Operational Tips - What Minefields Should You Watch Out For When Doing Amazon? (Newbies Must Read)

There are many pitfalls on Amazon, and with the continuous influx of new sellers, the competition on Amazon is becoming more and more fierce, which has caused great troubles for new sellers. Today, I will share with you some of the pitfalls of Amazon.

1. Risk of infringement.

The protection of intellectual property rights on the Amazon platform is much stronger than that on Taobao in China, so if you are not sure whether certain products constitute infringement, you'd better not sell them, rather than cross the red line of infringement. Once suspected of infringement or found guilty of infringement, the product may be removed from the shelves at best, or the store may be closed at worst.

2. FBA inventory risk

As we all know, Amazon has two operating modes, namely FBM and FBA. Although each mode has its own advantages and disadvantages, Amazon is tilting more and more traffic and weight toward FBA products, which is "forcing" you to use FBA to ship.

There are many advantages to FBA shipping, including simple customer service, high product weight, and fast delivery. However, if you want to sell products through FBA, you must first ship the products to FBA warehouses in various countries so that customers can use Amazon FBA for delivery after placing an order.

Competition on the platform is so fierce now. If a product is unsalable or is removed from the shelves due to infringement or other reasons, then your FBA inventory will either be destroyed or re-labeled, which is a huge expense. So far, the financial losses caused by failed product promotion have shown an increasing trend.

3. Risk of being caught for fake orders

At present, many product categories on Amazon are close to saturation, so many sellers, in order to "overtake on the curve", carry out large-scale fake order and evaluation operations after the products are launched, which brings great risks to their stores.

Amazon has many punishment measures for sellers' violations, and fake orders are undoubtedly the most severe punishment. Once a seller is caught with suspected fake orders, it has basically become standard procedure to first warn and then close the store.

4. Risk of being spoofed by competitors

Even if you operate your product honestly and dare not touch the red line of the platform, if your product sells well, it may arouse the anger of your peers, and many bad sellers will try to attack your product in a similar way.

When your product is successfully removed from the shelves, his product can be promoted to a higher level. Nowadays, such spoofs are everywhere, which is really infuriating.

5. Risk of being copied

Follow-selling is one of the characteristics of the Amazon platform. Many of the veteran sellers who have been in the industry for many years have made their fortunes by following-selling.

However, Amazon has now entered the era of branding and high-quality products, and copycat sales are no longer a good idea.

However, in order to make money quickly, many sellers still want to make profits in this way. They hide during the day and come out at night, waiting for opportunities to follow the sales of those products that have no brand registration. Many people even use software to follow the sales, and follow the sales of hundreds of thousands of products overnight.

The sellers whose products are copied by others are helpless and can only watch the copycats snatch their traffic and shopping carts.