10 Common Mistakes That New Amazon Sellers Make

February 16, 2023

Written By SAMRUDHA SALVI  |  Amazon  |  0 Comments

Many sellers enter the Amazon FBA arena with one big myth- Amazon is easy and fast money. This myth is one of the biggest mistakes that new sellers make. 

The myth busts within the first few months of selling on Amazon, and the seller quits thinking that they are not good enough. 

There is a lot to consider before you even begin selling on Amazon. But it is not impossible to master the Amazon FBA space, especially if you keep a few things in mind. 

If you focus on a few important things like managing your product launches, tracking inventory, analyzing the marketplace, and utilizing your resources, you can make a good earning from Amazon.

Why do the new FBA sellers fail so fast?

There are so many reasons why many new sellers fail. They jump into the market without proper research. Often sellers ignore the tools and resources available to them. 

What should a new seller do, then?

A good head start for new sellers is the success stories of other sellers. 

The most successful Amazon sellers do things a certain way- they know how to launch, what to launch, and where to launch the product. 

The post-launch planning is an important aspect too that these sellers consider. 

One of the main reasons why so many new Amazon FBA sellers fail in their initial launch is because they don’t think enough about the product launch. The launch is not the only thing, comprehensive market research and planning before the actual launch is vital. These things will determine the success of your product. 

If you are launching a product, there are a few things you should plan very sincerely. But, more than what you should do, there are some Amazon FBA mistakes you should avoid making to win the selling game on Amazon. 

As an Amazon FBA seller- patience is the key!

Another big mistake that new sellers on Amazon make is that they get impatient and are discouraged very easily. They think that they will start making profits within the first few weeks. These unrealistic expectations become the reason for their failure. 

For any Amazon FBA seller, it takes a good time before they start making profits. 

There is more to Amazon FBA, and if you avoid making the mistakes most new sellers make, there is no stopping you from earning well on Amazon. 

So, let’s dig in!

Jumping into an over-saturated niche

Product and market research are two essential areas to focus on before you start with a product. More often, sellers choose a niche and a product with heavy competition. 

Picking an over-saturated niche will be a waste of your resources. Some sellers already have authority over that niche.

These sellers have established their brand identity and are already working with millions in revenue. 

Starting from scratch and competing against these giant sellers would be a big mistake. 

I recommend doing thorough product research and choosing the one where you can get a good competitive edge in terms of quality or price.

This way, you are picking a market with enough space for your growth, not one that is already very crowded. 

Lack of market research

You might have already done a little market research if you have decided to launch a product. However, you should note a lot of things while doing market research. 

Lack of market research is one of the main reasons why most new FBA sellers fail in their product launches. While selecting a product to sell, you need to understand the need of the customers.

This includes analyzing the demand for the product and its competition in the market. 

Along with this, you need to have an in-depth analysis of the customer demands- the trends in their choices, what kind of products they prefer, which platforms are preferred, price according to customer and competition, etc. 

To select a product that sells well on Amazon and your brand stands out, you need to understand the market and its customers.

Select a niche where you can have a good footing in terms of price, quality, or both. 

Market research may seem tedious and time-consuming, but it gives you a big headstart. 


Mismanagement of the product launch

Launching a product is a big step for your brand. There are a few things that are very important for a successful product launch.

Preparing the inventory, listing it on the platform, and making it live are not the only things you should focus on while launching. 

When launching a product, you need to consider all aspects of the launch. Here are the things you need to pay special attention to:

  • Use social media platforms like Facebook, Instagram, etc. to promote your product. These promotions can include paid promotions through ads or collaborating with people to gain authenticity for your brand.
  • Providing discount codes and giveaways is a great way to attract customers to your products. These discounts can be provided as limited-time deals to new customers. Such offers make your product more appealing to potential customers.
  • Organize and plan your PPC ad budget that will be used for this launch. This way you can optimize and track your budget for promotions. You can s65ee where the ads work best and where they do not. You can use Amazon ads on your product listing. These can boost your initial sales.
  • Search Engine Optimization is another important factor for the success of your product launch. You need to pay attention to SEO and optimize your listing according to the relevant, high-volume keywords. This will make your listing relevant for the buyers that search in your product category. 


Ignoring the advantage of sponsored brands and Ads

A big mistake that new Amazon FBA sellers make is not utilizing branded tools. 

One of the best tools for new sellers is the Sponsored Brands and Sponsored Brand Video ads platform. These will not only help you in boosting sales but will increase your visibility on the platform. 

