Top 10 Mistakes New Amazon Sellers Make and How to Avoid Them

Starting an Amazon business is an exciting venture, but it can be full of challenges, especially for those new to the platform. While Amazon provides tools and resources to help sellers succeed, certain common mistakes can lead to lost sales, unnecessary costs, and frustration. This guide breaks down the top 10 mistakes new Amazon sellers make—and, more importantly, how you can avoid them to build a successful business from the start.

1. Not Conducting Thorough Product Research

One of the most common pitfalls for new sellers is jumping into a product category without thorough research. Choosing the wrong product can result in poor sales, high competition, and narrow profit margins.

How to Avoid It

• Use tools like Jungle Scout or Helium 10 to analyze demand, competition, and pricing.
• Look for products with stable or growing demand and avoid highly saturated categories.
• Consider seasonality and customer preferences to choose products with long-term potential.

2. Skipping Keyword Research for Product Listings

Optimizing product listings with relevant keywords is crucial for visibility on Amazon. New sellers often neglect keyword research, leading to poor search rankings and low visibility.

How to Avoid It

• Use keyword research tools like Keyword Tool for Amazon or Helium 10’s Magnet to identify high-traffic keywords.
• Incorporate these keywords naturally into your title, bullet points, and description.
• Regularly review and adjust your keywords to keep up with changing search trends.

3. Poor Product Listing Quality

Many new sellers underestimate the importance of a high-quality product listing. Low-quality images, vague descriptions, and lack of details can deter potential buyers.

How to Avoid It

• Use high-resolution images that show the product from different angles and highlight features.
• Write clear, engaging product descriptions that focus on benefits, not just features.
• Include concise bullet points to make essential details easy to read.

4. Ignoring Amazon’s Rules and Policies

Amazon has strict rules for sellers, and violating them—even unknowingly—can lead to account suspensions or product removal. Many new sellers overlook these guidelines in their eagerness to start selling.

How to Avoid It

• Familiarize yourself with Amazon’s policies in Seller Central, especially regarding prohibited products, listing guidelines, and customer service standards.
• Follow Amazon’s brand, packaging, and labeling requirements carefully.
• Regularly check for Amazon’s policy updates to stay compliant.

5. Underestimating the Importance of Customer Service

Customer satisfaction is crucial on Amazon, as it directly impacts reviews, ratings, and sales. Some new sellers fail to respond to customer inquiries promptly, leading to negative reviews and a damaged reputation.

How to Avoid It

• Respond to customer inquiries within 24 hours to meet Amazon’s standards.
• Use automated customer service tools like FeedbackWhiz or Seller Labs PRO to manage feedback and reviews.
• Address complaints professionally and offer refunds or replacements when needed to resolve issues.

6. Overlooking the Power of Amazon PPC Advertising

With increasing competition, many new sellers struggle to gain visibility without using Amazon’s PPC (Pay-Per-Click) advertising. Neglecting PPC can result in slow sales and low rankings.

How to Avoid It

• Start with a small budget and use automatic campaigns to let Amazon identify relevant keywords.
• Monitor performance and gradually shift to manual campaigns to gain better control over keywords and bids.
• Track key metrics like ACOS (Advertising Cost of Sale) and CTR (Click-Through Rate) to optimize your ads effectively.

7. Mismanaging Inventory and Stock Levels

Running out of stock or overstocking can both be costly mistakes. New sellers often miscalculate demand, leading to missed sales or high storage fees.

How to Avoid It

• Use inventory management tools like RestockPro or SoStocked to forecast demand based on historical data.
• Monitor your inventory regularly, especially during high-demand periods like holidays.
• Keep track of Amazon’s long-term storage fees and ensure that you don’t overstock products that could become liabilities.

8. Setting Prices Too Low or Too High

Pricing can be tricky, and many new sellers set prices that are either too high (leading to fewer sales) or too low (resulting in razor-thin profit margins).

How to Avoid It

• Analyze competitors’ pricing to find a competitive yet profitable price range.
• Consider using Amazon’s automated repricing tools, like RepricerExpress or BQool, to stay competitive without undercutting your margins.
• Factor in all Amazon fees, shipping costs, and desired profit margins before setting your prices.

9. Neglecting the Importance of Product Reviews

Product reviews significantly impact buying decisions, but new sellers often overlook strategies to build a solid base of positive reviews, making it difficult to build credibility.

How to Avoid It

• Request feedback through Amazon’s “Request a Review” button or use automated follow-up tools like Feedback Genius.
• Encourage satisfied customers to leave reviews, but avoid incentivizing or requesting positive reviews specifically, as it violates Amazon’s policies.
• Address negative reviews constructively to show potential buyers your commitment to customer satisfaction.

10. Not Tracking Profitability and Key Metrics

Some new sellers get so focused on sales that they lose track of profitability. Without monitoring key metrics, it’s easy to overlook costs and end up with lower-than-expected profits.

How to Avoid It

• Use analytics tools like SellerBoard or InventoryLab to track expenses, revenue, and profit margins.
• Regularly review your ACOS, CTR, conversion rates, and other metrics to identify areas for improvement.
• Calculate your net profit per product to ensure that each item contributes to your business’s profitability.

Conclusion: Build Your Amazon Business with Confidence

Starting on Amazon can be challenging, but avoiding these common mistakes can save you time, money, and frustration. By conducting thorough research, optimizing listings, maintaining inventory levels, and prioritizing customer service, you set a solid foundation for long-term success. Remember, success on Amazon requires adaptability and continuous learning—always be open to refining your strategies as you grow. With the right approach, your Amazon business can become a profitable and rewarding endeavor.