Five Common Mistakes When Preparing to Sell on Amazon FBA

Amazon is the world’s largest online retailer. With access to over 150 million Amazon Prime subscribers across the globe, the idea of selling through the Fulfilled by Amazon (FBA) program makes sense.

However, the excitement of creating an Amazon FBA Seller Account may lead you to overlook a few costly details. Here are five of the most common mistakes that new Amazon FBA sellers make and how to avoid them.

1. Failing to Correctly Manage a Product Listing

Most mistakes occur when creating a product listing, such as failing to choose the correct category for the product. Amazon sellers may also use misleading language in the product description or fail to comply with Amazon’s guidelines for titles.

Titles should be 200 characters or less and not contain symbols for decoration. You should also avoid including discounts or promotions in the title, photo, or description. For example, including “25% OFF” in the title of a product violates Amazon’s policies.

Many sellers also make mistakes when uploading photos for product listings. The main photo should clearly showcase the product and nothing else. Use additional photos to highlight features of the product. Only use high-resolution photos and avoid using any photos that may be considered misleading.

2. Not Researching Restrictions in Your Chosen Markets

Amazon has an approval process for certain categories of restricted products. For example, Amazon FBA sellers in Australia cannot sell fine art, music, household products, and various other items without approval.

Along with Amazon’s restrictions, you need to consider regional restrictions. Products that you sell in one country may not be allowed in another. For example, Australia prohibits sellers from importing specific consumer products, such as glazed ceramic ware, dog collars, and some types of toys. Failing to research restricted products may result in wasted inventory, as the Australian Border Force can seize prohibited goods.

3. Failing to Select the Right Products

Selecting the right products is an essential part of selling on Amazon FBA Australia. Some products sell quickly or offer higher profit margins. Items that do not sell stay in a warehouse where you are charged for storage, which decreases your bottom line.

Look at shopping trends and sales data for the markets that you plan on selling in. For example, loungewear, sports equipment, and safety tools are popular items for online shoppers in Australia. In the United States, electronics, apparel, footwear, and jewelry are the biggest sellers.

However, consumer shopping behavior changes frequently. Always review the Amazon Best Sellers section for the most popular products based on sales. Amazon provides lists of the most popular products in dozens of categories and updates the lists hourly.

4. Not Accounting for the Extra Costs of Selling

The cost of selling on Amazon comes with a variety of fees. Before you can sell products, you need to select a selling plan. The Individual plan costs $0.99 per item sold. The Professional plan costs $49.95 per month no matter how many items you sell.

Other Amazon FBA Australia fees include:

  • Referral fees
  • Fulfillment fees
  • FBA storage fees
  • Removal order fees
  • Returns processing fees

Overseas sellers face additional costs. For example, if you ship goods to Australia, you need to pay the customs duty and the goods & services tax (GST). You typically pay a 5% customs duty and a 10% GST, depending on the value of the goods.

5. Not Reviewing the Packaging Requirements

Selling through Amazon FBA offers many advantages, but you need to follow Amazon’s rules to avoid unwanted fees. All items need to comply with Amazon’s packaging requirements. For example, each box needs its own FBA shipping label. You must also wrap all items separately and use adequate packaging material, such as polybags.

Amazon charges unplanned service fees to correct packaging mistakes. Frequent shipping problems may also result in the suspension of your account.

Luckily, you can avoid unnecessary penalties by working with an FBA prep center. At Easy FBA Prep, we handle the prep work, so you do not have to worry about your shipments being Amazon FBA compliant. This gives you more time to focus on other areas, such as selecting the right inventory and setting the right prices.