With many sellers offering similar items, it can be difficult for Amazon sellers to establish ongoing relationships with buyers or get repeat purchases. Shoppers have endless choice and tend to bounce between sellers.
Amazon dictates policies and algorithms that sellers must strictly follow. But sellers have little power to dispute sudden account suspensions or policy violation claims. This lack of control puts accounts at risk.
Sellers take on greater risk in accepting returns and issuing refunds. Reimbursements from Amazon often don't make up for losses from fraud or inaccurate claims. Sellers have restricted options to dispute problematic reimbursements.
Numerous fees apply when selling on Amazon, including: membership fees to access the platform, monthly account fees, referral fees per item sold, and more. Fees can quickly reduce profit margins if not accounted for.
With millions of sellers on Amazon, standing out is an enormous challenge. Customers have endless choice when browsing for products, so individual sellers can't count on sales volume despite high demand.
While Amazon sets rigid policies and algorithms, sellers can retain some control by carefully reviewing the rules, staying compliant, and utilizing tools like feedback requests and policy violation monitoring.
Building a strong brand and developing relationships takes effort on Amazon. Sellers should engage customers post-purchase through email and social media. Loyalty programs and special offers also encourage repeat purchases.
