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5 Mistakes New Amazon Sellers Should Avoid

Amazon is a platform intended for you to build a successful business upon, selling premium products – preferably your own brands – with exceptional standards of customer service, and getting all those things right requires quite a steep learning curve.

Amazon Sellers

With this in mind, these are the top seven mistakes almost every new Amazon seller makes and how you can avoid them!

Stick to these rules and you will not only save yourself time, money and heartache but you will also achieve your goals much faster.

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1. Don’t Try to Run Before You Can Walk

Of course, you want to get started! I get that. Your enthusiasm and motivation are at its peak when you’re getting a new business off the ground, but you simply must be realistic about what you can and can’t do. There’s no point in getting ahead of yourself and trying to create an empire when you haven’t listed a single product yet.

By all means dream – dreams are what motivates us – but in reality, every business must start small and grow. This is particularly true if your budget is tight. Know what you’re capable of, how far your knowledge and buying power goes, and start by taking baby steps.

Get your first product researched, sourced and listed – and most importantly actually start making sales before you start adding multiple products and trying to rival long established companies!

2. Don’t Be Unwilling to Invest the Money!

I’m not sure why, but for some reason, many people hold the belief that starting and building an online business takes absolutely no money and all they need is an internet connection to access great riches!

This is simply not the case for Amazon (or eBay) businesses or indeed any eCommerce venture. This type of business – just like any other – requires investment if you want to build a real, successful business.

There will be costs such as Amazon fees and there will also be variable costs, like marketing and so on. Most obviously you will need to invest in a stock, and whilst it’s possible to do so with less than £1000, I always recommend an initial investment of around £1500.

You’ll then need to reinvest your profits for as long as possible before you even contemplate taking any profit for yourself!

3. Don’t Pick the Wrong Product!

This sounds obvious of course but you would be surprised at the number of newbie sellers who totally underestimate their buying power. The issue happens because you make the mistake in choosing a product that you think is perfect, based only on its selling price of, let’s say £100 for example. That’s a decent amount and you want some of that action, so you’re feeling confident because you’ve got £1000 to spend on the stock…

Unfortunately, even though £1000 is a good investment, it’s not going to allow you to invest in a product that retails for £100. Depending on the product, you may be able to purchase a few units but that isn’t enough to be able to get the best deal from the manufacturer. It’s essential that you choose the right product for YOUR buying power. This is crucial and is vital to your success!

4. Don’t Try and Compete with the Lowest Price!

This is a recipe for disaster! The simple truth is that your buying power and sales volume won’t support this strategy! And anyway, why would you want to cheapen yourself and sell low priced products?

There will always be sellers on Amazon with rock-bottom prices who are simply turning money or using the product as a ‘loss-leader’. These businesses will have the buying power to purchase container loads of stock at a time giving them the best wholesale prices and lower shipping costs. There is no way you can compete with that – so don’t even try.

Instead, price for a decent profit, offer a free gift or incentive, provide fast dispatch and shipping and second to none customer service along with a quality product. Take a look and you’ll see that prices vary wildly on Amazon for the exact same products, so you do not have to be the cheapest seller!

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5. Don’t Expect Results Overnight

Building an online business takes time, effort and patience so don’t expect results like magic. Slow and steady is the way forward and whilst that may seem frustrating, persistence will pay off as long as you ensure you stay motivated, set goals, celebrate achievements and milestones – however small, and make progress every day.

The temptation to quit after a month – or even a year – will sometimes be great, particularly if you hit a hurdle or make a mistake, but actually, your biggest mistake – and ultimately your biggest regret – will be to throw in the towel.

It’s important that you understand you are in it for the long haul and quitting is the easy option, which leads nicely into mistake number six