Common Mistakes When Selling on Amazon (And How to Avoid Them)

Selling on Amazon can be a great way to launch or scale a business. The platform gives you access to millions of potential customers, streamlined logistics, and international reach. But let’s be honest—selling on Amazon isn't as simple as just uploading a product and watching sales roll in.

Many new (and even experienced) sellers fall into avoidable traps that can end up costing money, time, and a whole lot of stress. Whether you're just starting or looking to optimise your current strategy, understanding the most common mistakes—and more importantly, how to avoid them—can give you a real edge.

Let’s break them down.

Jumping in Without Research

One of the biggest and most frequent mistakes is diving into Amazon without a clear plan or market research. It’s easy to get excited by success stories and think any product can perform well, but the reality is that not all niches are created equal.

What goes wrong:

• Choosing oversaturated or highly competitive products.

• Selling items with low demand or razor-thin profit margins.

• Ignoring customer needs or seasonality.

How to avoid it:

• Use tools like Jungle Scout, Helium 10, or Amazon’s Best Sellers list to evaluate demand, competition, and pricing.

• Analyse keyword trends and read customer reviews to understand gaps in the market.

• Start small, test your idea, and scale from there.

Poor Product Listings

You can have the best product in the world, but if your listing is unclear, boring, or unconvincing, it simply won’t sell. Amazon is a visual platform, and the first impression matters—a lot.

Common issues:

• Low-quality images or too few product photos.

• Weak product titles with no relevant keywords.

• Vague descriptions that don't address customer pain points.

What to do instead:

• Invest in high-quality photos showing different angles and uses.

• Write clear, keyword-rich titles (without keyword stuffing).

• Use bullet points to highlight features and benefits.

• Optimise your content for both the algorithm and the reader.

Ignoring SEO and Keywords

Amazon is a search engine. If you’re not thinking about keywords, your product might never even appear in front of potential buyers.

The issue:

• Relying only on branded terms.

• Not researching how customers are actually searching for your type of product.

Solution:

• Use keyword research tools to discover high-volume, relevant keywords.

• Incorporate them naturally in your title, bullet points, description, and backend search terms.

• Update your listings regularly based on performance and trends.

Mispricing Your Products

Getting pricing wrong is a recipe for disaster. Set it too low, and you might not make a profit. Set it too high, and you could price yourself out of the market.

Where sellers go wrong:

• Not accounting for Amazon’s various fees (FBA, referral, storage, etc.).

• Forgetting to include VAT or shipping costs.

• Underestimating how price impacts buyer decisions.

Tips to fix it:

• Use an Amazon fee calculator to understand your actual profit margins.

• Research your competitors and set a price that reflects your value while remaining competitive.

• Factor in promotions, discounts, and long-term sustainability.

Neglecting Customer Service

Just because Amazon handles fulfilment doesn’t mean you can sit back and ignore your customers. Your reputation—and sales—depend on how customers perceive you.

Mistakes include:

• Responding late (or not at all) to messages.

• Not resolving complaints or refund issues properly.

• Ignoring negative reviews.

How to improve:

• Monitor your messages and respond within 24 hours.

• Be polite, solution-oriented, and transparent.

• Learn from negative reviews and improve your product or process accordingly.

Running Out of Inventory

It’s a surprisingly common problem: things start to go well, and then boom—you run out of stock. Not only do you miss out on sales, but your search ranking takes a hit too.

The cost of this mistake:

• Lost visibility and momentum.

• Decreased customer trust.

• Potential penalties from Amazon.

How to avoid it:

• Monitor your inventory levels regularly.

• Set reorder thresholds and automate inventory alerts.

• Plan for seasonal spikes and unexpected surges in demand.

Violating Amazon’s Policies

Amazon has strict rules about everything—from product categories to customer communication. Even unintentional violations can result in warnings, suspension, or permanent bans.

What goes wrong:

• Using banned words or phrases in listings.

• Asking customers for positive reviews in the wrong way.

• Selling restricted or counterfeit items.

Pro tips:

• Read and understand Amazon’s seller policies (they change often).

• Avoid manipulative language or false claims.

• Stay up to date with any policy updates or changes to TOS (terms of service).

Focusing Only on Amazon

Amazon is powerful, but relying solely on it is risky. If the algorithm changes or your account is suddenly suspended, your entire business could be at stake.

Common oversight:

• No presence outside Amazon.

• No email list, social media, or own website.

How to diversify:

• Build a brand presence through a website or blog.

• Use social media to engage with your customers and direct traffic to your Amazon store.

• Consider platforms like Etsy, eBay, or your own Shopify store as secondary channels.

Ignoring Reviews and Feedback

Social proof is everything. Product reviews directly influence buying decisions, so ignoring what your customers say (or not encouraging reviews at all) is a mistake.

Typical missteps:

• Not responding to critical feedback.

• Failing to follow up with customers post-purchase.

• Trying to game the system (e.g., fake reviews).

Smart strategies:

• Use Amazon’s “Request a Review” button.

• Add packaging inserts encouraging honest feedback.

• Monitor your reviews to spot trends and identify improvements.

Not Investing in Marketing or PPC

Even if your product is great and your listing is optimised, you still need to bring in traffic—especially at the start. Many sellers expect organic sales to take off instantly, but the reality is that visibility takes effort.

Where sellers stumble:

• Relying only on organic search.

• Running ineffective or unmanaged ads.

What you can do:

• Learn the basics of Amazon PPC (sponsored products, headline search ads, etc.).

• Start small and test different keyword strategies.

• Track your advertising cost of sale (ACoS) and optimise over time.

Final Thoughts

Selling on Amazon isn’t a guaranteed goldmine, but it can be a powerful tool when approached strategically. Most of the common mistakes we’ve covered here come down to a lack of preparation, knowledge, or attention to detail.

The good news? Every mistake is avoidable with the right mindset and approach. Stay curious, keep learning, and treat your Amazon business like what it is: a dynamic, competitive marketplace that rewards effort, consistency, and smart decisions.

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