Are you ready to learn from my mistakes? In this post, I share with you 5 mistakes I made in my Amazon FBA business.
For those who don’t know, I have several online businesses. One of my businesses is Amazon FBA. I started this business in 2018, and I had a very wrong start. I didn’t make any money, but I lost $10,000. Now, I’m about to start this business all over again and learn from my mistakes.
I want to share my mistakes with you because I think these are really valuable lessons. I want you to learn from it so that you can have a successful business right at the beginning.
Do you want to learn how to build a profitable Amazon FBA physical products business? ThenCLICK HERE to get free Amazon FBA training!
1. I chose the wrong Amazon FBA product (lost $4,000)
Firstly, the most important thing in this business is to choose the right product. It should be more important for you to help people with your product than making money from it. I tell you why.
If you give value to your customers and help them solve their problem with your product, they will be thankful for it. As a result, they will leave positive reviews, they will offer your product for their friends and family, and maybe they will buy from you again or buy one of your other products. This worth so much more than sell someone once.
I was in a bad financial situation, and I needed money. So I thought I invest all of my money into this business and I will generate a lot more. I only focused on the money. So I choose a product that has a really good profit margin and a relatively high selling price. This was a self-inflating sleeping pad.
The problem was that I didn’t know anything about this product. I didn’t get interested in it. I didn’t even go camping, so this was a totally unfamiliar field for me. And this leads us to another critical issue.
Having an interest in your product helps a lot. If you’re passionate about it, you can market and sell it much easier. In other words, be sure to chose a product that you’re at least interested in.
So I had this product that has a good profit margin and a high selling price, but I didn’t interested in it, and I didn’t believe that I can give value to my customers. But as I said, I only focused on the money.
2. I chose the wrong supplier
So I selected my product. Then, I started to search for a supplier. I had a mistake here as well.
If you know your product and it’s something that you use, you can choose the right supplier much easier. Therefore, you can evaluate the samples much more effectively.
However, I didn’t know anything about this product. I checked the samples, but I didn’t really know what to check. So, I chose the cheapest product to save money. That was a huge huge mistake. I tell you why in a minute.
3. I didn’t send the customs documentation to my freight forwarder for a review (lost $500)
The next mistake I made was when I placed my order. I asked my supplier to fill out the customs documentation and send the shipment immediately.
It was a mistake because the description of your commodity must be clear, exact, and concise.
Toys are almost always pulled for safety exam. My products showed up with customs as a blow-up Lilo (like the Disney character). You want to make sure your freight forwarder review what your supplier sends for customs documentation before they ship.
If you ever consider toys, you want to make sure that the supplier is known for producing toys and that they can provide the correct set of consumer safety inspection documents.
At the safety exam, they asked me documents that didn’t exist, because it was not a toy. That’s why I had to pay more than $500 for the storage and the exam. The exam took 2 weeks because I didn’t have the documents.
I highly recommend having a freight forwarder because you can have serious issues like this and it’s impossible to solve without a freight forwarder. I don’t know what would I did without them.
4. High competition (lost $5,500)
When my product arrived at Amazon, I realized that nobody wants to buy my products. There was high competition, and I was a new seller with no reviews and no brand recognition. I did a lot of promotion, but I almost had no customers.
I chose a product that’s heavy and relatively big, and I ordered 500 units. So I had to pay a lot of storage fee for Amazon for months, and my product wasn’t sold, so it was a lot of money every single month. I lost more than $5,500.
5. I didn’t remove my items in time
Finally, I realized that this product doesn’t make money at all and that I had to pay a lot of money for Amazon because of the storage fee. That was when I would have to do a remove order and get rid of the whole thing. However, I hoped that it starts to sell. But it didn’t.
As I said previously, I chose the cheapest product and the wrong supplier. Therefore, I had a lot of returns on Amazon. As a result, Amazon suspended my account.
My new Amazon FBA business
Now, I’m about to start this business all over again. I chose a product that I’m passionate about I use it regularly, and I know that I can give value to people with this product. I’m in the phase of evaluating my samples because I want to choose the best possible product to really give value to my customers.
Once I’m ready, I’ll do a follow-up and share my new experience with you.
By the way if you’d like to know, I followed the Amazing Selling Machine online course that teaches step-by-step how to build up an Amazon FBA business.
Until then, if you want to learn how to build a profitable online business selling on Amazon, I would love to help by providing you with access to the FREE Amazon FBA training videos.
Do you want to learn how to build a profitable Amazon FBA physical product business? Then CLICK HERE to get FREE Amazon FBA Training!