In whatever decision you take, there are always risks attached to it. Everything has pros and cons, even Amazon.
You cannot always have everything in your favor. Signing up for Amazon doesn’t mean problems won’t head your way. There are the big profits and easy growth in the market worth looking for and certain dangers of Amazon as a seller, that you need to understand before signing up for your seller account.
Although Amazon seems the ideal place to set your business up, don’t get your hopes too high. There are a lot of horror stories related to seller accounts going from a 6-figure income to zero overnight.
Difficulty getting approved
It is getting more and tougher to get the green signal to sell items. With a growing number of retailers on Amazon, the danger of Amazon not approving you as a seller has augmented. It has become stricter in the details and proceedings of the items wanting to be sold. Retailers must be approved, and it isn’t that easy. So, you must have something unique up your sleeve, to impress Amazon in giving you the green light. If you plan to sell something that isn’t cliché, getting approved will be easy.
Another danger of Amazon as a seller is not receiving money immediately. If you happen to sell a product, Amazon will deposit money in your account after every 14 days. Only some old legacy account holders receive the privilege to request payment in 24 hours. So, you would need to build your inventory back up according to the pay dates of Amazon.
The most dreadful danger to face as an Amazon seller is tough competition. The number of retailers is expanding. Not every seller has an out of the box product to sell. Many sellers purchase items from wholesalers in bulk. Here the tough competition of the lowest price starts, if another seller is also selling a similar item. The more similarity in items with other retailers, the tougher the competition gets. This means your profits will be lower than your expectations. Sellers reprice their items to stay in the competition, and the other seller does the same. The winner is the seller who got the lowest cost.
Not that easy to build a reputation
Amazon may have its fair share of trusting buyers, but even then, you have to pave your way to their trust. The danger of Amazon as a seller is that it is time taking to gain a buyer’s trust. The increased number of sellers and the ongoing price war is scary enough. Not to forget about the customer feedbacks. If you happen to provide items of poor quality, negative feedbacks will pool in your review section, and you will be out of the game before you even start.
To steer clear of the dangers of Amazon as a seller, keep your customers happy and fight for your right in the market. Have clever marketing strategies and be prompt in shipment and quality control.