Nowadays, it's easy to become an online seller. With the pandemic and lockdown that forced us to stay at home and a lot of free time on our hands, many of us have started doing side hustles, especially selling online on Amazon.
As we all know, Amazon is a vast marketplace for sellers and continues to attract new sellers for its popularity and influence in the eCommerce industry. But there are a few things that new sellers need to be mindful of when looking to sell on Amazon.
Like any other online selling platform, Amazon has its own set of challenges that a new seller would have to go through to reach their desired target. If you are a new seller or planning to sell on Amazon, here are a few common challenges that you need to be aware of.
1. High Competition
According to a report by Marketpulse, more than 2,000 new sellers have joined Amazon’s twenty global marketplaces every day since 2016 and that makes it over 10 million seller accounts today.
Due to this, there is high competition and it makes it more difficult for the new sellers even to rank their listings on Amazon. On the other hand, the competitors or the seasoned sellers are on the fortunate side as they are well-prepared and optimized thoroughly for Amazon's search algorithm.
If you are struggling with optimizing your products to rank better with the new algorithm, here are some tips that we would love to share with you.
2. Delayed Revenue
One of the major challenges while selling on Amazon is staying on top of your cash flow.
Amazon has a strict policy of payouts where they pay the third-party sellers biweekly. But most sellers, especially the new ones, rely on this revenue to maintain and manage their inventory. The delay in payouts can pose a challenge for these sellers who depend on it to replenish their products.
We suggest that you invest in some funds to help maintain your inventory costs as well as open your own sales channel such as an e-commerce store or set up your own marketing channel to bring in more sales and traffic.
3. Restrictions and Limitations
Selling on Amazon comes with a lot of strict restrictions and policies on product restrictions, packaging restrictions, inventory restrictions, etc.
To know whether your products fall in the restricted category, you can check with our ASIN Checker in just a few seconds.
Using the Amz Online Arbitrage Fba Multi-Tool, you can also check the profitability, competition, and other limitations of your products.
4. Back To Normalcy
With things returning back to normalcy, there has been a significant decrease in e-commerce sales and an increase in shopping in person. However, this won't affect selling online greatly since there are always people who prefer to shop online.
To make online selling easy and increase sales, especially with the given situation, we suggest that you monitor and optimize the product listings well. Make sure to keep track of your inventory levels and ensure that the products' performance on Amazon is as strong as it can be.
Keeping in mind these common challenges, selling on Amazon can become a breeze for any new seller. For more such tips and ways to tackle Amazon selling, follow our Amz blog.