Some Barriers to Entry
Amazon has witnessed plenty of new sellers who don’t always follow the rules. As a result, it has been forced to become strict, which can make new seller on-boarding difficult. The platform now has stringent rules on who can sell, what can be sold, and how to sell on Amazon.
Sellers require pre-approval to sell various types of inventory including handbags, clothing, automotive items, and more. Though it isn’t easy to be approved, sellers on Amazon can get automatic approval to sell in a few categories immediately after they open their account.Payouts Limited to Every Two Weeks
When selling on Amazon, the payments are made directly to your checking account every 14 days. Businesses that have a legacy account can request payments as often as every 24 hours.
Amazon isn’t PayPal compatible. This can be an issue if you use the revenue from your sales to purchase more inventories to sell from other platforms. Though there are options to work around the two-week payment system, you will still have to be approved by Amazon.The Selling Environment Is Highly Competitive
A majority of sellers on Amazon resell items they've purchased from suppliers in bulk rather than sell their own unique products. The problem is if you can buy it in bulk, so can others. This creates a lot of competition for the same products. To find a way around this problem, sellers are now creating unique products by asking companies to put the seller’s brand name on the existing product along with a few additional customizations. Such products are called private-label or white-label products.
It’s Difficult to Build a Positive Feedback Profile
Amazon consumers are the worst at leaving feedback. According to statistics, only one out of every 30 buyers leaves feedback on Amazon. This means you will have to sell a whole lot of products to bag some positive feedback. Unfortunately, positive or negative feedback doesn't carry as much weight on Amazon as it does on other marketplaces like eBay.Amazon Is Complicated and Expensive
This will ring especially true if you have already tried Amazon FBA selling. Though Amazon has tons of videos and written content that provide in-depth guidance on how the FBA program works, new users still find it difficult to wrap their heads around the program. It is easy to send your products to an Amazon warehouse and have it stored there until a consumer buys them. But a lot can go wrong with damaged goods, lost goods, and other warehouse issues.
Despite all these pitfalls, there are right ways to sell on Amazon that will help you succeed. Here’s a video
by Project Nine University
where Samuel Roth an FBA seller reveals the truth about Amazon selling.
Wherever you are in your Amazon FBA journey right now... from not even started, to deep into selling product, we can help you get to the next level.
Start by watching our FREE 20 Minute Amazon Training: