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Amazon is a well-known platform for both customers and sellers. Amazon is known to be the best platform for sellers to reach global customers. As a seller on Amazon, this could mean that you will face a series of challenges to establish your business on the platform successfully. Here are some of the challenges sellers encounter when starting to sell on Amazon marketplace.
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HOW TO HANDLE THE TOP AMAZON SELLER CHALLENGES The Appeal Guru
SELLER ON AMAZON • Amazon is a well-known platform for both customers and sellers. • As a seller on Amazon, this could mean that you will face a series of challenges to establish your business on the platform successfully. • Here are some of the common challenges sellers encounter when starting to sell on Amazon: www.theappealguru.com
SELLING FOR THE FIRST TIME • Amazon has to become more strict in accepting who can sell, what they can sell, and how they sell. • Potential sellers must receive Amazon’s approval to sell products in most categories, and the list of categories requiring approval keeps on growing. www.theappealguru.com
SELLERS PAID EVERY TWO WEEKS • Amazon pays their third-party sellers every two weeks. The biggest challenge here is you’ll need to issue the money for inventory before you start to catch any income from the very same stock. • This can easily be one of the biggest challenges that new Amazon sellers will come to terms with. • Sellers may be making a nice profit from their sales, but they need to maintain cash on hand to avoid messing up any inventory order. www.theappealguru.com
COMPETITION • Competition makes it hard for newcomers to launch their products. • Customers are inclined to choose products with established names, customer reviews and ratings over newly introduced products with low reviews. www.theappealguru.com
PRICING • Most sellers who are having a lot of competition respond by lowering down their prices. Competing based on pricing is a horrible idea because there is always a seller willing to sell for less. • This can lead to cost-cutting in the manufacturing process, negative reviews, lower-quality products, leading to lower sales. • Competition on price can lead to thin profit margins that make it difficult for new sellers to continue selling on Amazon. www.theappealguru.com
REVIEWS AND SELLER FEEDBACK • Product reviews and feedback are key elements in the decision making of Amazon customers. • Product reviews are the opinions or feedback of customers. • Seller feedback indicate the quality of customer service a seller provides. www.theappealguru.com
CATEGORIES RESTRICTIONS • Amazon has been strict with their sellers, they allow selling products in specified categories. • Small sellers may have difficulty in getting sale in some categories. • In most cases, sellers need to purchase inventory in order to have the documentation required by Amazon to be approved to sell in a specific category. www.theappealguru.com