The Biggest Mistakes That Ecommerce Businesses Make on Amazon

The Biggest Mistakes That Ecommerce Businesses Make on Amazon

Today's consumers shop online a lot. Amazon is the largest ecommerce platform. Amazon offers lightning fast 2-day shipping and competitive prices so shoppers can purchase almost any product.

Although Amazon is an enormous ecommerce platform, it can be difficult to sell products there.

These are the top five most common mistakes that businesses make on Amazon. We explain why they are important and what you can do to avoid them.

1. No pricing or fulfillment strategy To be successful selling on Amazon, businesses must have a well-thought out pricing strategy and ecommerce fulfillment strategy. Fulfillment and pricing are the two main factors in determining whether you win the Buy Box on Amazon.

How can Amazon sellers survive the COVID-19 pandemic? Over a third of sellers have had difficulty maintaining consistent sales. It's crucial that Amazon sellers understand how to optimize product listings and order fulfillment.

What are my fulfillment options with Amazon?

Amazon order fulfillment is the process of picking, packing and shipping online orders to customers. Simply put, it's how you get your product to consumers. Each fulfillment option for Amazon sellers is handled differently.

Fulfillment from Amazon (FBA).

Fulfillment by Amazon is when Amazon ships your products in accordance with their standards.

This strategy will allow you to receive Prime Status, and be eligible for 1- or 2-day shipping.

Another thing to remember is that you will lose control over the brand messaging that your customer receives in the package they receive. Amazon will send your products in a smiley box.

Prime Seller Fulfilled (SFP).

Seller-Fulfilled Prime is when you are responsible for shipping and warehousing your products.

You can also earn Prime Status if you meet Amazon's stringent fulfillment guidelines.

This will help you avoid FBA charges from Amazon. If you have only one US shipping address, however, it could be costly to meet Amazon's stringent shipping requirements. Third-party fulfillment companies that specialize in shipping can reduce shipping costs while still allowing businesses to offer Seller-Fulfilled Prime shipping.

Fulfilled By Merchant (FBM).

Fulfilled by Merchant allows you to warehouse and ship your products or have them shipped by a 3PL. While Fulfilled by Merchant does not grant you Prime Status, you will be able to set your ecommerce shipping times as well as your brand messaging. Your products won't be tied with Amazon's packaging.

2. No product listing strategy Consumers will decide whether to purchase your product based on the product listing. It is therefore crucial that you have a product listings strategy that works. These are the key areas of your product listing that you should focus on in order to be successful.

Optimizing product information for Amazon To please Amazon's algorithm, there are several things you can do.

Keywords Use relevant keywords in your product listing to determine the type of searches you show up in.

Completeness When creating your product listing, make sure to include as much information as you can.

Amazon prefers listings with detailed information. The more information you provide about your product upfront, more likely customers will buy it.

Be cautious when sending your feed from your website. Amazon fields that are not found in standard product feeds would be left empty. You should ensure that you fill out all fields.

Additional content To describe your product in an original way, use enhanced branding content. You can use this feature to include text and images in your product description to tell a more detailed story about your product. You could, for example, include an infographic on how to use your product in the product listing.

Optimizing product listings titles for the consumer Your listings must appeal to customers as well as Amazon. These are some important tips to increase your clickthrough and convert more customers.

Titles Your product listing title should be both keyword relevant and easily readable. The product title should contain all the important information such as keywords, product details, and be concise enough to allow potential buyers to read it in its entirety.

You should also include details about the product, such as your brand name and product name.

Amazon Ads allows you to test titles and see if Amazon reduces the title. This will ensure that the most important information remains visible to customers.

Informative descriptions Your product descriptions should clearly communicate your unique value propositions. Highlight key benefits and features, and state why your product is different from other products. Clear titles and descriptions of your products will help reduce returns and negative reviews.

Video and images of high quality The featured product image will be the first thing that catches a customer's attention and make your product stand out. Your featured image should be high-definition, and clearly show what your product is.

Once a potential buyer clicks through your product listing, images are equally important. They can make or break a sale. Images should be taken from various angles to show the product in action.

Upload product videos to Amazon if your listing allows. Videos showing a 360-degree view and instructions for use or installation are the best to show off.

3. Amazon is not a place for advertising It can be hard to get your products noticed by Amazon and make yourself stand out from the rest. Many businesses opt for not advertising on Amazon altogether. Amazon is its online marketplace, so if you don't advertise there you won't be able to access it. These are some of the benefits that could be derived from the ad platform.

Conversions can be increased Amazon Ads are known for their high conversion rates. The average conversion rate for Amazon pay per-click ads was 10%. This is a remarkable conversion rate compared to other advertising platforms. Amazon shoppers already have high purchasing intent which makes it easy to increase sales through paid ads.

Improve rankings Amazon advertising has been shown to improve your organic performance. Your sales rank will increase as you sell more. Amazon's organic rankings change frequently throughout the day.

Make sure you test and measure the effect of your sales and ads on your organic traffic.

Be discovered by more people You're losing out on market share if you don't advertise on Amazon. According to Amazon, 42% of Amazon shoppers don't scroll past the first page. You're missing more than half the shoppers if you don't rank organically on page 1.

Be the best Amazon advertising isn't as popular yet, so you might have the first-mover advantage. Amazon has experienced tremendous growth year over year, despite the fact that there are many companies on Amazon. This is due to more people buying online. Despite the volume of Amazon Ads, there is still a lot of competition and room for new players.

4. Amazon Advertising Mistakes You might not be correctly advertising your products even if you are already selling them on Amazon. These are the most common mistakes that businesses make when advertising on Amazon. Here's how to avoid them.

Poor account structure How your products are categorized will depend on how well you structure your advertising campaigns. Incorrect reporting can result from poorly structured campaigns that lack categorization. Make sure to use detailed categorization techniques so similar products can be grouped in the same campaign.

You may not use all types of ads Many sellers only use one type of ad, such as sponsored product ads. This is a mistake as not all consumers will view the same ads and treat them differently. Diversifying your ad types is a better strategy, such as product display ads and headline search ads.

A competitor strategy is not a good idea.

Amazon is full of competition. Competitors can show ads in different places on your product listing page. It is easy for businesses to be undercut by their competition. Your sales may drop if you don't have an Amazon competitor strategy.

To get your products in front of potential customers searching for the competitor's brand, one strategy is to target keywords from your competitors. Targeting a competitor's product detail pages is another strategy. This involves placing your ads on the product's listing.

Modifiers for targeting and placement bids Targeting bid modifiers and placement bid modifiers can be important optimization tools to increase your ad visibility. These tools can cause a decrease in ad performance. You can bid higher on placements where your ads may appear. Targeting bid modifiers allow you to adjust your bid depending on the type of targeting being used (e.g. close match or loose match).

Not utilizing negative keywords Negative keywords let you select words and phrases that you don't want to be found for. If you sell a case for the iPhone 10 but not the iPhone 4, then you can exclude "4" (your neg keyword) from your search queries to ensure you don't appear for "iPhone 4 case" searches.

Negative keywords can prevent your ads from appearing in unrelated searches, which will waste your budget. To ensure that your budget is being used effectively, you should continuously and thoroughly examine your search terms report.

Inadequacy of testing Amazon Ads is an ever-evolving platform. The best advertisers will test different strategies and evaluate their performance, without having to test everything at once. You can always modify a strategy and test it again if it doesn't work. To find the best strategy, you should try many methods.

Conclusion You must ensure that your strategies are as effective as possible if you want to sell on Amazon.

To help you reach your full potential on Amazon, you can seek out trusted partners like Logical position.