New on Amazon? There’s a probability that your lack of knowledge and experience about the Marketplace may lead you to make some common blunders novice vendors habitually fall prey to.

In this blog post, we cover some common mistakes Amazon sellers make when they first start selling and how they can avoid them.

Don’t Price Only for Competition

While it is smart to price your product cheaper than how your competitors price it, don’t out-price yourself.

  • Attractive Pricing: Your prices must be enough to attract customers towards your products and consider it a healthy alternative to competitors. However, don’t let your profit margins fall too low.
  • Improve Upon Other Things: Pricing is not the only element that attracts customers. Concentrate and improve upon things that ensure customer loyalty; shopping experience, customer services and high-quality products.

Don’t be Lethargic with Amazon Research

Rookie sellers ignore amazon research data when it’s probably the most important thing for them.

  • Research Data: It’s very important for newbie sellers to carry out initial keyword research to pin down on common phrases that will increase their rankings.
  • Using AMZInsight: Through a FREE AMZInsight signup, you get access to keyword and product research, bestseller ranking, niche analysis, keyword idea generation, estimated sales and revenue data, Review Tracking, Super Links and a lot more.

Don’t Forget About Your Sales Tax

Many new sellers on Amazon forget to adjust prices for sales tax, resulting in huge payables.

  • Amazon Doesn’t Collect Taxes: Unless you specifically ask Amazon to do so (and pay a fee in exchange), the marketplace will not handle your sales. Once you register as an online business, you’re liable to pay taxes on all your sales.
  • Tax Settings within Amazon: The only way to avoid discovering a huge payable amount to tax authorities at yearend is to take care of taxes as the very first step. Go to ‘Tax Setting’ in Seller Central and fix your settings before you make any sales.

Don’t be Slow with Customer Service

Customers on Amazon are not used to unresponsive, slow services from sellers.

  • 24-hour Response: Amazon expects you to answer customer queries within 24-hours. Any delays will result in Amazon ‘dinging’ you. If you do not answer after several dings, Amazon reserves the right to suspend your account.
  • Use Response Software: Fortunately, there are tons of Amazon response software, like Reply Manager, that you can use to respond immediately to customers. Using these, you can customize your responses or send back a generic response to queries.

Don’t Try to Compete with Amazon

It isn’t smart to try and outsell Amazon in a category where they’re the top seller.

  • Amazon Will Always Be on Top: Obviously, Amazon wants its products to sell the best. Therefore, they manipulate result pages, ads and many other elements on the website to make sure their product is the #1 bestseller.
  • Try Different Categories: You can vend in categories where Amazon doesn’t sell its own items. If you want to sell in the same category, you’re going to have to aim to be the second best, concentrating on sellers other than Amazon.

Don’t fret, however. With a reliable amazon market research solution by your side and a good collection of bestselling amazon products, you should be alright.

Matt Mikaelson
Marketing Executive at AMZ Insight

Matt Mikaelson is a Marketing Executive at AMZ Insight who trusts in the power of research. He specializes in data services, tech trends, marketing analysis and industry insight. It is his belief that data always tells a story, so he enjoys collecting marketing numbers, studying their impact on businesses and how they can be manipulated to market leadership visions. Matt is an expert in, and an enthusiastic student of, digital marketing, consumer behavior, content marketing, ecommerce, online marketplaces and market research.