With so much competition on Amazon, it is difficult to keep your retail prices high. Your product is sitting right next to a product similar to yours and the prices are in plain sight. Amazon also takes anywhere around 30% of your total sale. It starts with 15% of your retail price and then includes picking/packing fees and shipping fees. At the end of the fees, you may have just given Amazon 30% of your total sale. This is the price to pay for Amazon being the major reason you were even able to make the sale in the first place. A good way to avoid excessive fees and keep ok margins are to sell more than 1 of your product in a pack. This may not work for all types of products.
Amazon has some pretty strict rules for Amazon merchants. If these rules are broken you could find your product taken down without an explanation (this actually happened to us by mistake, with no apology from Amazon). You could even have your account closed, which will be a really difficult case to get it reopened. Make sure you read through Amazon’s terms of service. That may seem like a tedious chore, but Amazon tries to make their rules clear. If you don’t understand something or have some doubt about what you’re doing then definitely call customer service. It will be documented that you contacted concerning this issue.
Bad reviews can really hurt your brand. There are people out there just like to write bad reviews, but there are more good people out there that leave honest reviews. I actually see reviews on Amazon as a positive one. They can really show you what you may need to change about your product.
You are responsible for responding to customer feedback. Amazon actually rates your account performance based on how fast, or slow, you respond to customers. If your seller performance ranking gets really low you may be in danger of having your account closed.
Wait, this is a good thing! You will be making so many sales, so fast, that you may forget to order more inventory and send it off to FBA.
