Why most people fail to build a profitable Amazon FBA business

Amazon FBA | 0 comments

Not everyone who starts an Amazon selling business gets successful.

Most of them fail but still, there are few who scale their business to get millions of dollars worth of sales.

Building a successful Amazon FBA business is neither too easy nor complicated unless you take it seriously and put the right effort.

You need the right guidance, enough capital, dedication, and patience.

In this article, you will find 7 common reasons why most people fail to build a profitable Amazon business.

What is the success rate of Amazon FBA business?

If you enter any online business with a mindset to get rich quickly, and a shortcut to success you are most likely to face failure.

Amazon FBA business is just like any other traditional brick and mortar business.

We trust traditional business models more because it has been practised since so long compared to online businesses.

Like any other business, Amazon FBA business also requires real time and effort.

The rate with which Amazon store’s profitability and success are going to increase is exponential with time.

There are no shortcuts, no magic but the combination of the right strategy, experience, continuous learning, marketing and selection of right products

Reasons for failure of Amazon business

Picking Wrong Product

This is the biggest reason why most people fail at becoming a successful third-party seller on Amazon.

I know you are excited to get started as soon as you can. And, in this excitement, you launch your product in a hurry.

Building a successful Amazon selling business all comes down to finding the right product.

You should spend a considerable amount of time and put the right strategy to find your product.

Solution:

How can you find and make sure it’s the right product for you?

Here you will find one software that has every tool in one platform which you are going to need in your Amazon business journey.

ZonBase has a ZonResearch tool that digs deep into Amazon’s database to collect data of over 20 million products and help you to find the right product for you.

Reasons why most Amazon FBA businesses fail

It also has ZonBase Chrome Extension which will help you to speed up the product research process.

Using the tools/software instead of the manual process will not only reduces time but also makes sure that you have access to the data to make the right decision.

Poor Business Plan

Business models available for Amazon FBA are private labelling, selling well-known brands retail arbitrage, online arbitrage, wholesaling, specializing in a niche and more.

But what most sellers fail to find out what is the profit margin, and costs that go into selling the products.

Solution:

There isn’t any right model for your Amazon FBA business, different models have different requirements, different profit margins.

You have to do your research and find out which one is best for you and make you money.

Whatever business model you decide to go for, consistency is the key to make it successful.

You should consistently look for the right products to sell and make sure you have a reliable supply of the products to avoid costly stock-outs.

False Expectation

Do not have unrealistic expectations with any online business.

Most people start finding online opportunities with an expectation to get rich quickly. Some find every online opportunity a scam.

Making money online is neither a scam nor a scheme to get rich quickly.

Same with Amazon FBA, you can’t enter the business with false and unrealistic expectations.

Just like any brick and mortar business, you are going to need time, money, patience, and a lot of effort to be successful as an Amazon’s third party seller.

Solution:

Always get your feet on the ground and set realistic goals with a timeline.

Treat Amazon FBA or any other online business as a real one.

Put in real work and time to build and scale your business.

Bad Reviews and Feedbacks

Sometimes even a small issue can lead to bad reviews or feedback from the customers.

Issues like damaged products, products not lasting as it guarantees and many more might disappoint customers and will lead to an influx in bad reviews.

Customers tend to check the reviews before buying any product, so it will eventually reduce your sales and profits.

Solution:

Always try to provide the best quality products.

Do not always go for sourcing cheap products, sometimes cheap products have cheap quality too.

Why 99% of People Fail on Amazon FBA business

Order a sample for yourself from different suppliers to check the quality, review the product as a customer.

Check your reviews regularly to find out what problems your customers are facing and try to solve them by improving your service and product.

Account Suspension

Amazon has some rules and policies for every third party seller.

If any third-party sellers are breaking those rules or not maintaining the standard set by Amazon, Amazon will immediately report the account and suspend it.

Irrespective of experience or the size, the company couldn’t compromise when it comes to bad performance.

Amazon is popular for providing world-class customer service to its customers.

Here are some of the reasons why Amazon suspends an account:

  • Selling inauthentic or restricted products
  • Providing poor customer service
  • Violations of Amazon selling policies
  • Operating seller accounts more than one
  • Account getting hacked
  • Getting inauthentic complaints by customers

Solution:

First and foremost prevention is always better than cure.

You should always abide by the rules and policies of Amazon.

Here, are some of the tips that you should follow to avoid getting suspended by Amazon:

  • Make sure that your product listing is always updated according to Amazon policies.
  • Download the amazon seller app that will help you to reply fast to your customers to prevent any bad reviews.
  • Keep checking and reviewing customer feedback, shipping time and try to improve your service according to customer feedback.
  • Always respond as fast as you can to any of Amazon’s policy warnings and notifications.
  • Sellers use Amazon FBA fulfillment option to avoid any eCommerce fraud, provide better customer service, shipping service and returns.

If by any chance your accounts get suspended then you have to draft a Plan of Action to reinstate your account.

Send your appeal to Amazon as a reply that you would have got from them regarding your suspension.

To know more about how to reinstate your suspended account click here.

Bad Customer Service

For any business, the customer is the king.

If you do not address your customer issues, provide late product shipping, it is going to affect your sales to a great extent.

Amazon takes customer service very seriously for ranking products on Amazon search results.

For merchants handling everything on their own, it might be quite difficult to give 100% to each aspect of the business along with providing great customer service.

Solution:

Most third-party sellers opt for Amazon FBA, using which anyone can leverage the platform to provide world-class customer service to all their customers.

Even if you are not using Amazon FBA, hire a team based on the size of your business who would handle the customer service.

Lack of Learning

Most sellers fail because of the lack of learning, experience and the right strategy.

Learning should never stop, it is a key to keep growing and having a successful business.

Most sellers have the mentality to just launch the product, get the work done and that’s it.

As a result, the growth of the business starts stagnating and sometimes starts declining.

Solution:

Nowadays there are many resources that you can find online to follow and learn from.

But make sure you have done your research to get hands-on trusted and real stuff.

You can watch youtube videos, which are absolutely free and provide good information.

Learning from an experienced Amazon seller will help you to discover new strategies and tips that would skyrocket your business.

Join Free Trainings or Amazon courses to learn from the best.

Final Thoughts

Do not buy the lie from anyone who says that Amazon is easy and can be done without any efforts.

There are hundreds of aspects that go into making an Amazon FBA business successful.

But yes, following some rules, strategies and learning from the experts will definitely make your path easy and bring you results in less time and effort than you would be getting by doing on your own.

Learn from others how they failed and how they become successful.

In this way, you can avoid some mistakes and adapt the strategies of successful Amazon sellers.

Make sure you have realistic expectations, plan well, and develop a proven system to scale your business.

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