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Learn From Our Experience! Top 6 Things to Avoid While Starting a Business on Amazon

Things to avoid when starting a business on Amazon

Who doesn’t want to start a business on Amazon, right? But not all fairytales are sculpted into a sweeter reality. A bitter reality is that in a swamp of passionate and coffee-fueled individuals with undying aspirations to be in the limelight, earn millions, and get featured on Forbes 30 under 30, only pea-sized people can live these dreams.

 The reason is quite obvious! You are unaware of the drill. Yes, the actual things that you need to avoid while starting a business on Amazon. But, fear not as we have got you covered.

We know that building dreams, creating strategies to breathe reality into them, and then anticipating life with all the fruits that you were thinking of is followed by an adrenaline rush. Guess what? It’s time to amplify that adrenaline because we are here with the top 6 things to avoid while starting a business on Amazon.

Why You Should Trust Us When It Comes To Amazon Strategies?


Business on Amazon


There is no justification needed for the fact that we all want credibility when it comes to trusting someone or something. Now, starting a business on Amazon is definitely not your ordinary “SOMETHING”, it is a big deal. So, why should you trust e360Digital when it comes to Amazon’s strategies and tactics? The answer is pretty clear.

With ample experience in the Amazon niche, we have helped bounteous businesses start their business on Amazon and excel at it. A prime example is Garret, he is one of our long-term clients and through our expertise, the team of e360Digital helped him not just set up a business on Amazon but also doubled its sales and created a significant impact overall.

To redefine your trust, you can read the case study of Garret which will create a crystal clear vision for you as to why we are the real maestros when it comes to Amazon!

Initial Challenges Faced By People Attempting to Start a Business on Amazon


Challenges to start a business on Amazon


Starting a business on Amazon is no piece of cake and every single person who has once attempted to start a business or is just a newbie must have encountered these significant challenges.

Before digging into the big talk, if you are concerned about how you can actually start a business on Amazon then a beginner’s guide for sellers by Amazon would help you. Make sure to check it out!

Let’s take a look at the challenges that people often face when it comes to starting a business on Amazon, make sure to skim through all as you might be facing one:

High Competition

The Amazon marketplace is highly competitive, with millions of sellers vying for the attention of customers. This can make it difficult to stand out and get your products noticed.

Amazon Fees

Amazon charges sellers a variety of fees, including listing fees, referral fees, and shipping fees. These fees can add up, especially if you’re selling high-priced items.

Cash Flow Problems

Amazon sellers often have to pay for inventory upfront, even before they start making sales. This can put a strain on cash flow, especially for new businesses. Talking about the cash flow problems, The New York Times created a whole article that targets the employer side of Amazon. You can always look into it to keep yourself updated about everything!

Product Returns and Refunds

 Amazon has a generous return policy, which means that sellers are often responsible for the cost of shipping and processing returns. This can be a significant expense, especially if you’re selling high-value items.

Amazon Seller Account Suspensions

Amazon can suspend seller accounts for a variety of reasons, such as not meeting performance standards or violating Amazon’s policies. This can be a major setback for businesses that rely on Amazon for sales.

Customer Service

Providing good customer service can be challenging for Amazon sellers, especially if they’re selling a large number of products. It’s important to be responsive to customer inquiries and resolve issues quickly and efficiently.

Fraud and Counterfeiting

Amazon is a target for fraud and counterfeiting. Sellers need to be aware of these risks and take steps to protect themselves. If particular steps are not taken at the correct time then one might end up losing it all!

One more thing, before we finally reveal the top 6 mistakes to avoid while starting a business on Amazon, we want you all to have a keen knowledge about how to actually kickstart your business on Amazon as a beginner and no one has explained it better than Amzscount. There is a proper detailed guide on their blog about this, so don’t miss out if you really want to excel in your Amazon game!

Top 6 Things That You Must Avoid While Kick-Starting Your Amazon Venture


Things to avoid while starting a business on Amazon


Starting a business on Amazon can be an exciting and potentially lucrative endeavor. However, like any entrepreneurial journey, there are pitfalls and challenges that you should be aware of to ensure your success. In this guide, we’ll delve into the top six common mistakes that new Amazon sellers often make and how to avoid them. Let’s dive right in!


Mistake 1: The Neglected Goldmine – Customer Feedback and Reviews


Starting a Business on Amazon


One of the biggest missteps new Amazon sellers make is disregarding customer feedback and reviews. These are invaluable sources of information that can help you understand your customers’ needs, improve your products, and boost your sales. Here’s how to make the most of them:

Amazon Ratings and Reviews

Encourage buyers to leave reviews and take their feedback seriously. Address any negative feedback promptly and professionally.

