Amazon Problems: The Biggest Challenges for Sellers (2023)

Selling on Amazon is considered easy and promising. The platform provides some supportive features for Amazon sellers, offers a unique logistics network, and has a huge global reach. However, sellers naturally also face some challenges. These challenges were identified in the Amazon Vendor Survey Report 2022 by Pattern and make it clear that sellers have the biggest issues with Amazon in the area of management: inventory, orders, customer data, returns & more.

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

As an Amazon seller, do you spend a lot of time managing your orders, calculations, or inventory updates? That ends now. To integrate your Amazon marketplace directly into your Microsoft Dynamics 365 ERP system, automate your processes, and scale your business, use our Amazon Marketplace Connector.

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1. Challenge: Changing Product Information

A very common annoyance is that sellers want to modify existing product information through the Seller Central backend, but the information cannot be deleted or adjusted. One reason for this may be that the submitted product information does not comply with the style guide. For example, make sure that:

  • The title length does not exceed 200 bytes
  • You do not include special characters in the title, such as ! $ ? _ ~ {} # < > |
  • You do not use subjective comments like "Bestseller"

Further guidelines for product descriptions largely depend on the product category (e.g., Sports & Leisure). Another way to change your product information is to submit a change request through the "Edit Product Detail Page" contact form. Sometimes Amazon even prefers this method.

2. Challenge: Providing an Accurate Sales

Forecast Amazon sellers often struggle with accurate sales forecasts. This is evident from the Amazon Vendor Survey Report 2022 by E-Commerce Accelerator Pattern.

For 38% of the surveyed brand manufacturers, this leads to insufficient inventory, and 37% reported experiencing numerous out-of-stock events due to algorithm-driven pricing. Margin pressure or price erosion and complex logistics were already mentioned as major challenges in the 2021 study. Nevertheless, Amazon is still perceived by brands as a growth marketplace. Over a third of sellers plan to expand internationally through Amazon.

3. Challenge: Handling Returns

According to a study by the University of Bamberg in 2023, approximately 286 million products are returned annually in Germany alone. For online retailers, returns mean not only an immense amount of time but also a significant financial burden. Therefore, it is essential for every Amazon seller to deal with return management sooner rather than later. This is especially true as Amazon offers an extended return period of 30 days.

However, returns are not without their advantages for you as a seller. When your customers have the option to return products, it increases customer satisfaction and the likelihood of them shopping with you again. With ESYON's Amazon Connector, you can save time and personnel costs by automating the returns process. Returns are automatically accounted for as scrap, and inventory is only adjusted when the goods arrive at the warehouse.

The Amazon Marketplace Connector also allows you to import and automate returns, easily manage taxes and settlements, and register return items for tracking and accuracy.

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

4. Manual Effort in Transferring Data to Your ERP

To plan and manage resources and processes, most companies use Enterprise Resource Planning (ERP) systems. The problem: Manually transferring your data from Amazon Seller Central to the ERP is a huge time drain.

In a previous post, we calculated that you would need 5-10 minutes for processing each individual order! Moreover, manual transfer is extremely error-prone. With the help of our Amazon Marketplace Connector, you can seamlessly integrate your Amazon business into Microsoft Dynamics and eliminate manual efforts, resulting in time and cost savings.

Conclusion

Take Your Amazon Business to the Next Level

As an Amazon seller, you will face various challenges, especially at the beginning. However, the online marketplace - as mentioned at the beginning - is one of the distribution channels with tremendous potential. So now it's time to address the problems and optimize processes to successfully tap into this potential. One step in the right direction is to use Microsoft Dynamics ERP system and connect it to your Amazon marketplace with the help of ESYON's Amazon Marketplace Connector. By...

  •  Automating and simplifying order imports
  • Centralizing product management
  • Automatically booking orders and invoices
  • Automating return management

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

You want to convince yourself of our Amazon Marketplace Connector?

We would be happy to present the tool to you in a free demo appointment and clarify any questions you may have.

Contact us

Frequently Asked Questions about Amazon Problems

What are the biggest Amazon problems for sellers?

When selling on Amazon, you are likely to face various Amazon problems, such as difficulties with sales forecasting, inventory management, or customer data maintenance. In this article, we reveal how you can successfully solve these and other problems when selling on Amazon.

What are the Amazon selling fees?

The Amazon selling fees vary depending on the product category. In most cases, the fees range between 8% and 15%.

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

To manage products, inventory, orders, and returns while selling on Amazon, you should definitely use an ERP system. We recommend Microsoft Dynamics 365 and have already developed an interface between the ERP and your Amazon marketplaces: the Amazon Marketplace Connector by ESYON. This way, you have a centralized view of all data from your Amazon marketplaces directly in your Microsoft Dynamics 365. This saves you additional effort, keeps you on top of your inventory, streamlines your process chains, and frees up bound resources.

 

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