At Feedvisor’s Orlando Summit a few weeks ago, Victor Roseman spoke about using data to obtain a competitive advantage in business. When it comes to Amazon sellers, data can be a tool for greater success.
Amazon Sellers can use Data to Avoid Account Suspensions
Sellers can use data easily available to them to identify problematic products before they get suspended. For example, which of your ASINs are resulting in your highest returns? Which ASINs are receiving the lowest feedback?
Get Rid of Poor Performing or Highly Problematic ASINs to Avoid Account Suspensions
Amazon employs “purposeful Darwinism.” This means that no matter how great their staff is, Amazon culls the worst out. They consistently drop the lowest performers. On the one hand, there is little justification for dismissing a good employee…even if he or she is not the best. But, when it comes to Amazon sellers and products, Sellers might be wise to mimic Amazon’s success.
Each month Sellers can identify their products or ASINs that are causing the greatest returns, negative feedback or other issues. Even if those products are the most or nearly the most profitable, if they are putting your account at risk, consider dropping them.
Most sellers have heard at one Amazon event or another, that you should not be married to a product. The goal of your account is to sell goods and make money, not to sell a particular product. Whether you love the product or not, if any one or several products are putting your entire business at risk, consider dropping it…or them. Keep your eye on the long game. Keep your account healthy even if it means lowering short term profits.
Watch for Lines of Products or Brands Being Targeted for Account Suspension
There are many Sellers’ Forums, courses, trade shows and events. In March, there is the iconic The Sellers Conference, formerly SCOE (Sellers Conference Online Entrepreneurs), Global Sources in Hong Kong in April, Midwest eCom this summer in Minneapolis and many others. Through reading forums and attending courses, you will obtain information on which sellers are being targeted, and why.
For example, from the moment the Super Bowl teams were identified, all sellers of NFL products were at tremendous risk of account suspension. If you were reading the forum … or this website, you couldn’t miss it. There was a bright red target on the backs of Amazon sellers of anything with N-F-L in their product names or descriptions.
This data and the trends should not be ignored. If you read about sellers with similar product lines being suspended – get out of those products before your suspension email arrives. Use the data.
Inventory Turnover Data to Avoid Amazon Suspensions
Inventory data is another great indicator of what Amazon sellers should continue to invest in and what products to terminate.
Inventory data is simply tracking how long it takes for you to move your products. Is your inventory sitting at FBA or your warehouse or is it moving to consumers quickly?
In addition to using inventory turnover to identify products that are simply costing you money and lost opportunities because your capital is tied up, old inventory leads to suspensions.
Old Inventory, Used Sold as New, and Inauthentic Complaints
Old inventory leads to suspensions. Old inventory leads to suspensions because it places the Seller at an increased of delivering products in outdated packaging. The consumer receives an authentic product but it looks different than what is in brick and mortar stores.
For example, Health & Beauty products are notorious for updating their packaging frequently. This means that the older your products are, the more likely that the packaging could change before the consumer receives your goods.
When a consumer receives a product that has 2016 packaging instead of the updated 2017 packaging, they complain. When consumers complain, Amazon suspends sellers. Use the data of slow moving inventory to avoid Amazon suspension: stop selling ASINs that move slowly.
Amazon sellers have an enormous amount of data available to them via the platform. Use it to both become more profitable and also to avoid suspensions. By watching for targeted products and monitoring your metrics on a regular basis, you can take back some of the power and limit the chances of your account being suspended.