Seller Mistakes on Marketplaces That You Shouldn’t Repeat

It’s no secret that business processes don’t always go as planned by the seller. One small mistake is enough — and you’ll lose money. In order not to suffer losses and make money on Marketplaces, it’s better to learn from other people’s mistakes.

In this article, we’ll look at the most common mistakes sellers make and how to avoid them.

Mistake 1: Choosing a product without analytics

Investing money in the assortment of goods without checking its analytics means that you’ll be left with a large batch of illiquid goods. To select a popular product and sell it profitably, you need to first check the offers on the market and study the prices of competitors. This can be done in two ways: through Marketplace accounts or analytical services.

Mistake 2: Repeating someone else's strategies

Never start selling what others have — even if it sells well — without filtering and checking the best product categories on marketplaces personally, and not relying on the recommendations that YouTube bloggers and other influencers talk about a lot.

In order not to end up “in the same boat” with all entrepreneurs, try to act differently. To do this, you will need to analyze the market, identify the best products in conditions of high competition, etc. Such a strategy works well, and most importantly — you need to understand exactly what you are going for and why you will act according to a specific plan.

Mistake 3: Refusing to develop your own brand

Buying wholesale and selling individually is easier than launching your own brand, because you do not need to think about production, design, and reputation. That is why there are many sellers in this category, and due to high competition, they have a low rating and do not stand out from other, ordinary stores. When many sellers occupy a niche and, accordingly, many of the same products are presented, your own brand will help you stand out from competitors, which can be created by setting up your own production or launching it on contractual terms.

Own production

In these conditions, you control the quality of the goods, refine the assortment based on customer feedback, and test demand. Also, you manage the margin yourself — you can set a low markup at the start, and when you get stronger — increase it. Such an approach is best, for example, in the direction of furniture and handmade dishes.

However, it should be noted that it does not always work. Especially if you work with cosmetics or other small products — the costs will be high, because all products need appropriate certification and compliance with legislative requirements. The most difficult thing is to find qualified personnel.

Contract manufacturing

In this option, you negotiate with a factory that will create a product to your order and put your logo on it. Accordingly, all costs associated with raw materials, the production process, and personnel are included in the factory's costs. And you get a finished, branded product designed in accordance with your requirements.

Mistake 4: Preparing goods late for the high season

If you work with seasonal goods, you can consider yourself lucky, because in this segment you can quickly earn a lot of money. The main thing is to sell a specific batch of goods on time, because after the season ends, sales decrease significantly. In order for your goods to be ready for high demand, it is better to start preparing at least three months before the peak of sales. During this period, you will calmly organize the Marketplace warehouse, design the store information cards, and launch the appropriate advertising campaign.

Mistake 5: Refusing to delegate issues

Doing everything yourself — from purchases to designing product information cards — is not a very good idea, because no amount of sales and income will compensate for the physical fatigue that will result. Therefore, it is recommended to delegate part of the work to be done, especially the small and routine ones. For this, it is not necessary to have a permanent team. You can find people with the appropriate competence on the freelance market for one-time cooperation, and the costs will not be large.

In addition, you can use the automation tools and special programs available on the Marketplace.

Conclusion

In order not to make mistakes when going to the Marketplace, you need to:

• Select goods using analytics. Check the demand in your Marketplace personal account or, for more in-depth data, use analytics services. This will help you select a popular product and trade profitably.

• Do not enter the niche of a popular product. If the product has been at the peak of popularity for a long time, it is better to choose something else to avoid high competition and high prices from suppliers.

• Develop your own brand. Focus on creating a unique and memorable image. This will help you stand out from the crowd and gain more customer loyalty.

• Respond to sales in a timely manner. Keep an eye on promotions and seasonal sales to ensure that you have time to stock your products in the Marketplace or your own warehouse.

• Delegate routine tasks. Don't try to do everything yourself. Sometimes it's more useful and profitable to delegate various tasks to support staff. And leave the storage, delivery, and packaging of goods to Marketplace.