FBA Vets - What's the #1 Lesson That Transformed Your Amazon Business?
We constantly have new Amazon FBA sellers joining us here on the Amazon Seller Forums looking to learn from those that have come before them. To that end, we'd love to hear directly from you - our veteran FBA sellers - about the single most important lesson you've learned through your years of experience.
What piece of advice or insight has been absolutely invaluable in helping you navigate the world of FBA selling? What's the one thing you wish you had known when you were first starting out?
Whether it's a tip about product sourcing, inventory management, customer service, or anything else, new FBA sellers have a lot they can from the combined veteran FBA experience we have here on the forums.
Sound off in the comments below!
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Bryce_Amazon
I only dabbled in FBA for a few products, several years ago. After seeing all the people who have had not only their funds held, but their inventory "appropriated" by Amazon, I decided that FBA was not for me.
Post like these seem to back that decision that I made years ago...
Amazon stole my inventory worth 190k.
200K INVENTORY STOLEN BY AMAZON
mods help please!! missing FBA shipment.
Amazon refused to reimburse for the damaged item which was caused by Amazon Warehouse.
Now, I am sure that there are hundreds of thousand of successful FBA sellers, but small guys (like me ~ $350K revenue) cannot afford to take hit after hit after hit. I'm sure that it averages out enough after a couple million dollars in revenue. Sellers at that level can cover these losses.
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Bryce_Amazon
To never trust Amazon to follow their policies and fix problems and issues for you. All Amazon cares about is money, not their selling "partners".
If I had known that when I started out, it would have saved a lot of grief.
The best advice is to look out for yourself on this platform, since Amazon doesn't support their sellers.
Seller_keSnEDesLFVwv
The number one lesson the transformed my business? Hmm...
The first time that I sent books to FBA, they claimed that only one book was in the box. From that I learned from that you will lose items in FBA. I also learned that Amazon employees will lie to you rather than help you fix the problem.
So the lesson that transformed my business: Don't do FBA.
In the ensuing years, I have widened this to Don't trust Amazon. It is still the same idea, just more inclusive.
Seller_4zBzdtgCyS9EI
Bryce_Amazon
Make sure you don't send in a single item you might need to get back, because when you do, it will take a year to get the last one, be shipped in 255 packages at high fees and will come back trashed.
Seller_8uc0P1EJEs5cJ
1. Build your inventory slowly to match demand. New items sell slower, and then as they sell, build your inventory. Don't start with a new item and send them 1,000 units as they might not sell as well as you hope.
2. Patience. OMG, lots of it. Your FBA shipment doesn't show 'Received' a week later to a warehouse 5 miles away? Wait. Your FBA shipment doesn't say "Received in Full" after a month? Wait. But monitor and after the 60 days or 90 days they have to receive everything, file a case for the missing stuff. Patience is key.
Amazon FBA is a long game.
Seller_9yQUzZAP34cYw
The most important lesson I learned is that Amazon is not your friend, not your partner, and could not care less about any seller. You must be hyper vigilant about every process. You must daily review inbound reports to find out how much Amazon tried to steal. It is better to sell FBM because you can charge a restocking fee when Amazon's customers destroy your products and try to return them for a full refund. It is Amazon's house and thus Amazon's rules. They can do whatever they want, whenever they want and you have no recourse.
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Seller_8uc0P1EJEs5cJ
+1
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+1
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+1
Also. Ad efficiency and listing visability are built on SEO. This apppies to both FBA and FBM but with the additional expense of FBA it is even more crucial.
Your first task is to create a competitive listing, BEFORE sending in inventory.
Seller_x8OpKNxSF1ZqY
Be cautious and don't overcommit to FBA. Amazon fulfillment centers are far from perfect; personnel are human and as prone to human folly and incompetence as much as anyone else. Product will be lost/stolen - account for it in your business plan as shrinkage. There's an entire cottage industry build around fixing Amazon's mistakes - think about how bad it has to be for one company's mistakes to spawn an entire other industry.
Seller_1sZE5n9hympJR
Piece of advice/insight: Do not use FBA.
One thing we wish we would have known: There is no support from Amazon when Amazon makes an error.
- We had to pull our inventory because Amazon used incorrect weights (1 lb vs item being 1 oz). Amazon offered to send us a photo and when replied confirming we would like to see it, they advised us to stop contacting them. Support did not understand there was a difference between "pound" and "ounce" , which effected our fees. Everything on our side was accurate.
- Amazon continuously sent customers empty boxes; meaning- it was an Amazon box with no actual product inside. We got flooded with customer complaints and passed them off to Amazon Customer Service only to then receive complaints that Customer Service was unhelpful.
A tip about customer service is that you can offer better overall shipping service and better customer service by not selecting Amazon as your vendor to handle that.
Also keep in mind Amazon's system issues. If Amazon determines something is a "violation", it takes months for them to resolve. This means your inventory is on hold and you're paying fees for that. Amazon has always overturned for us, but it's a huge hassle and not worth the expense for them to destroy or store inventory because of their errors and lack of support.
Seller_okzTokjyyYTIG
READ SELLER UNIVERSITY AND DO NOT RELY ON YOUTUBE VIDEOS OR THE NEGATIVE COMMENTS ON THESE FORUMS
Constantly test new products
Do not be afraid to liquidate a poor performing item
If going the brand name wholesale route:
-Use reputable distributors with verifiable supply chains
-Attend trade shows (such as ASD)
-Develop a rapport with your agents
-Knowing whats in stock at the distributor is great, but knowing what's on the upcoming order and the timeline of being refillable is even better
If going the private label route:
-Spend the little extra money to create a very visibly appealing listing
-Constantly optimize your advertising at least every 2-4 weeks
-Avoid automatic targeting
-Start the USPTO process now (took me 2.5 years from start to finish)
