Common Challenges Amazon Sellers Face

3 Common Challenges Amazon Sellers Face

If you’ve ever dreamed of being an entrepreneur, why not partner up with the largest company in the world?

Right now, 50% of Amazon sales are a result of third-party sellers. This means you can start an Amazon business that can allow you to earn some significant cash on your own terms. 

However, no one is giving out free money, so if you want to master this platform, you have to understand the inherent challenges that come with the territory. Once you understand some common Amazon challenges that people face, you’re well on your way toward entrepreneurial success. 

We’re happy to help. 

Below are some of the most common Amazon challenges that you are likely to face when you’re just getting started. 

1. Failing To Understand The Platform And How It Works

Simply understanding the Amazon platform and how it works is one of the biggest problems faced by Amazon sellers.

First, get to know the differences between being a Fulfillment By Amazon (FBA) seller and an Amazon Marketplace seller. The FBA program allows you to ship items to Amazon warehouse, where they will store them and process orders. From there, you receive your cut of the profits. 

With Amazon Marketplace, you have to store your items yourself and ship them directly to the customers. The type you decide on depends on what you sell, at what volume, and what kind of work you’d like to do. 

From there, get to know the algorithms, how to win the buy box, and other matters that come into play. 

2. Finding Capital To Become An Amazon Seller

Selling on Amazon requires you to drum up some capital that will help you get started in earnest. 

Figure out how to hit the ground running with your business, whether that means taking out a loan, cashing out some of your retirement savings, using credit cards, or simply starting small and working your way up.

Thrift stores are a great way to get started due to the low cost of entry. From here, you can keep reinvesting your profits in order to grow your capital and build your business to higher levels. 

3. Minimizing Fees And Overhead Costs

When running an Amazon store, it’s absolutely necessary to get a handle on your overhead costs. 

Invest in quality bookkeeping software so that you can track every detail. Learn which items you can write off and classify as a business expense, and make sure that you’re aware of state sales tax and various Amazon charges.

Learn as much as you can about Amazon deductions and fees that are commonplace for FBA sellers and Amazon Marketplace sellers alike. 

Face These Amazon Challenges Head-On

The tips above will help you out when you’re ready to start your Amazon store. Understanding the most common Amazon challenges will get you started on the right track so that you can move accordingly. 

Browse our other articles for more information related to not only winning big on Amazon but also understanding more about business and technology as a whole. 

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