Someone just launched their product on the Amazon marketplace with high hopes for a successful business. During the process, however, they're faced with the complexity of the system and its policies. Sounds familiar? Because it is; every novice seller out there has experienced it.

Suppose you aspire to be in a position that can end this dilemma. In that case, consider a career in account management. You could be the middleman between the management teams and the sellers, and encourage business growth. But how can you go about doing this when you're starting from scratch?

If you think that someone like you, a non-US entrepreneur, can't play a major role in the success of an Amazon business, then you're wrong. Let's redirect your perception with this post about sellers' challenges and Amazon online business training.

10 Most Common Challenges Newbie Amazon Sellers Face

Do you want to help a newbie Amazon seller? They often deal with problems in the platform that are difficult to solve independently. That's where you come in and assist them using your expertise. But before we get to your next career step, let's look at ten of the most common issues your future clients may face.

amazon business course - businessman stressed while talking on telephone

#1: Incoherent Communication with Amazon

Newbie business owners are often clueless about the ins and outs of Amazon. It's not unusual, so sellers assume that customer service is always efficient. Unfortunately, many sellers actually find it difficult to communicate their issues on the Amazon store. 

For example, those who inquire about reasons for account suspension or appeal feedback couldn't get timely answers (or any at all). Sometimes, the responses of each support rep are also different, confusing the sellers even further.

#2: High Market Competition

The tension of competing against millions of sellers in a huge market like Amazon can be nerve-wracking for a startup brand. Naturally, competition is always there because your client isn't the only business selling a certain product or service. However, winning against well-established brands adds up to the challenge.

This is especially true with sellers who can't afford to spend much on paid advertising programs like Amazon PPC or those lacking time to implement effective Amazon SEO strategies. Furthermore, these marketing concepts might still be foreign to them; staying on top of the game is hard.

#3: Pricing Wars

There are several reasons your client's toughest competitors are at higher ranks, and competitive pricing is one of these. As a result, many sellers bite at the temptation of offering rates lower than their precedence (although it's a risky attempt you wouldn't want to recommend) just to compete.

The pricing rivalry becomes even more difficult because everyone wants to appear in the Buy Box spot. It's where products get featured, a great opportunity for Amazon businesses to increase brand awareness and sales.

#4: Strict Product Return and Refund Policy

At some point in your client's journey, they might have to deal with unsatisfied customers looking for a product return or refund. But that's not the main problem for Amazon FBA sellers; the thing is, the process and regulations for these matters can be confusing and time-consuming.

For example, a seller has to issue a refund to avoid suspensions, regardless if the customer's reasons may come off as invalid. Another is the free return policy for selected product categories. This means a customer can buy multiple products but only keep one and return those they didn't like. This causes high return rates and expenses for your client.

#5: Incentivized or Fake Reviews

The next challenge is getting product reviews to build your client's credibility on Amazon. Unfortunately, it's not uncommon that some sellers use black hat methods like providing financial incentives to get lots of reviews. Amazon already prohibited its users from offering any kind of compensation, but it's still happening and giving newbies a hard time. 

Although product reviews are just one of the many factors influencing sales, they have the power to make or break your client's business. Many buyers rely heavily on these ratings, so your client must monitor, manage, and implement effective strategies to improve them.

#6: Delayed Cash Flow for Inventory

On Amazon, third-party sellers usually receive revenue every two weeks. This can be challenging if your client is a newbie seller or a private label product brand because they need to generate cash for inventory maintenance. Without a reliable fund, there could be a delay in the production and fulfillment of the products.

Here's the good news: it's only temporary until your client's business becomes profitable. That said, the challenge is still inevitable. With a lack of knowledge and experience in the platform, newbies are often the targets of this policy. As the account manager, you must prevent this from happening.

#7: Ever-Changing Sales Tax Laws

This one is not just an Amazon-wide issue. Ecommerce sellers struggle with the constant change of laws on sales tax. In the US alone, there are more than 12,000 tax jurisdictions; moreover, the rates for every state or local area are different. This can be very confusing, and if your client can't comply, it may result in costly penalties.

