Whether you’re an Amazon seller or planning to start selling on Amazon, you know it’s easy to get lost on the Amazon market. There is so much information online about how to successfully sell on Amazon that it can be hard to tell fact from myth.
Disinformation is your enemy! This can weigh you down and prevent your business from succeeding on Amazon.
Doing your research on Amazon is part of the key to successful sales. While there are other things you need to do right, like writing an optimized Amazon listing and getting positive customer reviews, knowing Amazon certainly helps. We’re here to help you navigate the intimidating world of America’s largest e-commerce site and help you distinguish fact from fiction.
Myth #1: You don’t need to take a course to get on Amazon.
The development of technologies and algorithms does not allow for stagnation either in the technical part or in the field of knowledge. Information literacy of a specialist in e-commerce is the key to successful business. Therefore, the belief that there is no need to learn how to work with Amazon does not seem to be viable in today’s conditions.
If you go back 4-5 years ago, then you could still start selling without special training. Now, when the site literally changes every day, training is indispensable.
Tip: at the initial stage, you will need a curator who will advise and help in incomprehensible situations. Amazon is now a far from intuitive platform.
Even with an official course, without the support of a curator, you cannot do everything right, as there are many pitfalls and unique situations. In this case, informal courses will not help – the information will be outdated, and the sequence of actions will not always be clear. Any experienced salesperson will tell you that the price for a mistake due to ignorance will cost much more than the course.
Myth #2: You can start trading with $200
We recommend starting from $3,000 for the Online Arbitrage strategy and from $10,000 for the Private Label strategy, with smaller amounts it will be almost impossible for a beginner to enter, since this is a very competitive platform.
D not forget that this is a business, and as in any business there are additional costs – for the same account and applications. In addition, we must not forget about force majeure, when a limited budget will tie your hands.
With dropshipping, your costs may be less, but now I don’t advise doing it, Amazon is trying in every possible way to punish this scheme of work and all the friends who work this way have been doing this for a long time, and they have promoted accounts. They know all the tricks!
Myth No. 3: All niches are occupied, there are no ways for development
As with any marketplace, Amazon has become much more competitive over time. But at the same time, the share of e-commerce and, accordingly, Amazon itself is growing. Therefore, everyone will be able to bite off their piece from the big pie.
The growth is also confirmed by official statistics – in July 2020, the number of visitors to the site increased by 1 billion people compared to July 2019. The expansion comes at the expense of new countries. Most of the sales are in America, but Amazon already has a presence in Europe, Canada, Australia, Dubai, and more.
These are all countries with a high standard of living, hence a high degree of solvency of the population. Amazon’s market share in these countries is not that big, and explosive growth is yet to come, which is an opportunity for new sellers.
Myth #4: It’s hard to compete with Chinese sellers
Many worry that it will be difficult to compete with Chinese sellers for obvious reasons: all goods are made there – prices are often lower than those of sellers from other countries. But the market is big and growing.
Yes, it may have been easier before, but even now you can enter the market and start from scratch. In addition, many Chinese sellers find it easier to sell goods on local platforms.
Myth #5: You can launch a product without investing in advertising.
The competition is high, and this kills organic search at the start, so now it’s just not possible to simply unload the product and get sales. I have not seen such examples in recent years.
Depending on the competitive environment, advertising costs will vary. To launch a product in a weakly competitive niche for internal advertising, we spend around $ 50 – $ 100 per day. Plus, to increase the position of the product in the search results, we make 50-60 purchases of the product at the start.
In the case of the Online Arbitrage strategy, advertising is not needed, here you go with exactly the same product to an already promoted card and start selling according to organic results.
Myth #6: You need a US company to sell
A company in the US brings some benefits: category opening, Amazon’s more loyal attitude in terms of inspections, the ability to work with large wholesale suppliers within the US. However, this is an optional condition, you can work simply by registering with a passport.
It is long and difficult to register now, the curator’s help or advice will not hurt. But in any case, it is possible without registering a company in the United States.
Myth #7: I have experience in e-commerce, so I’ll figure it out as I go.
Amazon is a platform with its own rules and algorithms, without knowing which you will not succeed.
For Amazon to bring real results, you need to understand how the system works and objectively assess the situation in the market. Whoever owns the information owns the world. Successful work and growing performance!
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