Amazon problems: The 5 biggest challenges for sellers (2023)

Selling on Amazon is considered easy and full of opportunities. The platform has a number of support features for Amazon sellers, offers a unique logistics network, and has a huge global reach. Nevertheless, sellers are naturally also confronted with one or the other challenge. These were documented in the Amazon Vendor Survey Report 2022 by Pattern and make it clear that retailers have the greatest problems with Amazon in the area of administration: inventory, orders, customer data, returns & Co.

In this article, we’ll describe some of the most common difficulties that arise when selling on Amazon and show you how to eliminate them in the future.

Table of content:

1. challenge: changing product information:

A very common frustration is that sellers want to customize existing product information and then do so via the Seller Central backend, but the information cannot be deleted or customized. One reason for this may be that the product information submitted does not match the style guide. For instance, make sure that:

• • the title length does not exceed 200 bytes,
  • you do not include ornamental characters in the title, such as ! * $ ? _ ~ { } # < > | *
  • you do not use subjective comments, such as “best seller”

Other specifications for the product description are largely dependent on the product category (e.g. Sports & Leisure).

Another way to change your product information is to send a change request via contact form under “Edit product detail page”. In some cases, Amazon even prefers this method.

2. challenge: overview of stocks and orders

An important part of a successful business is also monitoring inventory levels and processing orders in a timely manner. It is necessary to find a balance between low and high inventory. Unfortunately, this is often easier said than done.

If inventory is too low, it can be difficult to find the goods ordered and supply shortages can occur. Excess inventory, on the other hand, can waste valuable financial resources and cause storage problems.

Failure to strike a balance here can lead to unhappy customers and lost sales. However, by connecting with your Microsoft Dynamics ERP system, you can ensure that you always have the right amount of products in stock without wasting too much money on unnecessary inventory.

3. challenge: providing a well-founded sales forecast

Amazon sellers also often face difficulties in forecasting sales. This is according to the Amazon Vendor Survey Report 2022 by e-commerce accelerator Pattern.

For 38% of brand owners surveyed, this results in not being able to maintain enough inventory, and 37% said they experience numerous out-of-stock events due to algorithm-driven pricing. Margin pressure or price erosion and complex logistics were already cited as major challenges in the 2021 study. Nevertheless, Amazon is still perceived by brands as a growth marketplace. More than a third are planning to expand internationally via Amazon.

4. challenge: management of returns

A 2021 study by the National Retail Federation and Appriss Retail projected that consumers are expected to return more than $816 billion worth of products in 2022. For online retailers, returns naturally mean an immense expenditure of time on the one hand, but also a high financial burden on the other. It is therefore important for every Amazon seller to address the issue of returns management sooner rather than later. Not least due to the fact that Amazon offers an extended return period of 30 days.

However, this does not only bring downsides for you as a retailer. If your customers have the option of returning products, this increases customer satisfaction and the likelihood that they will buy from you again next time.

With the Amazon Connector by ESYON you can save time and personnel costs by automating the returns process: Returns are automatically recorded as scrap and inventory is not corrected until the product arrives in the warehouse.

The Amazon Marketplace Connector also allows you to import returns, automate them, and easily manage taxes and billing. In addition, you have the option to register return items to keep track of returned items and ensure accuracy.

With our returns management feature, you can take control of your returns and keep your business running smoothly. Try it today and see the difference it can make in your business.

Conclusion: How to take your Amazon business to the next level

As an Amazon seller, you have to deal with various challenges on a daily basis, especially at the beginning. Nevertheless, the online marketplace – as already mentioned at the beginning – is one of the sales channels with very great potential. So it is now a matter of eliminating the problems and optimizing processes in order to successfully exploit this potential.

You can take the right step in this direction by using the ERP system from Microsoft Dynamics and connecting it to your Amazon marketplace using the Amazon Marketplace Connector by ESYON. With …

• • automated and easy order import,
  • a centralized solution for product and customer data management,
  • automatic invoice posting and
  • automated returns management

… you can save valuable time and resources and focus on the essentials of your online business.

Frequently asked questions about Amazon problems

What are the biggest Amazon problems for sellers?

If you want to sell on Amazon, you will most likely be confronted with one or the other Amazon problem, such as difficulties with sales forecasting, inventory management or maintaining customer data. How you can successfully solve these and other problems when selling on Amazon, we tell you in the article.

What are the Amazon sales fees?

The amount of Amazon sales fees depends on the product category. However, most of the time the fees are between 8% and 15%.

How do I keep track of my orders as an Amazon seller?

To manage products, inventory, orders, and returns when selling on Amazon, you should definitely turn to an ERP system. We recommend Microsoft Dynamics 365 and we even have already developed an interface between the ERP and your Amazon Marketplaces: The Amazon Marketplace Connector from ESYON. This way, you always keep an overview and can take care of more important areas in your online business.

Where can I manage my product and customer data when selling on Amazon?

With ESYON’s Amazon Marketplace Connector, you have a centralized view of all data from your Amazon Marketplaces directly in your Microsoft Dynamics 365, eliminating additional effort, keeping track of your inventory, shortening your process chains, and freeing up tied-up resources.