Since its establishment in 1994 till today, Amazon has managed to inspire the world with its innovative approach to buying and selling which only tends to get better by the days. Net sales of about $ 136 billion in 2016 followed with an income of 2.4 billion, employment of 45000 warehouse robots to maximize efficiency, hundreds of brands, 100,000 plus sellers and more are only reflective of the phenomenal, rather unstoppable progress of this marketplace. Amazon selling thus spells enormous possibilities of growth and profits for all sellers, irrespective of their volumes or nature.
Promising as it may be, selling in Amazon does come with its share of drawbacks that have been experienced by a growing number of sellers in this marketplace. Some of the most common factors that annoy the latter to tears can be mentioned as follows…
Cut throat competition –
While no one can deny that Amazon always overflowing with target buyers, it is also true that the number of sellers in this marketplace is way too high. Touching the 100,000 mark and counting, it is only obvious that competition is rather unforgiving in this marketplace. Therefore, sellers that do not take active steps to maintain high ranking can face serious consequences in the form of irrecoverable invisibility.
Sellers that are powered with solid integrations and multichannel syncing like Walmart Bigcommerce Amazon integration, have been seen to withstand the flood with success.
The web of fees –
Amazon selling is shrouded with a web of fees and commissions that are often incomprehensive to most sellers, especially beginners in this marketplace. From commissions to marketplace fees, from warehouses charges to FBA, there is a complex structure of payments that sellers need to navigate through in order to win even a cent in the name of profits. This complexity often gets the better of sellers till the time they integrate with high quality fee and profit calculation tools for redemption.
Impact of poor reviews and rating –
Amazon strictly upholds the fact that the customer is always right. Therefore, sellers are often seen to bear with returns and refunds with a smiling face for reasons that hold no ground. At the same time, sellers often find themselves dealing with nasty reviews from buyers for otherwise forgivable faults. This takes a toll on their visibility and ranking with no support from Amazon whatsoever.
The mystery of the buy box –
Lastly, the matter of the Buy Box and how to qualify for the same still remains a mystery with most sellers. Even the best of integrations, best of prices, best of reviews and best of listing practices have failed many sellers in gaining or retaining their place.