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5 Common Challenges That Amazon Sellers Face

5 Common Challenges That Amazon Sellers Face

Being the current boss when talking about eCommerce platform, Amazon’s progressive revenue and policies do attract a lot of sellers worldwide. Amazon is the biggest retailer in the world 4th most valuable public company in the world. These statuses and other eminent labels are just enough to magnetise global sellers, manufacturers, distributors and customers as well. The company also boast a strong customer database as compared to other eCommerce companies which makes it a more challenging marketplace to sell products. To make their product successful on Amazon, sellers also outsource Amazon product listing services.

It wouldn’t be wrong to say that many sellers actually face some serious challenges when selling on Amazon. Check out the 5 common challenges that Amazon sellers face:

1- Catalog System

The sellers are required to enter UPC to find out if there is a catalog page which is matching with the product details on Amazon. The platform uses a catalog-based system. And thus, the seller doesn’t require to create a separate catalog page for their product for which there may be a catalog page already exists on Amazon. But if they use the existing catalog page, the sellers would have no control over titles, descriptions and images. But the sellers can create a new ASIN to enjoy full control on the catalog page. 

2- Performance Targets

To provide a healthy platform to the potential buyers and establish a safe shopping environment to buyers, Amazon has performance targets for sellers. If the seller has failed to achieve this target, it may result in permanent and immediate suspension of the account.

In many cases, sellers outsource Amazon product listing optimization to organically beat the opponents and become the king of their category.

Here are some measurements that are demanded by Amazon:

    Maintain less than 1% of order defect rate

    Maintain pre-fulfilment rate of less than 2.5%

    Maintain less than 4% for late shipment rate

Amazon uses customer metrics and informs the seller immediately if it goes off the target.

3- Policies & Restrictions

There are some products which are listed under banned or restricted products. Every seller should go through the restrictions and policies and terms & conditions before starting selling on the platform. If it goes otherwise, the Amazon has the full authority to suspend the account without any prior notice.

4- Too Much Competition

The brands have several numbers of distributors and sellers. When these sellers come on Amazon, selling the same product under huge pressure of competition, they tend to low down the price. In this kind of scenario, the profit margin also goes down.

There are also chances of getting negative feedback from the fake buyers who are taking the side of your competitor. Outsource Amazon product listing services to avoid such hurdles.

5- Selling Permissions

The selling permissions are very restricted on Amazon; for instance:

    Many huge brands are restricted on Amazon and thus, sellers have to contact the brands directly to seek permission to sell on Amazon.

    The category options are more for all sellers but much less for professional sellers.

Written by Alice Walker