For all the newbie sellers out there who believe that business has become easier than ever since the inception of e-commerce, think again! Although it is fairly accurate to state that online giants like Amazon and eBay have abridged the buyer and seller gap, by bringing them both on a single platform, everything comes with its set of challenges.
For instance, let’s talk about Amazon. Even though the huge customer base has made your future and current business ventures simpler, things (like signing-up) have become complicated at the same time. But you can turn challenges on Amazon into opportunities for sure. What a paradox right?
Here is a snapshot of problems you would face if you are planning to become an Amazon seller:
1. The strict selling policies
With the increasing number of sellers, counterfeit products and the rule-breakers (they ruin the fun for everyone!) it has become harder to just create an account and start selling, just like that.
Amazon has a list of restricted categories which need approval prior to selling and list requiring approval keeps growing every now and then. This list includes clothing, handbags and a handful of other categories.
2. The crazy competition
This is no secret that most products on Amazon aren’t seller’s original, but retail stuff bought from wholesalers. Since it isn’t exclusively made by the seller, the same product is purchased from distributors by multiple sellers, intensifying the competition and complicating your business venture more and more.
3. The long wait for your hard earned cash
You may be one of the lucky sellers who have a legacy account who can get their payments as early as 24 hours, but for the rest of us, unfortunately, there is a 14 day waiting period for receiving payment for the items you sell. This may affect your business if you have a small set up and limited revenue, and you use money from your payment to keep your inventory intact for further sales. Ah! What a pain.
There are ways to work around this payment system, but you have received approval from Amazon administration first, but the process is long and tedious.
4. Building a good feedback profile is a nuisance
It is nothing less than pain, to convince customers to leave feedback of their purchasing experience. This is most crucial if you are looking to expand, because of the better your feedback profile, the number of orders you will receive. Don’t worry! There is way out of everything. You can easily get a 5-star rating and feedback if you make sure your customer service is exceptional. Do good and be patient!
5. Selling restrictions and policies
If you are selling products from an established brand then you might get in trouble, because any manufacturer working with Amazon may request to ban listings of their product by any third-party seller, creating yet another restricted or approval requiring category. Think of this like copyright or patent issue, the manufacturer has decided to sell its goodies exclusively through its page and your sales are now plummeting!
Pro Tip: Every type of business has its opportunities and challenges. The key to choosing the right e-commerce partner for your business is to first identify the type of products/services you want to sell. Choose wisely!