Should I Close my Amazon FBA Business in 2021?

Amazon Business | 0 comments

Amazon FBA is a great platform to earn money online as an Entrepreneur. It offers a great opportunity for individual sellers and small businesses to sell their products and build a successful Amazon FBA business.

Having said that many times because for many reasons, an Amazon seller might give up on the business. This article is just for you if you are having some difficulties in running your Amazon FBA business and want to consider some options.

Why your Amazon FBA business might have not worked out:

  • Wrong Expectations: You build the business thinking you would make quick money in a very short time. Amazon FBA is not a ticket to be a millionaire overnight. Just like any brick and mortar business, an online business also requires time, effort and not giving up attitude.
  • Lack of Data: Competition in this digital era has become very stiff. So, without a well-planned strategy, it is very difficult to make a strong place for your business. To outrank your competition you need accurate and actual data. More data you have the stronger your strategy and more success you will get.
  • Lack of Investment: Every business needs investment from time to time. Investment in the form of more resources, learning new skills, expanding teams, and more.
  • One-man army: Yes, it is definitely possible for you to start and build an Amazon FBA business all by yourself. But it is not necessary to burn yourself out and do everything. In order to build a sustainable business, you can try hiring people, agencies so that you will have enough time to think about strategies and ideas to scale your business.

Signs you need to down your Amazon FBA business<

Your product not selling

Even if you have put a considerable amount of time into searching for the perfect product for your Amazon FBA business. But sometimes one or two things don’t work out and your products just sit there in inventory.

What you can do:

Find out what are the reasons people are not buying your product. Is it the product’s quality or lack of a good marketing strategy? It is time to sit back and evaluate everything. Shutting down the Amazon FBA business is the last thing before that you need to figure out every way to make it successful.

Getting bad reviews

Successful Amazon FBA business depends on reviews to a great extent. 56% of customers read at least 4 reviews before purchasing anything from Amazon. So, if you are getting too many bad reviews then it’s definitely affecting your product sales.

What you can do:

Read all the customer’s concerns, what they are finding issues with your product or your customer service. Reply to their reviews and try to improve the product. Do not put any feature about the product on the listing that is not true.

You launched products too late

Launching a product late means when you find any trend or opportunity for a product and you launched it much later on Amazon. The probability is the product might not sell. For some products, they get too much hype and multiple people start selling them as soon as they discover the opportunity. With too much competition, the product’s price becomes low, thus lowering profit margin and rising PPC costs.

What you can do:

Don’t put yourself in a price war with other sellers. If you lower the product’s price just to win the competition. You are going to lose your product’s value and harm the competition as well. Optimize your listing for the Amazon A9 algorithm by following best practices. 

Stiff competition

Competition is increasing day by day as more and more people are becoming aware of how huge an opportunity Amazon FBA provides to entrepreneurs. Whether you launch your product early or a little later, competition is going to follow you no matter what.

What you can do:

You need to up your marketing game. Start marketing your products outside of Amazon using Facebook ads or Google Ads. Work on improving the quality of the product, adding more features to make it unique from your competitors.

Other options you can consider:

Downgrade your account:

If you have a professional selling account then you can consider downgrading it to an individual account. By doing this you will save the monthly subscription fee of $39.99 and have to pay a $0.99 fee for every item sold with other fees if you are selling less than  40 products per month. 

Vacation mode:

You can put Vacation mode on your Amazon, you can take some time off from your Amazon business. In that time you can reconsider your strategies, find out what went wrong and how you can fix it. 

While putting your Amazon business on vacation mode, you can join an online course or take one-on-one online coaching from leading Amazon sellers. The online course will help you learn multiple strategies, proven tips, and tricks that can make a huge difference in your business. It will be a great opportunity to leverage the experience and skills of Amazon experts.                           

Close your product listings:

You tried, tested, and implemented every possible way to increase the sales of your product but due to some reason, it’s not going up to your expectations. Then you must consider closing the product listing on Amazon.

What happens when you close your listing?

When you close your product listing on Amazon, then your products will be unavailable to sell on the platform. You can relist or reopen your listings on Amazon whenever you want. Your product’s history will be retained on Amazon.

Selling your Amazon FBA business:

If your final decision is to close your Amazon FBA store, you can consider selling it. You might think that if the store is not working for you who will buy, but you still can. You can reach any online agencies or consultancies who can help you with options on how to sell on Amazon.

Don’t give up

Running any business comes with difficulties and challenges. Amazon FBA is gaining stiff competition every minute as new sellers are joining the platform to sell. Getting failure is inevitable yet important to understand the importance of good effort, strategy, and skills. Do not get discouraged by one failure product or a few weeks of loss. Take a break if you need, join an online course, learn new skills, improve your strategies, and get back to business with new products.

 

0 Comments

Submit a Comment

Your email address will not be published.