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How We Help New Sellers Avoid These 5.5 Newbie Traps
There are Newbie traps when starting your eCommerce store has been made simple (not easy) with the help of online platforms like Amazon, Shopify, eBay, Etc. Amazon is the king of eCommerce. In fact, 1 out of 3 Americans are Amazon Prime Members.
Amazon’s dominance has made it a top destination for online sellers. You have the option to dropship items from name brands and sell your own products via Fulfillment by Amazon (FBA), or Fulfillment by Merchant (FBM).
According to JungleScout an Amazon Data Tracking Service 76% of Amazon Sellers are profitable. 46% of sellers said their profits increased from 2020 to 2021. The average full-time (40+ hours) seller earns $42,000 per year (our average client earns six figures per year).
As I mentioned it is simple but not easy. There is a difference. Do you have the time to grow a successful store? Can you survive the learning curve? Have you figured out what products to sell? Will you dropship, use FBA, or FBM? Are you willing to learn how to update your catalog, keep up with price changes, and stop competitors from stealing your listings?
Here are 5.5 Newbie Traps that we can help you avoid:
1. Lack of Capital
There are start-up costs. From forming your business to getting a reseller’s license. There are monthly fees, shipping fees, and taxes to pay.
Can you generate enough cash flow to maintain your inventory? Amazon pays its sellers every two weeks and most sellers make the mistake of relying on revenue in the beginning.
A lack of capital can cause you to pause your store. Or worse not fulfilling your orders. A huge mistake with Amazon will get your account suspended.
This is why we always ask that you have working capital. Too many new sellers rely on sales from their listings instead of having the working capital. Pausing your store because you ran out of funds can lead to failure.
Dropshipping can alleviate some of these problems in the beginning. It takes time to build positive cash flow and get you into profitability.
