Top 5 Amazon FBA Mistakes You Must Avoid As A New Seller

How do I start an Amazon FBA business

Last updated on June 23rd, 2023

Written by Himanshi Raj

Are you a new seller planning to enroll your products in the Fulfilled by Amazon (FBA) program? If you’re looking for tips to start your business right and prevent making Amazon FBA mistakes, you are reading the right article!  

Being a new seller makes you prone to making miscalculations. While this is completely understandable, avoiding these errors before selling is crucial due to the platform’s strict regulations. You don’t want to suffer the costly consequences of policy violations.

This blog post will discuss the most common mistakes new sellers encounter and provide effective Amazon selling tips to avoid them. 

amazon's warehouse with employees sorting the products

Amazon FBA Selling Explained

Before you begin selling, let’s understand what Amazon FBA is. This program benefits both Amazon sellers and customers. Amazon FBA helps sellers handle the order fulfillment side of their Amazon business. Meanwhile, customers are allowed to receive their products faster. 

Establishing an Amazon FBA business benefits new sellers mainly because of its convenience. Your inventory will be sent over to Amazon’s warehouses, and they will be the ones to send it out to your customers. The program removes the hassle of packing and shipping your products on time. 

5 Amazon FBA Mistakes New Sellers Must Avoid

When starting a business at the retail giant, you may feel that making mistakes is almost inevitable. But many of these slips were not done deliberately or had anything to do with breaking the rules. Usually, they stem from a lack of thorough research.

Most new sellers on the platform are unfamiliar with how Amazon works. Overcoming the learning curves takes some time, so you must be patient. But, it will be more beneficial for you to be proactive and stay one step ahead by familiarizing yourself with common mistakes to avoid. 

This will help you navigate the Amazon marketplace more effectively and increase your chances of success. Check out five of these common errors below:

1. Using the Wrong Account Type

The first step in Amazon selling is registering an Amazon account for your business. You can register it either under a Professional or Individual Amazon seller account. Many Amazon FBA sellers fail to recognize and research the significant difference between these accounts.

For example, new Amazon FBA sellers are often lured by the lesser risk that the Individual seller account provides but may not realize it has a monthly selling limit of 40 products. If you are targeting to sell more than 40 products, it is best to register for a Professional seller account instead. 

While changing the account type can be a relatively simple solution for other sellers, it still requires time and effort. So, as a seller, it’s essential to understand how Amazon FBA business works if you intend to use it as your fulfillment method. Doing so helps you avoid unnecessary complications in the future.

2. Product Pricing is Incorrect

Another common Amazon mistake most sellers make is incorrectly pricing products on Amazon. It can either be a case of underpricing or overpricing, which can negatively affect your profit margin. To avoid this, do the following: 

  • Research your market and competitors comprehensively. 
  • Know who your target customers are. 
  • Add a unique feature to increase the profitability of products.
  • Consider competitive pricing. This is where you base your product prices on what your competitors offer. 
  • Consider the Amazon FBA fees you must shoulder, such as storage fees, order processing, and shipping costs when pricing your products.
As a new Amazon FBA seller, you might be tempted to price your products as cheaply as possible. This move is where most Amazon sellers fail, as it costs them substantial money in return for a few sales.

3. Amazon Business is Non-Compliant

Amazon’s Terms and Conditions exist for a reason. Since there are a lot of sellers on the platform, the retail giant maintains strict compliance in ensuring every FBA seller adheres to the rules. You must NOT simply skim these pages; take time to read and understand what is on them. 

Violating anything written on the Amazon FBA Terms and Conditions page can have huge and costly consequences. Even seemingly minor infractions can result in Seller Central account suspension, jeopardizing your inventory, production, and staff training investments. So ensure you are keen on abiding by them. 

💡 One of the rules Amazon FBA sellers often break is selling prohibited products on the platform. Thoroughly browse the complete list of products sellers can and cannot sell within Amazon’s Terms and Conditions page. 

