Before registering to sell through Amazon FBA Australia, you should understand what you are getting into. Here are seven often-overlooked challenges of being an Amazon seller.
1. Success Does Not Happen Overnight
One of the first truths to accept is that you will not become a success overnight. There are many details to consider when setting up an Amazon FBA seller account, including:
- Selecting the right products
- Finding a supplier
- Setting up your Amazon FBA account
- Creating and optimising listings
- Setting the best prices
- Creating an FBA shipping plan
Each of these details deserves careful consideration. Attempting to rush the process may keep you from earning a profit.
2. You Must Deal with Tax Responsibilities
Dealing with the tax burden can be a complex process for new sellers. The taxes vary depending on where you sell and whether you are a resident of the country that you sell in.
For example, if you are an Australian resident and not registered for Goods and Services Tax (GST), Amazon Australia must collect a 10% GST for its services.
GST-registered Australian sellers and non-residents also have specific tax responsibilities that can be quite complex to navigate without professional help.
3. You Need Capital to Get Started on Amazon
Getting started with Amazon FBA Australia requires an investment. It is not the most expensive business model but you still need to consider the costs. Here are some of the costs involved in selling on Amazon:
- Inventory
- Product photos
- Advertising and marketing
- Amazon FBA Australia fees
- Shipping and logistics
Starting with more capital allows you to purchase more inventory and buy in bulk. Purchasing a larger quantity of an item may reduce your overhead and increase your profits. Maintaining a larger inventory also allows you to sell to more customers, helping to grow your Amazon seller profile faster.
4. Amazon Has Strict Requirements for FBA Sellers
Amazon FBA sellers who rush into business may overlook a few details, including Amazon’s packaging and shipping requirements. Depending on the product, you may need to use specific box sizes and packaging material.
Failing to meet Amazon’s requirements may result in penalties. Amazon typically charges you when they need to correct packaging mistakes, which hurts your profits. If you make enough mistakes, Amazon can even suspend your account.
5. Comingling Inventory Could Hurt Your Reputation
If you send multiple units to an Amazon FBA Australia warehouse, you have the option of not including an individual SKU sticker on each item. However, if you forgo the sticker, your items may end up mixed with the same items from other sellers.
When a customer purchases that item, Amazon pulls the first product that matches the SKU. Due to the increased risk of counterfeit items, your customer could end up with a fake product from another seller, which hurts your reputation and seller account. The solution is to ensure that each item has its own SKU label/sticker.
6. Duplicate Product Listings May Hurt Your Sales
Other sellers may create duplicate listings of products that you already sell. These listings can drive traffic away from your listings, which can hurt sales. Online shoppers rarely pay attention to duplicate listings and often click on the first result that matches their search.
At least once every month, search Amazon for duplicate listings of your products. If you find other listings for the same products, you may file a ticket with Amazon Seller Support. Amazon may merge the listings or remove the duplicate ones.
7. You Need to Promote Your Products
The idea that good products sell themselves does not typically work well for Amazon sellers. You need to take additional steps to drive traffic to your product listings, such as optimising your listings and using advertising.
You have a variety of resources available to promote your products, including Amazon Ads, Google PPC Ads, and social media advertising. You should also take advantage of marketing tactics, such as running special promotions on social media sites.
Conclusion
Selling products through Amazon FBA Australia comes with challenges but also offers great potential. Understanding the difficulties of becoming an Amazon seller can help you avoid common pitfalls.
Using an FBA prep service is one way to boost your chances of success. At Easy FBA Prep, we help streamline the way you fulfill orders. An FBA prep centre saves you the hassle of dealing with packaging requirements, allowing you to focus on other areas of your eCommerce business.
Instead of worrying about FNSKU labels, polybags, and other fulfillment details, you can work on your marketing tactics and spend more time selecting the best products to sell on Amazon.