Selling products online can invite a huge new market for many businesses. The enticing part of selling online is that your web store is open 24*7 and you can reach a huge mass of audience without the cost of mailing and call centre experts, in turn can be a big boon to your business. But this is not an end, there are plenty of points to be consider when selling on e-commerce giants. E-commerce giants like Amazon, can surely be a boon to your business as they display your products to millions of interested shoppers. Amazon is estimated to have count of millions visitors on a daily basis and billion of page views per day according to stats. With this ratio of visitors pursuing Amazon product page, it is not difficult to understand how it can be a good channel for many online retailers. Unfortunately, listing dozens, or even thousands of products on Amazon can be a daunting task that leads to expensive mistakes.
Below are some of the most common mistakes made that you should avoid while selling on e-commerce giants, Amazon.
The prices that you have listed your products are too low
Amazon is a leading marketplace where retailers share common product image and description. The only way to compete is through reviews or on price. Selling on a calculated price, is something that a retailer must be prepared to do, but often it is seen that retailers miscalculate the selling fees, underestimate the shipping cost, or likewise list the product with a price that is too low. To make it simpler let me explain with an example: If you sell a product for Rs. 100 plus Rs. 5 in shipping and handling, for a total of Rs. 105. Amazon charges you a fee Rs. 10, leaving Rs. 95. The actual shipping charge was Rs. 8 and the product cost Rs. 80, leaving a profit of Rs. 7 in profit. This is acceptable margin for your product, but is you land up selling the same product for Rs. 88, you have not calculated your shipping fee properly and you lose money.
Product or description is not correct
Please avoid creating new listings for every product. Imagine what would happen if Amazon showed the same product 10 times on a product category page. Customers would be confused and sales will automatically decrease. As a result, marketplaces ask retailers to provide a universal code or a similar unique identifier which is used to associate several sellers with a single listing. If there is an error in the code or a seller accidently associates a product with the wrong code, a huge problem arises. This is certainly a mistake that you’ll want to avoid.
Un-organized inventory management
Inventory can be the main cause of frequent mistakes for retailers selling on e-commerce giants like Amazon.
This problem will undoubtedly arise when retailers do not have a real-time inventory management system. Imagine if a retailer has five products hanging on the shelf in his physical store, but also has those same five products included in his website available inventory and in Amazon marketplace’s available inventory, it is possible that the retailers will sell more products than are actually on hand. This results that a customer somewhere won’t get the product he/she was expecting and may never purchase from that retailer again alongside Amazon marketplace might stop the retailer for listing items in future.
Its better for retailers to allocate inventory to each channel. For example, if you have five products, hang three in your physical store, one in your web store and one in Amazon marketplace. So, when a product is sold, it will be easy to re-allocate rather overcome the scenario on an upset customer.
Missing easy marketing opportunity
Amazon is an ultimate way to market new prospects and potentially build long-term customer relationship. As per a research in customer’s shopping behavior it is noticed that a customer who returns for a second purchase spend twice when compared to first purchase, and a customer who returns for third purchase spend five time more when compared to the first purchase. Knowing this, it is essential to encourage such customers for future purchase.
Many online retailers ignore this upfront marketing opportunity. So, when you sell on Amazon include a coupon code in a box encouraging them for more purchase in the future. But as Amazon restricts in-package marketing, consider using an email as a follow up. This email can thank the customer for the order informing them you have a website too.
Avoiding mistakes is real challenge. Every human is bound to make a mistake now and then. Your goal should be to limit your mistakes.