivering poor-quality products, here are some tips:
✔Source products from reputable suppliers
✔Conduct thorough quality checks
✔Respond promptly to any customer complaints or feedback
✔Provide clear and accurate product descriptions and images
Final Thoughts,
Amazon FBA sellers should steer clear of these nine deadly mistakes to ensure a successful and profitable venture. Navigating the dynamic landscape of Amazon FBA requires astute attention to detail and a commitment to avoiding common pitfalls. From ensuring accurate box dimensions and weight to meticulous inventory management, sellers must prioritize precision in every aspect of their operations. A holistic approach to these factors not only safeguards against potential setbacks but also ensures maximum profit margin.
If you need any help with Amazon FBA, feel free to let us know in the comment box or email us at the following email address: info@ecomclips.com
To know more about Amazon, please check out our other blog. Also, you can check our YouTube videos as well related to Amazon.
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