As Amazon grows, the myths about it grow too. The following are seven common myths that will help Amazon store owners better understand the environment in which they act and how they can avoid unnecessary and costly mistakes.
“I Can become a millionaire overnight”
Although there are many success stories for some Amazon store owners, no one can expect to get rich overnight. This requires hard work, creativity, adherence to the goal and extensive experience. The store owner must have a long-term plan, acquire potential products, build a quality supply chain, invest in the store design, correctly use the marketing and sales tools, and provide first-class service. This is the correct formula for significant and long-term economic success – shortcuts will lead you to a dead end.
“Setting up a shop on Amazon, figuring out how to market and sell are to complex and maybe even impossible”
Of course, there is a need for knowledge and expertise to create a successful store correctly and accurately according to Amazons requirements. However, we are here to help! Around Amazon and the ecommerce industry there is a large community of professional consultants who will accompany your business and provide you with effective advice without breaking the bank. In addition, there is plenty of free content available and can provide the store owner with answers to specific questions that they are facing. (Including forums, Facebook groups, Youtube tutorials and more).
“Competition on Amazon is too acute to be successful”
Indeed, competition on Amazon is increasingly high, as many Brand owners and product developers are extending their activity in ecommerce. However, the number of consumers is also increasing at an accelerated rate. According to data published by Amazon’s founder Jeff Bezos, Amazon Prime subscribers have already reached 100 million people while millions more are still purchasing products without this having Amazon Prime.
“To sell Amazon I need to purchase products from China”
China has become a huge target of significant product sourcing among Amazon shops, due to competitive pricing and manufacturers. However, you can acquire potential products across all categories from other sources that are as good in other continents. Despite the success of Chinese products at Amazon, a store owner should consider the use of a Chinese manufacturer based on professional parameters such as: Quality products, warranty, price, and the amount of flexibility for wanted changes, the quality of communication with the supplier, and more.
“You have to invent a product to succeed at Amazon.”
Although Amazon is a great platform for unique products, the store owner can differentiate itself by developing a private label through its design with a manufacturer that will combine exclusive unique features, different enhancements, and a richer customer experience. Any product can be improved even though it is not a unique or patented product.
“Holiday sales is where I make my money”
Many people attribute too much importance to seasonal sales (such as Black Friday). While there is a potential for rapid profit, a business strategy that is focused on seasonal sales is not a long-term business. Furthermore, there is an operational risk. If your shipments arrive late to the amazon fulfillment center (sometimes only a day late) Seasonal sales can be incredibly reduced. This requires early estimates of shipments and hoping you won’t get stuck with inventory after the season is over
“Amazon Vs eBay”
Brand owners can be successful both on Amazon and on eBay, we believe Amazon offers a higher value and more tools for your success and customer satisfaction. eBay offers sellers affordable prices in certain categories. However, Amazon Prime service as well as the possibility to stock your products using the Fulfillment By Amazon services (FBA).
Myths are the definition of popular opinions that are difficult to uproot and have great influence among believers. There is some danger of making the wrong decisions that will lead your business to a direction that may cause losses. Getting advice or using experienced professional services may separate the myth and reality and prevent unnecessary mistakes.