Amazon

Steffi Greuel 6 Minutes

Amazon Problems: The Five Biggest Challenges for Sellers

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.

As an Amazon seller, do you spend a lot of time managing your orders, calculations, or inventory updates? Those days are over. To automate your processes and scale your business by integrating your Amazon Marketplace with your Microsoft Dynamics 365 ERP system.

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Table of Contents

1. Challenge: Editing and Updating Product Information

Sellers are often frustrated when they want to customize existing product information via the Seller Central platform but find that the information cannot be deleted or altered.  

One reason for this may be that the product information submitted does not match the style guide. For instance, sellers need to make sure that:

  • The title length does not exceed 200 bytes
  • Special characters are not included in the title, such as ! $ ? _ ~ { } # < > |
  • Subjective comments, such as “best seller” are not used

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

If you are having problems editing product information yourself, you can send a change request via the contact form under the “edit product detail page.” In some cases, Amazon even prefers this method.

2. Challenge: Overview of Inventory and Orders

 An important part of creating a successful business is the ability to monitor inventory levels and process orders in a timely manner. It is also significant to find the right level of inventory - neither too high nor too low. Unfortunately, this is often easier said than done.

If inventory is too low, it can be difficult to fulfil orders, and supply shortages can occur. Excess inventory, on the other hand, can tie up valuable financial resources and exceed available storage space.

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

3. Challenge: Creating a Reliable Sales Forecast

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

For 38% of brand owners surveyed, this results in problems maintaining enough stock to fulfill orders; 37% said they experience numerous out-of-stock events due to algorithm-driven pricing. Margin pressure, price erosion, and complex logistics were 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 : Returns Management

A 2021 study by the National Retail Federation projected that consumers are expected to return more than $816 billion worth of products in 2022. For online retailers, returns incur a huge expenditure of time AND a high financial burden. It is therefore important, and even urgent, for every Amazon seller to find an efficient solution for managing returns, especially since Amazon offers an extended return period of 30 days.

Despite some issues it can cause, Amazon’s return policy has advantages for retailers. A generous return policy increases customer satisfaction and the likelihood that they will buy from you again.

 

With the Amazon Marketplace Connector by ESYON, you can save time and personnel costs by automating the returns process: Returns are recorded as scrap until the product arrives in the warehouse; only then is the inventory updated. You will never inadvertently sell an item that is still making its way back to the warehouse.

The Amazon Marketplace Connector also allows you to import returns into your MS Dynamics, automate them, and easily manage taxes and billing.

With our returns management feature, you can take control of your returns and keep your business running smoothly. Sign up for a free demo and see how it can help your business grow!

5. Challenge : Hard and Soft Costs of Manual Data Transfer

Most companies use an ERP system (Enterprise Resource Planning) to plan and manage resources and processes. The problem: manually transferring information from Amazon Seller Central to your ERP is very time-consuming and error-prone, leading to increased overhead costs, poor resource allocation, and inaccurate data.

In a previous post, we calculated that it would take you 5-10 minutes per order! ESYON’s Amazon Marketplace Connector allows you to automate data transfers by seamlessly integrating your Amazon data into Microsoft Dynamics, saving you time, reducing your costs, and giving you the accurate information you need to run your business.

Conclusion: How to take your Amazon Business to the Next Level

As an Amazon seller, you will encounter various challenges daily, especially at the beginning. Nevertheless, Amazon’s online marketplace has outstanding potential - it is a matter of eliminating the problems and optimizing the processes to successfully exploit the opportunity offered by Amazon.

A first step is using the ERP system from Microsoft Dynamics and integrating it with your Amazon Marketplace using The Amazon Marketplace Connector by ESYON. You will see the immediate benefits of saving valuable time and resources with.

  • Automation of many processes, including order creation, invoice posting, and returns management
  • Synchronization with Seller Central for many tasks, including inventory updates, confirm dispatch, and shipping tracking info
  • The ability to view, manage, and control Financial Accounting from D365, including tracking Amazon payments, resolving open settlement issues, and generating reports

  giving you back time to focus on the essentials of your online business.

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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.

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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.