On Amazon, filing and paying sales taxes are solely the third-party seller's responsibility. Although several states have required the platform to take an active part in this matter, little has changed until now. They only help calculate and facilitate sales tax; the rest is up to your client to stay compliant.

amazon fba business training - hidden fees spelled out on white blocks

#8: Hidden Fees

Most newbie sellers often find themselves gaining profit only to pay endless Amazon fees. This is because they focus more on venturing into the platform than thoroughly learning and calculating hidden or potential expenses. 

These fees include the various rates per platform or product, referral, FBA storage, FBA label service, coupon redemption, and Amazon seller account fees.

#9: Listing Limitations

Amazon will subject a new Seller Central account to product listing limitations. This frustrates a newbie who wants to go all out and increase brand awareness. Also, Amazon doesn't tell you about these restrictions; you will only notice them once you generate the listings.

For example, your client wants to expand their target market by selecting specific product categories. But before that can happen, they need approval from the platform. Inventory SKU limits are another example. All these restrictions make it harder for your client to grow their business significantly.

#10: Mixed-Up Stickerless FBA SKUs

When your clients send their products to FBA without SKU-level stickers, they are susceptible to mixing in with other sellers' products of the same SKU. This lowers the chances of sending the right goods to the buyers because Amazon picks the most convenient inventory regardless of the Amazon FBA seller.

Moreover, if your client wants to switch to a stickered account to solve this problem, they won't be able to. Amazon states that all SKUs sent to FBA under a stickerless account will remain that way. Otherwise, your client has to change the settings before their first FBA shipment (which is impossible by the time of realization) or add a duplicate stickered offer on the same listing.

The Solution: You and an Amazon Business Course

If you want to become someone who can assist new sellers on their Amazon journey, you must first understand that the issues they confront are also yours. Therefore, you need to think of solutions to the problems above and help them ease into the platform.

An Amazon FBA business training course will give you an in-depth look at seller account concerns and help you develop quick, effective, and long-term solutions. The following is a preview of the solutions in light of the issues we just outlined.

Act as the Main Point of Contact

One of the best things you can do to help your client is to act as the middleman between them and the management. With excellent communication skills, you can clarify issues, follow up on inquiries, and explain the platform's technicalities, so your client understands. Of course, it's not that simple but know that you'll play a vital role in improving these interactions.

Develop a Competitive Pricing Strategy

You can also help your newbie clients learn the ropes of competitive pricing and how to compete with well-established rivals. Instead of encouraging them to go black hat, like hitting rates below the price point, you can teach them how to revamp their SEO techniques, automate the pricing structure, or set prices within normal or higher ranges.

Monitor Account Health

Encourage your clients to keep track of their seller account health to comply with Amazon's policies. This involves the account status, order defects, product cancellation, late shipment, returns, and delivery tracking rates. You can help sellers see better results and avoid penalties by checking on these things regularly.

Make a Positive Difference in the Life of a Newbie Seller

As you can see, there are multiple challenges that newbie sellers often encounter on Amazon. What we've discussed are just the most common concerns; who knows what other potential issues await them? By taking an Amazon business course, you can help them overcome these challenges, avoid costly mistakes, and make their way to a successful business venture.

Digital Academy’s AAM Course

And as for you, an Amazon course certification will take you to many business opportunities. Are you familiar with prominent names like Kevin King, Jeff Bezos, or Tim Sanders? Maybe you're interested in books and courses like Blue Sky Amazon, Amazon Selling Machine, or Seller University. 

These resources contain secrets to some noteworthy Amazon success stories. That said, their success can never guarantee yours. So if you're looking for budget-friendly training that gives you everything you need to know to become a winning AM, Digital Academy is here!

Our AAM certification teaches you various ecommerce skills, such as Amazon SEO, Amazon FBA training, social media marketing, product research, Amazon Brand Registry, PPC advertising, effective communication, Amazon basics, and many more!

Enroll in the best Amazon FBA course today and take advantage of our 50% grand launching sale!

Recommended

Follow our social media accounts to get exclusive updates and offers!