challenges for business starters on amazon

5 Challenges New Sellers Could Face on Amazon

In its piece on Small Businesses, the Wall Street Journal claims that Amazon is a new seller’s rival and partner, alike. While it may be hard for a newbie to initially boost their sales ranking on Amazon, the online store is genuinely a great place to sell your product.

Nevertheless, sellers who may not know much about the business may face hurdles.

1.    Understanding Tax Requirements

While you are setting up you seller account, Amazon will ask you to structure:

  • Tax collection systems
  • Product tax codes and rules
  • Review them both.

Tax challenges also arise again when you have to register as a legitimate business and file your sales returns.

Amazon tries to help sellers understand the requirement through their product sales tax codes. However, the procedure becomes a lot more complicated as sellers add-on more services, like FBA.

2.    Finding Products to Sell

According to a survey conducted by Amazon Product Research experts Jungle Scout, almost 50% of people who intend to launch a startup on Amazon could not find the right product. Here is what you can do:

  • Regularly checking up on Amazon’s bestseller lists and discovering products that are selling well.
  • Seek out categories that tend to have affordable products with fewer sellers.
  • Visit your nearest thrift store or yard sale to resell used goods.

3.    Classified Categories

There are a few categories on Amazon that newbies can’t access, like Beauty, Grocery, Health and more. These categories are relatively sensitive and a potential mishap can taint the Amazon brand, forever. Only the most trusted sellers are allowed to sell here.

However, you can still get approval, eventually:

  • Go for a pro account – this is necessary.
  • Have a very low order defect rate.
  • Have a quick shipping record.
  • Have great customer services.

Once you feel you have aced these requirements, you can apply to sell restricted goods.

4.    Product not qualified for FBA

Amazon’s FBA service may not let sellers ship products they believe may lead to dangerous problems in the fulfillment centers. Amazon includes all products, the U.S. Department of Transportation lists, as being hazardous in their restricted list. A few of the products include:

  • Automotive care fluids, like engine oil.
  • Window cleaning equipment.
  • Household and laundry cleaners and detergents.
  • Other oils and fluids.

In most cases, the only choice is to go for Fulfillment by Merchant (FBM) and ship the product yourself.

5.    Data Analytics

According to Forbes, the demand for data analysts has grown by 27% over the past year. It seems that businesses are beginning to realize the importance of combining comprehensive data with business analysis.

Data analytics act as the make-or-break factor in your Amazon business startup. If you employ an Amazon market research and analysis tool early on in your entrepreneurship, you have a better chance of growing your business to a stable entity.

AMZ Insight is the ultimate competitive edge. The tool contains the following features:

  • Keyword monitoring tool for amazon
  • Amazon keyword planner
  • Amazon sales rank tracker
  • Price and Review tracker
  • Bestselling rank tracker
  • Various other logistical tools.
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