Amazon Online Arbitrage is a great business model and can be very profitable. But it does come with its downsides. One of the biggest problems for Amazon sellers is returns.
Q4 is the most hectic time of the year for online retailers, but it’s even more so for those who sell on Amazon FBA. You have to deal with peak-season sales, which means more orders and returns, as well as seasonal losses. But that doesn't mean you should give up and stop selling your products in Q4 - there are ways to make sure that you don't take too much of a loss from these fluctuations.
Amazon FBA returns are a problem for many sellers. Amazon reports that in Q4 of 2018, sellers sent back over 1 million items. This can be a huge blow to your business and finances if you aren’t careful.
There are several reasons why returns happen:
- You don’t have quality products.
- Your product is damaged or defective in some way.
- The consumer has buyer’s remorse after buying the product (this is especially common during holiday shopping)
- The consumer simply doesn’t like what they bought, even though they ordered it correctly according to your listing instructions and photos.
Here are some tips on how to reduce returns on Amazon FBA:
You can reduce the number of returns by using the right packaging.
Packaging products are an important part of the Amazon FBA process. If you want to make sure your products arrive at their destination undamaged, you’ll need to take the time to package them properly.
You may think that packing boxes and tape are all that is needed, but there are many other things involved when it comes to packaging products for Amazon FBA. The following are some tips on how to pack products for Amazon FBA:
Packaging materials: You will need proper packaging materials such as bubble wrap, Styrofoam peanuts, or newspaper if you do not want your product damaged during shipping. You should also use protective cushions around fragile items like electronics or glass items so they don't break in transit if they're accidentally dropped during shipping.
Shipping Instructions: When sending items via airmail they must be marked as such with stickers on each box so they're not mistakenly sent ground delivery instead; this can lead to delays in arrival times due to being held up by customs officials who need further verification before releasing them into international waters where most merchant ships sail past them daily along with other cargo ships owned by companies like Walmart which act as intermediaries between importers & exporters allowing you access into foreign markets without having any inventory at all!
Labelling is another important factor when it comes to reducing returns on Amazon FBA. Your product should have clear labelling with all relevant product information including UPC code, barcode, and brand name/logo included on both sides of the box so that it can be easily scanned at the point of sale. This will ensure that customers can identify your products quickly and easily when browsing online or in-store, which can increase sales potential
The last thing you want is for your customers to receive faulty or defective items from you! To avoid this happening make sure that all products sold through FBA meet Amazon's quality standards
Returns are not a problem when they are managed correctly - reduce the possibility of damage, keep communication channels open, and your customers happy.
While returns are a hassle, they are not a problem if you manage them correctly. By reducing the possibility of damage, keeping communication channels open and your customers happy you will have a much smoother experience when it comes to Christmas returns.