Selling on Amazon can be a lucrative business venture, but it is not without its challenges. From dealing with suppressed listings to seeking approval to sell in certain categories, there are many hurdles that Amazon sellers must navigate. In this article, we will explore ten of the most common problems that sellers encounter on Amazon, including issues with product listings, competition for the buy box, and the complexities of selling on multiple marketplaces. Whether you are a seasoned Amazon seller or just starting out, understanding these challenges can help you better navigate the platform and achieve greater success in your business.
1. You are required to submit ASIN’s
ASIN stands for Amazon standard identification number and every product has to have one. It is how the product catalogue is produced and is an attempt at trying to prevent multiple listings of the same product. If a specific product is already on Amazon then you will be unable to list the product as new and instead must search endlessly through the catalogue to find the existing one. If the product does not exist then you will have to create a new product and submit a UPC (unique product code) - only then will have Amazon supply you with an ASIN. As you can imagine this is time consuming especially if you have multiple products to upload and if you are making the products yourself then it becomes even more challenging.
2. Product listings get removed
It is not uncommon to receive emails from Amazon stating that listings have been suppressed, removed from the buy box due to another seller offering the product at a cheaper price or from not having the correct permissions.
3. You have to seek approval to sell in every category
If you list a product in one category, you will need to ask Amazon for approval to sell for that item. After you are approved you will be able to continue listing to that category without issue but if you wish to sell a different type of product that belong in a different category you will have to seek approval again before you can sell in that new category. This adds to the frustration as a seller and is something that is not an issue when selling on other marketplace platforms such as eBay or Etsy.
4. You need permission to sell branded products
In some cases you will be asked to provide a proof that you are allowed by manufacturer or distributor to sell a specific product and typically Amazon will ask that you provide an invoice that states a specific number of units before you are able to sell it.
5. Sometimes the catalogue malfunctions
We have had it so many times when we check a sale and our product image and title has changed to a completely random item that we are not even selling, this results in us having to cancel the order, getting penalised and the customer being unhappy with the poor service, this is of course Amazon’s fault but the buyer and seller are the ones who miss out.)
6. Customers can open an A-Z claim
Even if you work with the customer to resolve issues, if the customer makes a complain to Amazon customer service, this usually results in the customer keeping the goods, getting a full refund and you get penalised with a strike on your account which lowers your reach for the other products you are selling.
7. Every product listing is based on rank
if you sell lots of product your rank increases but if you have not sold one yet and the category is flooded with similar products you may never sell.
8. You have to compete for the buy box
competing for the buy box typically means unless you are willing to sell the product at the cheapest price, you will not be able to sell it. If you are sourcing the product and have the best profit margins then its great but if your competitors are able to get the product cheaper than you, your chances of selling that particular item is slim.
9. Selling on other marketplaces is not straight forward
(In comparison to selling on eBay where you can select an international shipping price, on Amazon you will have to register on the Amazon German marketplace, and every marketplace for each country you wish to ship your product too, and also you will need to add custom pricing for each country, this can be a huge hassle.
10. Amazon Valid Tracking Rate Issue
These problems only just scratch the surface of what it is like to be a seller on Amazon, some other issues that you might face is difficult customers who abuse buyer protection, unhappy customers who wish to return a product, changing tax laws, changes to fee structures, and poor customer service with Amazon when there is a problem.
11. The Different Amazon Marketplaces
Amazon operates in various countries, providing sellers access to a global customer base. The key marketplaces include Amazon UK, Amazon India, and Amazon Global. Selling on Amazon across different countries means dealing with different rules and regulations for each one. Keeping up with these varying requirements can be overwhelming and complex.
12. The Costs of Selling on Amazon
Selling on Amazon involves various fees that can make it challenging to understand your profit margins. These include referral fees for promoting your products, closing fees for media items, shipping fees if you handle fulfillment yourself, and additional costs if you use Fulfillment by Amazon (FBA) for storage and order handling. With these multiple fees applied, it can be difficult to accurately calculate your profitability and ensure your pricing remains competitive.
13. Complicated fulfilment methods
The problem with Amazon’s fulfillment options is that they add complexity to the selling process. Choosing between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) can be confusing, as each comes with its own set of requirements and implications. FBA involves sending your products to Amazon’s warehouses, while FBM means handling all storage and shipping yourself. Managing these options and understanding how they affect your business operations and costs can be difficult, making it challenging to streamline your fulfillment strategy.
14. Navigating Amazon's learning curve
Selling on Amazon involves a steep learning curve that can impede your ability to set up and run your business smoothly. The vast amount of information and numerous tasks—ranging from setting up your seller account to understanding fulfilment options and international expansion—can be overwhelming. A checklist for getting started on Amazon would be extensive, highlighting the many steps and details you need to address. This complexity can distract from focusing on growing your business and may hinder your initial setup and overall success.
15. Challenges in Optimising Your Listings
Optimizing your product listings on Amazon can be extremely challenging due to strict approval processes and limitations on editing. If you didn’t create the original listing, you may not have the ability to make necessary changes, even if you are the sole seller of the product. This restriction means that you might face issues such as negative reviews and return surcharges if the listing does not accurately represent the product. The inability to update listings to reflect product changes or correct errors can lead to customer dissatisfaction and financial penalties, making it a significant flaw in Amazon’s system.
Disclaimer: The information provided in this document is based on the findings and opinions of Ryan and reflects his personal experiences and perspectives. It is intended for informational purposes only and may not apply to every seller or situation. Readers are encouraged to conduct their own research and consider multiple sources before making decisions related to selling on Amazon.
