Why Do People Fail at Amazon FBA?

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Every day we can see sellers who join Amazon trying to make thousands from selling different products. While we hear inspiring stories about successful sellers, working on Amazon is not easy for everyone. Some sellers have failed and don’t wish to follow more selling.
people failure stories in online arbitraging

Table of Contents

Failure stories of Amazon sellers should not discourage you from creating a business on Amazon. You can learn from Amazon FBA failure stories and don’t make the same mistakes. If you use others’ experience and are passionate, hard-working, and patient, you can be successful.

In this guidance, we will count the reasons why people fail at Amazon FBA and can’t do a profitable business.

Read More: How to start Amazon FBA business?

Choosing Inappropriate Goods

It is the most significant error that brings you a big failure too!

When you decide to be a seller, you are excited to start faster. This excitement can cause you to choose your products in a hurry. Whether you want to do private labeling or online arbitrage, building a successful Amazon business comes after picking the right products.

In a short time, you cannot find the right strategy for choosing and supplying your products. But how can you find profitable products?

Dozens of tools and software can dig deep into the internet and collect data faster than the manual process. This data can help you to choose the best products.

After finding the best goods based on data, it’s important to be sure about the quality. Low-quality products like damaged products or goods that do not last as it guarantees can make the customers angry and lead to bad reviews and feedbacks. It can ruin your reputation and eventually decrease your sale and profit.

So always a chip or profitable product isn’t the best one to choose. Before supplying a product, make sure that it’s a high-quality product.

Read More: 10 Tips for Getting Started Online Arbitrage

Working On Amazon Is Easy

You don’t need to be a genius to be a successful seller, but selling on Amazon requires mental and practical efforts. Don’t have a false expectation with any business, especially Amazon FBA Online. Most people look at this business as a way to make money quickly. Set your goals realistically and choose a timeline for your business. Like any business, you need time, money, and so many efforts to be a successful seller on Amazon. Put real-time and effort to achieve your goals and scale your business. Learning is an important part of success in this business.

Read More: Amazon Ungating Service

Account Suspension

Amazon has strict policies for every seller. If any seller breaks the rules, Amazon suspends the account immediately. Some reasons that cause account suspension are:

  • Invoices that don’t meet Amazon’s requirements
  • Operating more than one account
  • Providing poor customer service
  • Violation of Amazon selling policies

Always try to stay away from these mistakes and follow the policies of Amazon. If you want to protect your account from getting suspended, remember that:

  • Update your product listing according to the latest Amazon policies.
  • Be available for your customers to prevent any bad reviews or feedback.
  • Care about feedbacks. Check shipping time and try to fix the issues according to the reviews.
  • Respond to Amazon’s notification and policy warnings fast.

Read More: What Every Amazon Seller Needs to Know about Amazon IP Complaints?

Doing Everything By Yourself On Amazon FBA

For sellers who handle everything on their own, it’s tough to give 100% to every business aspect.

In the beginning, you might do everything on your own because you are excited and fresh. But if you have a long-term vision for this business, you realize that you cannot do everything yourself. It’s better to outsource some tasks to focus on more critical tasks. For instance, instead of searching for hours for an online arbitrage lead, you can outsource it using OA sourcing lists.

Read More: Four different methods for sourcing products that every online arbitrager should know

Amazon takes customer service seriously, and it decreases ranking products if you can’t pay enough attention to customers’ issues. So, one of the essential tasks that you can outsource is customer feedback management.  Assure that there’s always someone who can handle customer service. Based on your business’s size, you can make a team and hire different assistants instead of outsourcing it.

Lack of Knowledge

Most of the failures are due to a lack of experience and knowledge. Some sellers think that it’s enough to launch the products and it brings them to profit automatically. Learning new stuff should never stop. Without updating your knowledge about new strategies and techniques, your business stops growing, and sometimes it declines.

There are many resources that you can use to learn. YouTube videos, articles, and … are free and online resources that can help the provider be a trustable expert.

Learning can give you the courage to take calculated risks. For example, if you learn a new category, it can potentially bring great profit to your business. Without taking this risk, you never fail in the new category, but you can never expect new profit.

Read More: 7 Brutal Mistakes of Arbitragers

Not Investing Money in Your Business

Every 1 dollar is important to be reinvested in inventory, but you can’t make money without spending money. Some sellers always look for free apps and services. Free apps and services can suffice you at certain business levels, but you can’t always have this mindset. If you scrimp, you deprive yourself of so many helpful and time-saving tools and services.

In the beginning, count every penny you are spending on your business, but when you are scaling your business, you have to expand your budget too.

Final Words

Don’t buy the lies that say getting successful on Amazon FBA Online is easy. It needs knowledge, dedication, time, and money. And it’s important to be patient. Being a third-party seller on Amazon isn’t like finding a treasure map and getting rich quickly. It’s like any other business.

It doesn’t mean that to get disappointed. It just means that to be realistic. Set your goals according to the time and money you can invest. Then never stop learning to be a successful seller.

2 replies on “Why Do People Fail at Amazon FBA?”

Interesting article.Thank you.
As i understand,Amazon doesn’t allow seller to request feedbacks to the customers anymore.is this true? If it is not true, how can we do this feedback request properly?
Thank you for your help

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