Top Mistakes Beginner Amazon Sellers Make | Amazon FBA 2021

Today I talk about the top mistakes amazon FBA sellers make when first starting to sell on the marketplace! Avoid those mistakes at all costs!

Credits:
Music by Mark Generous - Only You - https://thmatc.co/?l=CC691DCD

Video Parts:
0:00 Intro
1:15 Mistake #1
4:06 Mistake #2
5:45 Mistake #3
8:12 Mistake #4

~Rough Transcipt~
I have been running my amazon e-commerce business for well over a year now, and even though I still have so much to learn, I wouldn't say I'm a complete noob anymore. From being in various Facebook groups to chatting with complete beginners in my DM's, I've noticed a few similarities when it comes to traps most newbies fall into.

In this video, I want to talk about common mistakes beginners make when starting their amazon e-com business, how to avoid them, and also how to recover from them if they happen to you.

PART 1: Saturated niche
This one is probably the biggest offender. Most beginners often default to software like Helium10 or Jungle Scout to go hunting for products that are in demand. That method alone would have worked perfectly maybe 3-4 years ago but now it requires a bit more elbow grease than doing just that. Since most people enter similar filters when looking for their first product (lightweight, medium demand, 20$ range), you end up seeing what everyone else sees. Combine that with the lack of proper deep niche research and unique differentiation, and you end up launching what 50+ other sellers are already selling. This crowds the market and that is simply not big enough to support all these sellers. That in turn leads to a race to the bottom with everyone dropping their price to compete.

Very popular products like the jade rollers/derma rollers might look promising because there is so much money to be made, but the market is usually DOMINATED by a few sellers and you have virtually no chance of competing against them.

PART 2: Too attached to your product
This one perfectly describes the concept of sunk cost fallacy which is when you delude yourself into thinking you must invest more resources into something because you have already invested so much in it already... even if that something is losing money and becoming a liability. Usually, that can happen with someone's first product. You spent so long researching in, you invested all this money in it, and now that you've launched and did the marketing work, crickets... I'm all for keeping at it for a while and trying a different sale boosting strategy, but after a while, you must move on and go back to the drawing board.

Not to be a Debbie-downer, but most seller's first product is a failure. So it's better to fail fast and recover even faster, than dwell on it forever.

PART 3: Too expensive/Too cheap product
The next one is regarding cashflow and profit margin with this issue presenting itself at both ends of the spectrum. On one end, an expensive product might be a good strategy because you're setting a higher barrier to entry for future competitors. So if you've got plenty of cash, by all means, go for it! On the other hand, if you're just starting, maybe not the best move. Usually more expensive means, more bulky, heavy, complicated (ie. electronic), so make sure you're ready for all the logistical challenges that may ensue.

On the other hand, also steer clear of really cheap products (sub 12$). While they might be cheap and easy to source, you run the risk of being placed as an 'add-on' item by Amazon and will not have that much leeway for PPC and other expenses.

PART 4: Fad/seasonal products
Again, this one is tricky for beginners, because you have to time your logistics perfectly which can be a supply chain nightmare for someone who is just starting out. Selling Halloween decorations or Valentines Day's gifts can be highly profitable during those punctual periods, but require very skilled timing to make sure your inventory gets in time, that you don't run out of stock, or you're not left with too much leftover product after the holiday has passed.

Same for fads, try to aim for evergreen products, and not hot selling short-term items.