4. Ordering More Than What You’re Capable of Selling

Before you order your inventory, ensure you can sell all of these within a specific time frame. Many sellers make a costly Amazon FBA mistake by letting their inventory sit in the warehouse, which is how they lose money.

For example, books on Amazon are one of the best-selling products that you can consider selling. If you are going in as a new Amazon seller, you will want to target the same sales velocity and volume that current products in this niche are already doing. However, if you sell in a different niche, you must order your inventory conservatively.

If you are getting your inventory from an offshore manufacturer, you can order the recommended minimum amount of inventory, which is 500 units. This number may be a good start, but  it is crucial to consider if you can manage to stock 500 units all at once.  

Since you also do not have enough data to support your products’ demands on the platform, it can be challenging to determine the ideal inventory level. 

5. Not Optimizing Your Amazon FBA Business’s Listings 

Relying on effective product listings to get sales on Amazon is non-negotiable. If not optimized, you won’t close the deals you’re anticipating. This is why learning how to make your product listings conversion-ready is important. But many new FBA sellers overlook this aspect or feel uncertain about the right techniques to apply.

Optimizing a product listing is not as simple as creating a catchy title and adding a few details about the item. A thriving product relies on enhancing all the different aspects of your listing, and that’s where these expert tips come in.

You may also utilize tools like Helium 10 and other Amazon resources to help you with keyword research, marketing, inventory management, and more. Give your products the best opportunity on the platform by making the most of available optimization tools and techniques.

Tips for New Amazon FBA Sellers

Now that you know the common Amazon mistakes you must avoid, you might wonder how to become an even better Amazon FBA seller. Check out these tips below:

  1. Find the Right Suppliers

Aside from choosing the right products to sell, how you choose your suppliers can also affect how much sales you get from the Amazon marketplace. Your suppliers should manufacture products consistently, welcome third-party inspection to check product quality and comply with the rules and regulations of Amazon and local authorities.

  1. Use High-Quality Product Photos

When customers purchase a product, product images are pivotal in influencing their decision-making process. 

a pie chart about how visual content influences digital purchases by emarketer 2021

You can invest in professional product photography services to improve your product photos. Still, it might not be cost-effective if you're a new seller on Amazon. Start with the basics of product photography. Ensure your photos are genuine and clutter-free, so customers can see your product clearly. 

a woman sitting at a table with a notebook and some packages, expressing joy while looking at something on her phone
  1. Gather Customer Feedback

To become a better Amazon seller, always pay attention to customer feedback, whether positive or negative reviews. Listen attentively to their valid concerns, promptly and appropriately address them, and strive for improvement.

Utilize the Amazon Early Reviewer Program to collect organic reviews. If you can't pay for the program, use the "Request a Review " button and gently ask your customers to write their thoughts.

How about negative reviews? Can I remove them? They can also be helpful (albeit valid and not too many). To deal with these ratings, understand the issues first and work on your product for improvement. But if you feel these ratings violated the policies, you can have them removed. 

Never resort to black hat strategies like paying or offering incentives in exchange for positive reviews. If you do this, Amazon will take your seller account down and may prevent you from selling on the platform in the future.

  1. Answer Customer Queries Within a Day

In the world of eCommerce, customer satisfaction is paramount. They can make or break the sales touchpoint. To ensure you provide a satisfying experience for buyers, promptly address their inquiries and comments within a day of receiving them. 

Establish yourself as a reliable and responsive seller by prioritizing timely and appropriate responses. This demonstrates your commitment to meeting your customer’s needs. 

Key Takeaway

Selling on Amazon is not a get-rich-quick scheme. It requires hard work. Many new sellers make costly mistakes because they lack the knowledge about the platform and the proper methods to make it there successfully.

With that in mind, we hope you were able to familiarize yourself with the common errors, ways to avoid them, and how to drive actual sales right at the early stages of your selling journey. Remember, every mistake can be an opportunity to grow and improve your business!

Are you ready to start selling on Amazon, or do you need further help with your Amazon seller FBA account? Work with a reputable Amazon Seller account specialist today! Contact us and we will get you started with your dream business in no time. 

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