Why People Fail Amazon FBA Online Arbitrage: 8 Reasons Uncovered
FAQs
What are the most common struggles new Amazon sellers face?
The top struggles include having unrealistic expectations about ease and speed of success, focusing more on sales volume versus healthy profits, and not having strong systems and processes in place early on.
Why is it important to track detailed financial records?
Careful accounting of all costs and sales data allows sellers to accurately calculate profit margins and make smart decisions about growing inventory, managing cash flow, and scaling the overall business.
How can negative product reviews be avoided?
Vetting inventory carefully before shipping and providing excellent customer service helps avoid situations that lead to negative product reviews which can significantly hurt sales.
What policies must be followed to avoid Amazon account suspension?
Amazon sellers must adhere to all policies around prohibited products, counterfeits, trademarks, listing accuracy, order defects, performance metrics, and more. Carefully staying compliant is crucial.
Why is cash flow management so important?
With an Amazon FBA business requiring upfront inventory investments, cash flow must be closely monitored. Smart financial planning ensures expenses and purchases can be covered through sales.
What systems should be implemented when first starting out?
Documenting consistent processes for product research, inventory management, order fulfillment, customer service, and other tasks sets up efficient systems to support scaling the business.
How can sellers avoid expanding their business too fast?
Growth should align with available time, resources and finances. Moving in phases based on profitability allows managing expansions smoothly and sustainably.
