Pattern is continuously trying to better understand brands’ performance and experience on Amazon through our research and marketplace data. Our 2022 Amazon Vendor Survey report uncovered common pain points executives faced selling on Amazon in North America.
We found the top Amazon problems in North America are the same as those experienced by executives throughout Europe and the Middle East as well. The top trading problems are not exclusive to any particular region, and we know these universal problems can most often be solved with a 3P partner.
Top Amazon Trading Problems Brands Face
The top trading problems brands in North America face while selling on Amazon:
1. Inadequate forecasting methods to keep enough stock in hand: According to 35.63% of the survey respondents, many brands lack the resources and expertise to accurately forecast stock levels. Inadequate forecasting methods can lead to high costs, non-competitive prices, and dissatisfied customers.
2. Inventory not appearing online after being delivered to Amazon warehouses: 29.12% of respondents mentioned the struggle of not having their inventory appear online, even after being delivered to Amazon warehouses. The lag in time for inventory to reach the digital shelf hurts brands in the long-run, wasting time and money.
3. Your own supply chain being disrupted: 23.37% of respondents mentioned their own supply chain being disrupted as a common trading problem. Supply chains can be disrupted by a variety of factors: inventory order delays, supplier issues, shipping expenses, and problems with existing inventory.
4. Getting product into Amazon warehouses: Of the brand executives who took the survey, 22.99% mentioned this challenge. This typically happens because Amazon FBA can be difficult to navigate and comply with. Illegible barcodes, not labeling your products correctly, and a failure to include certain details on barcodes are all reasons your product could be rejected by Amazon FBA works.
Pattern’s Trades Problems for Solutions
Universal problems require universal solutions. As a 3P partner and global ecommerce accelerator, Pattern helps brand executives solve their challenges on Amazon and other marketplaces.
Three ways Pattern helps brands solve Amazon trading problems:
1. Provide Accurate Data and Forecasting Methods
According to more than 35% of the survey respondents, many brands lack the resources and expertise to accurately forecast stock levels. Stockouts can lead to two major problems for your business: wasted ad dollars and lowered rankings in organic search results. At Pattern, we focus on providing our brand partners with the accurate data they need to make the best decisions for their business, including when it comes to inventory management.
Our software technology can help you avoid stock-outs, high costs, non-competitive prices, and dissatisfied customers.
2. Switch to Direct Shipping
Being a 1P seller creates most of the trading problems brand executives face selling on Amazon. Switching to a 3P partner, like Pattern, also switches you to a direct shipping model.
Once you shift to having a 3P partner like Pattern, your partner manages the operations and has the operational expertise to keep up with new regulations, implement necessary changes, and pull the heavy load for you.
3. Few to No Chargebacks
As a 1P seller, if there are any issues with the products you send to Amazon, they will charge you for the time and effort it took them to resolve those issues. Chargebacks can include unauthorized use of credit cards, operational malfunctions (late arrivals, technical issues, etc.), and packaging non-compliance.
In a 3P seller relationship, most chargebacks can be avoided and, if there are any, you don’t have to deal with them–your 3P partner does. As a 3P partner, with over a decade of selling on Amazon, Pattern has the experience to resolve and, more importantly, avoid these types of issues.
Solve Your Trading Problems With Pattern
The good news about the trading challenges brand executives are facing as a 1P seller on Amazon is they are avoidable and solvable. In a 3P partnership, the brand has control of inventory management, allowing you to stay in-stock, maintain control of forecasting, and effectively plan for promotions or holidays.
With Pattern as your 3P partner, you can simplify forecasting and get inventory to the right place. You ship our purchased inventory to Pattern’s warehouses, and we handle the rest—distribution across Amazon’s warehouse network for FBA, repackaging products into bundles, and delivering your orders on time.
Want to solve your trading problems on Amazon? Contact us.