This is Why Your Business is Unprofitable: The Worst FBA Amazon FBA Mistakes Every Beginner Makes
It's the Zab Twins, and today, we're presenting a comprehensive guide on the top five mistakes you need to avoid to create a successful business. But before we proceed further, let's talk about why you should read this article:
The Zab duo are professional e-commerce coaches who aim to help your brand stand out from the rest. With specialized expertise in scaling profitable businesses, we've helped hundreds of entrepreneurs ensure success from the very start.
Since over 90% of all online start-ups fail within 120 days, you'll want to do everything you can to be among the 10% that carve long-term success. But how can you avoid failure and sustain business growth? Easy, you keep reading!
Here we'll share the worst mistakes we made while establishing our e-commerce business and how you can avoid them. In this YouTube video, you can discover common problems we came across and what we learned from them:
Top Five Most Expensive Mistakes All Beginners Make and How to Avoid Them
Launching your first product on Amazon is a thrilling experience. But it's also challenging. And that's why more than two-thirds of start-ups never make a profit. So, how can you keep your e-commerce business from failing?
It starts with the understanding that Amazon is not a get-rich-quick scheme; instead, it takes time and continuous effort to learn to be successful. The fact is that the road to profitability is not easy.
There will be bumps, but with the correct information, you can avoid common pitfalls and get your digital business on the path to success. To achieve this goal, we've created a list of the worst mistakes we made when we started selling on Amazon:
Mistake # 1: Rushing the Acquiring and Launching Process
The number one tip you need to ingrain in your brain is always calculating the risks and profits.
Now, we'll just pause the advice for a minute and talk about our experience. Like any amateur, the first mistake we made was we rushed with our first product. As a result, we had to relabel most of them.
But why does this matter? The fact is that our mistake led to huge shipping, labor, and opportunity costs. We had to pay hundreds of dollars to ship our product from China to the U.S., move it to Amazon's inventory, and wait an extra two weeks to relabel them. On the bright side, we learned that making data-driven decisions is essential.
Bonus tip: Do your due diligence on freight forwarding services, or you'll end up wasting a lot of $$$.
Another point worth noting is that when launching your first product, you must sell them at a competitive price. Social proof is the key to successful customer acquisition in today's oversaturated market. Unfortunately, as a beginner, you won't have testimonials, so you'll have to lower the cost of your product until you start gaining customers. After that, you can increase it to your ideal price.
Mistake # 2: Not Expanding Your Product Line
Rule 101 to succeed on Amazon, you need to keep expanding your product line. Why? You can diversify your income and ensure a consistent cash flow.
Think of it as an investment portfolio with stocks, bonds, and real estate. If the market is volatile and stocks go down, you can depend on real estate or bonds to bring consistent cash. In the same way, you need to keep launching high-demand products until you build your way to the top.
But to ensure you make money in your sleep, you must avoid our mistakes. What was that? We launched products without testing on the front end, which cost us a lot of time and money- money we could have saved easily. So, focus on split testing or pre-launch and make data-driven decisions if you want to bring in a positive ROI.
Keep in mind cash flow is king. Once your money stops flowing in, it'll inhibit your growth, and you won't be able to invest in core areas of your business, such as marketing or optimization. An excellent way of achieving this is using a robust tool designed to help you scale your Amazon FBA business like Helium 10. That way, you can find high-demand products to expand your product line quickly and effectively.
By the way, you can use code "THEZABTWINS6M20" to enjoy 20% off your first six months or "THEZABTWINS10" to access 10% off forever.
Mistake # 3: Failing to Reiterate a Product
While we're on the topic of products, let's talk about the importance of reiterating.
We had to discontinue several products because we failed to take customer feedback and iterate the product to match consumer needs. As a result, as our competitors continue to improve their products, we get pushed at the bottom barrier.
On the contrary, you can quickly grow a sustainable Amazon FBA business by taking customer feedback and fine-tuning your product.
Mistake # 4: Forgetting To Do Product Validation
Selling physical products requires in-depth product validation.
The hard truth is that you won't succeed if you launch a product without analyzing data and stats. You can't expect profits to roll in overnight if you choose to sell a me-too product.
Remember to conduct in-depth research on whether the product you want to start selling is new or old. Always make informed decisions and find ways to make your product stand out from the crowd.
Mistake # 5: Not Doing Research on Intellectual Property
This is the step many beginners skip and can easily cause your downfall.
Researching intellectual property, particularly patents, is critical whether the product is new or old. If you don't, chances are, like us, you too will lose unnecessary money and have to revamp your inventory
The Bottom Line
Before we conclude our guide, we'd like to remind you that your mindset is everything. A positive attitude can enable you to pick out the good from the worst situation, thus enabling you to turn your failures into powerful opportunities.
In business, things are never easy. So, don't let one mistake dictate your digital business journey; instead, use it as a powerful lesson to make better future decisions. If you’d like to learn more before you launch your Amazon FBA business, you can reach out to the Zab Twins here. Additionally, you can drive organic traffic to your product listings and expand your Amazon FBA customer base by partnering with the FBA studio today!