For emerging brands, building a multi-channel strategy alongside Amazon can further bolster success. It offers vast reach, powerful tools and a user-friendly experience. But launching on Amazon is both a strategic opportunity and a formidable challenge for brands.
While the Amazon marketplace offers immense reach, it’s also highly competitive and complex. Many brands underestimate the intricacies involved, leading to avoidable mistakes that hamper their long-term success.
SKU mentor Ryan Flynn, founder and CEO of ExpertCPG, is passionate about helping emerging brands tell their story on Amazon. He explores the five most common mistakes brands make when launching on Amazon and provides practical insights on how to avoid these pitfalls, optimize your launch, and thrive in the competitive marketplace.
Mistake 1: Not understanding Amazon’s Fee Structure and Margins
Amazon’s fee structure is more complex than many brands anticipate, and failure to grasp its full impact can erode profit margins quickly.
How to Prevent This Mistake
● Thorough Research: Before launching, thoroughly research Amazon’s fee structure for
your specific product category. Familiarize yourself with Referral Fees and Fulfillment
Fees.
● Utilize the Revenue Calculator: Make full use of Amazon’s Revenue Calculator in
Seller Central to visualize fee breakdowns and explore different product dimensions and
price points to optimize margins.
● Monitor Margins Continuously: Invest in analytical tools like Better Seller Data to keep
track of margins post-launch, focusing on real-time data rather than relying solely on
Amazon’s disbursement reports.
Key Takeaways
Understanding the complete fee structure and monitoring margins can prevent the common pitfall of misjudging profitability.
Mistake 2: Incorrectly Setting Up Listings
Incorrectly setting up listings can cripple your Amazon success, from incorrect product identifiers to irreversible listing errors.
How to Prevent This Mistake:
● Register UPCs in Advance: Ensure that all your products have GS1-compliant
barcodes. Register each variation accurately to avoid future complications.
● Double-Check Key Elements: Before submitting, meticulously check all listing
elements, including brand names and categories, to ensure accuracy.
● Consult Amazon Guidelines: Familiarize yourself with Amazon’s listing guidelines to
avoid errors that can lead to the creation of new listings and loss of sales data.
Key Takeaways
Getting your listings right the first time is crucial for maintaining sales momentum and visibility
on Amazon.
Mistake 3: Manipulating Reviews
Many brands are tempted to manipulate reviews early in their Amazon journey, but this can lead
to severe penalties.
How to Prevent This Mistake:
● Focus on Authentic Engagement: Build authentic reviews through Amazon-approved
programs like Amazon Vine, and encourage satisfied customers to leave feedback.
● Use Follow-Up Messaging: Leverage Amazon’s buyer-side messaging to thank
customers and politely encourage them to share their experiences with your product.
Key Takeaways
Avoiding shortcuts and focusing on generating authentic reviews can prevent the catastrophic
consequences of account suspension.
Mistake 4: Expecting Immediate Success
Many brands mistakenly assume that launching on Amazon will yield immediate traction.
How to Prevent This Mistake:
● Set Realistic Expectations: Acknowledge that building a successful Amazon presence
takes time. Plan for a gradual growth trajectory.
● Invest in Advertising: Allocate a budget of at least $1,500 to $2,000 per month for
advertising in the early stages. Treat this as an investment in customer acquisition and
data collection.
● Monitor Diverse KPIs: Measure success using key performance indicators beyond just
sales, such as review growth and break-even analysis.
Key Takeaways
Recognizing that success on Amazon is a gradual process allows brands to stay focused on
long-term goals rather than seeking instant gratification.
Mistake 5: Neglecting Brand Aesthetics on Amazon
Brand consistency across channels is essential, but many brands fail to maintain their identity on Amazon.
How to Prevent This Mistake:
● Maintain Visual Consistency: Ensure that product images and branding on Amazon
reflect your overall brand identity. Invest time in creating Amazon-specific assets that
align with your existing branding.
● Optimize for Mobile Users: Since a significant portion of purchases occurs on mobile
devices, ensure your listings are mobile-optimized with clear images and concise text.
● Engage in A/B Testing: Use Amazon’s A/B testing features to experiment with different
content formats and improve conversions.
Key Takeaways
Consistent and visually appealing branding can enhance trust and recognition, increasing the
likelihood of success on the platform.
Launching on Amazon can be a transformative opportunity for brands, but success requires careful planning and execution. By understanding and avoiding these five common mistakes—misjudging fees, incorrectly setting up listings, manipulating reviews, expecting instant success, and neglecting brand aesthetics—brands can lay a strong foundation for long-term success. Armed with this knowledge, you’ll be better equipped to navigate the complexities of Amazon and build a sustainable presence on the platform.
Need expert guidance? ExpertCPG specializes in helping brands master the art of launching and scaling on Amazon. From optimizing listings and navigating fees to building authentic reviews and brand aesthetics, the ExpertCPG team of experts provides the tools, insights, and support to maximize your Amazon success.