4 Common E-Commerce Mistakes New Online Sellers Make

By Michelle Covey

From selling creative masks to introducing a must-have item for the home gym, thousands of new small businesses have started up as a result of newfound time and opportunity due to the pandemic. Furloughs, layoffs, closed businesses, and working from home led to an explosion of e-commerce startups in 2020 that is expected to continue throughout the rest of 2021.

Couple these workforce changes with the fact that there have never been more ways to sell products online, and you’ve got a perfect storm of entrepreneurship. Etsy reported late last year that the number of active product listings on its website was up to 80 million, representing a 20% year-over-year increase. Major e-commerce integrators like Shopify have also reported exponential growth since the start of the pandemic—new stores created on the Shopify platform grew 71% in Q2 2020 compared to Q1 2020, with a record number of merchants added to the platform in Q3.

There are a number of unexpected challenges that can happen when listing your product for sale online. If you are like the millions of Americans who have turned their hobbies into a full-fledged new business with big growth aspirations, avoid these common e-commerce mistakes that new sellers make when launching their first product, and save yourself valuable time and money later.

4 common e-commerce mistakes new sellers make

E-commerce mistake #1: Not learning the lingo

You’ve got a great product to sell, and maybe even a great business plan—now what? Before you rush to list your products, it is helpful to do a little homework to understand the requirements of online marketplaces and some of the common terms.

Amazon Seller Central and other online marketplace guidelines are helpful, but they can flood users with new terms they’ve never encountered before. For example, there are many acronyms used to describe the product identification numbers that are needed to ensure your products will be more searchable online—the difference between a GTIN (Global Trade Item Number), a UPC (Universal Product Code), and an ASIN (Amazon Standard Identification Number) can be tricky. GTINs are globally unique product identifiers used globally and across multiple platforms that are encoded into UPC barcodes, while ASINs are specific identifiers for the Amazon platform.

Consult e-commerce specialists’ glossaries to demystify the lingo and avoid errors in your startup process.

Mistake #2: Taking shortcuts

Sellers might make the common e-commerce mistake of rushing to list a product that is in high demand without realizing that shortcuts can be costly. For example, a stay-at-home mom, who goes by Crafty Christy, decides to put her sewing skills to good use to create kid-friendly masks in vibrant colors and styles. In preparing her items for sale on Amazon, she encounters a website that promises quick and cheap product codes. After attempting to list her products using these codes, Crafty Christy is disappointed when she receives a message back saying the product codes are already listed to another product.

While they seem quick and easy, GTINs purchased from a third-party seller are often rejected by Amazon for this reason—they are not unique to your product and are not linked to your brand. Authentically created GTINs are like a fingerprint—no one else in the world should have the same one. Going another route can add unexpected costs, including those associated with relabeling products, returned shipments, and disorganized inventory databases, and can get you rejected from Amazon. It’s hard to bounce back with large retailers after a poor encounter at the onset of a business relationship.

More articles from AllBusiness.com:

• Debunking Barcode Myths: Getting Your Product Labeled Correctly for Retailers
• Go Beyond Amazon: Small Businesses Today Must Take a Multi-Site Approach to E-Commerce
• 7 Strategies for Small Business Owners Selling Products on Amazon
• 4 Proven Ways to Make Money Online

Mistake #3: Ignoring the power of product details

The more product information you give to consumers in a product listing, the more likely they are to find and trust your product. Going back to the Crafty Christy example, her masks could be much more discoverable with a description that includes details on what type of fabric the mask is made from, if it is double layered, and if it has adjustable straps, in addition to showing images of the product at multiple angles.

Also, put yourself in the shopper’s shoes. Nearly 80% of shoppers have found themselves shopping more on mobile since the start of the pandemic, according to Sezzle. With less shopping being done in stores, there is more of a chance for consumers to encounter unique finds as they scroll online product listings.

A survey from Periscope by McKinsey confirmed that pandemic-era shoppers place high value on complete product information and clear images. This just provides even more reason to anticipate the reviews and questions you might receive once you are listed. Make sure you are as precise as possible when listing product sizes, measurements, and dimensions, and fill out all the numerous fields that Amazon offers when preparing your listing.

Mistake #4: Underestimating your vision

We've all heard the saying “Be careful what you wish for.” Another common e-commerce mistake is hoping for huge sales but not having any plan in place should that really happen. While there are many small businesses that take time to find an audience, there are many who also are caught off guard by a sudden explosion of sales.

In today’s unpredictable environment, never underestimate your ability to connect with online shoppers. For example, Ebony Robert, a teacher turned small business owner, launched her line of all-natural moisturizer on Walmart.com after getting a positive response from her family and students who suffered from eczema.

“I listed my products for the first time online a couple of weeks before Black Friday and thought it would bring in a few orders," she says. "Next thing I know, my kitchen and dining room are like a miniature warehouse!”

When you follow the guidelines and present your product with full details and photos, you can rapidly find yourself “winning the Buy Box” before you’ve even reordered supplies.

Avoid common e-commerce mistakes and find online success

Ultimately, the pandemic has changed the way we work and live, and in turn, the way we shop and sell. With more time and opportunity to finally launch that dream business, entrepreneurs like you can be on the road to success by focusing on the details and building a foundational education on the basics of retail.

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