The Sponsored Brand Video Ads by Amazon are partnered with other platforms like Twitch, ESPN, etc, and are shown on these platforms too. These ads will help in increasing visibility and grow your brand image. 

Managing these Sponsored Video ads is another important aspect. You need to analyze what kind of ads are working for you and how to optimize these ads for more sales perfectly. 

If you do not include these Amazon Sponsored Ads in your product launch, you cannot make it successful. 


Using automation too soon

Managing all aspects of a product, especially promotion and marketing, may seem a very tedious and time-consuming process.

Creating content for promotion on social media, making an email list, organizing ad campaigns, and managing customer feedback can take a lot of your time. 

So, you might think that you can immediately automate these tasks and focus on other products. 

However, I recommend that you manage them manually for the initial phase. Automating these aspects too soon can be too risky for the performance of your product. 

Automation can help in saving a ton of time but it would work better if you automate when your sales get stable and the promotions are more manageable. 


Overthinking your first FBA Product Purchase

As important as market research is, it is endless. The more products you research, the more confused you will get.

There is no straight formula or an exclusive list of products that sell better on Amazon. 

You can research the product and analyze its selling potential as much as you want, but you can never be assured of its success in the market. 

The only way to find out what works well is by trying it out. 

You can start by purchasing and sending in a shipment as soon as possible.

This way, you will learn a lot about what works well and what doesn’t.

These first shipments will help you in overcoming the initial fear, and you'll get the experience of selling on Amazon. 


Thinking Amazon FBA is easy money

Most new Amazon FBA sellers come with the expectation that selling on Amazon is easy and you will get money without putting much effort.

These expectations shatter within the first few months, and these sellers quit before even they begin to sell. 

So, before you even begin, it is important to understand that Amazon FBA is not easy, and it will take a while before you start making an income out of it.

You will need to invest your time, money, and hard work for it to start generating money. It is neither fast money nor easy. 

The learning curve is steep, and it can get frustrating. Amazon FBA fees may seem too much at this point.

All these may discourage you and make you feel that quitting is better. 

But let me tell you, it will all be worth it. If you sincerely put efforts into making your brand grow on Amazon and understand the aspects of selling on Amazon, then all this will show fantastic results in the long run. 


Not paying attention to Customer Feedback

Customer feedback is an important aspect of your business on Amazon.

If you ignore your customers' feedback, your sales can decrease drastically. 

Alternatively, if you don’t focus on getting that post-sale customer feedback at all then you might disappear among your competitors. 

To get a unique stand among the hundreds of sellers on Amazon, you need to generate and analyze customer feedback.

This doesn’t mean you compel the customers to give you good feedback or generate fake reviews. 

The best way is to use a tool that can help you get more quality feedback.

You can try Feedback Express, AMZFinder, and ECom Engine’s Feedback Five are some fantastic tools that can help you automate this process and get more feedback.

They work over several platforms and your fee will be worth it. 


Not analyzing Shipping costs

Most sellers that fail on Amazon have made the mistake of not analyzing their shipping costs.

When you don’t consider the shipping cost and price of the product, it can significantly affect your profit margins. 

It is very appealing to add the “free shipping” tag on your products but you must accommodate these somewhere else.

Either increase the cost of your product or offer a shipping cost that is lower than the other options. In either case, you will need to consider the effect of shipping on your profits. 

Alternatively, if you are offering your product at a very high shipping cost, it will reduce your sales. 

I recommend keeping your shipping cost at a competitive edge or making it free by increasing the cost of your product.

This way, you can make your product more appealing without hurting your profit margins.


Mismanaging the inventory

Not paying attention to the inventory can make more products run out of stock.

This can be very bad for your Amazon SEO and can substantially downgrade your ranking. 

In addition to this, you also lose potential sales. So, it is better you always keep your inventory stocked and inventory.

I recommend using a dedicated software or tool to track your stock. 

Final Words

Amazon is a big marketplace. New sellers come and go every day. There is a huge myth promoted by the hundreds of courses for Amazon sellers that makes Amazon seem easy and fast money.

The reality is far away from what is taught in these courses.

The best way is to follow the success stories, learn from their mistakes, and keep hustling in your business. 

If you stay clear of these mistakes, you are good to go!

Samrudha Salvi ‧ Author

With more than 5 years on selling on amazon, and helping 100s to get started on Amazon.