Seller Feedback

Keep an eye on your seller feedback as well. It impacts your seller rating, which, in turn, affects your visibility on Amazon.

Customer Q&A

Engage with potential buyers by answering their questions about your products promptly and accurately. By actively participating in these feedback loops, you can build trust with customers and refine your offerings over time.


Mistake 2: Violating Amazon Policies – A Detour to Disaster


Mistakes while starting a Business on Amazon


Amazon has strict policies and guidelines in place to maintain a fair and trustworthy marketplace. Violating these policies can result in penalties, account suspension, or even closure. Here’s how to stay on the right side of Amazon’s rules:

Read Amazon’s Policies

Familiarize yourself with Amazon’s Seller Policies, Product Guidelines, and Code of Conduct. Ignorance is not an excuse.

Intellectual Property

Respect intellectual property rights. Don’t sell counterfeit or trademarked products without proper authorization.

Prohibited Items

Understand what products are prohibited on Amazon. Selling banned items can lead to severe consequences. By following Amazon’s policies diligently, you’ll build a solid foundation for your business and avoid costly setbacks.

Mistake 3: Price Wisely or Pay the Price


Mistakes for Pricing on Amazon


Pricing your products competitively is a critical factor in your Amazon success. Overpricing can scare away customers, while underpricing can erode your profits. Here’s how to strike the right balance through competitive analysis:

Competitor Research

Study your competitors’ pricing strategies. What are they charging for similar products? Use this information to set a competitive price point.

Factor in Costs

Calculate your costs, including product sourcing, shipping, Amazon fees, and advertising expenses. Ensure your prices cover these costs and leave room for profit.

Dynamic Pricing

Consider using dynamic pricing tools to adjust your prices in real time based on market demand and competitor changes.

By pricing your products strategically, you’ll attract more customers and optimize your profit margins. And when we talk about profitability on Amazon, it’s worth noting that, according to Forbes,

“While Amazon did not disclose the operating income generated from their ad business, it is almost certainly bigger than the income generated by AWS, making the advertising business the most profitable segment of Amazon’s entire empire”

Mistake 4: Neglecting Customer Service – A Slippery Slope


Avoiding customer support on Amazon


Neglecting customer service can be a slippery slope that leads to poor reviews, lower sales, and a tarnished reputation. Here’s how to provide top-notch customer support:

Timely Responses

Respond promptly to customer inquiries, whether through Amazon’s messaging system or email. Customers appreciate quick answers to their questions.

Problem Resolution

Address customer issues and complaints professionally and promptly. Resolve problems to the customer’s satisfaction whenever possible.

Returns and Refunds

Have a clear and fair return policy. Be prepared to issue refunds or replacements when necessary because exceptional customer service can turn one-time buyers into loyal customers and brand advocates.

Mistake 5: Image Is Everything – The Power of Product Imaging and Listings


Image listing on Amazon


Your product’s appearance and how you present it in your listings can make or break your Amazon business. Here’s how to utilize the power of compelling visuals and listings:

Professional Photography

Invest in professional product photography to showcase your items in the best light. High-resolution images that clearly depict your product are essential.

Multiple Angles

Include multiple images from different angles to give customers a comprehensive view of the product. Highlight important features.


Use infographics to explain product features and benefits concisely. If you want to concise a long piece of content then you must target Infographics for they will help you a lot!

Compelling Product Descriptions

Craft detailed, informative, and accurate product descriptions. Highlight the product’s key features, specifications, and benefits.

Use Keywords

Incorporate relevant keywords naturally in your product titles and descriptions to improve search visibility. Your product listings are your digital storefront. Make them visually appealing and informative to entice potential buyers.

Mistake 6: The SEO & Keywords – A Missed Opportunity

SEO for Amazon


Neglecting search engine optimization (SEO) and keywords can be a missed opportunity to drive organic traffic to your Amazon listings. Do you want to learn how to make the most out of it? Keep on reading:

Keyword Research

Conduct comprehensive keyword research to identify relevant search terms related to your products. Tools like Amazon’s Keyword Tool can help.

Strategic Placement

Incorporate these keywords strategically into your product titles, descriptions, and backend search terms.

Monitor Performance

Keep an eye on your product’s search rank for specific keywords. Adjust your strategy as needed to improve visibility. So in short, by optimizing your product listings for search, you’ll increase your chances of being discovered by potential customers, ultimately leading to more sales and success.

As we have managed to cover all 6 mistakes made by newbies when it comes to starting a business on Amazon, how can we forget some expert advice mentioned by Tinuiti in its article, according to them:

“Don’t treat Amazon like eBay or Google. Amazon operates on a fundamentally different structure than either of those shopping sites. Be sure your store is capable of handling selling on Amazon, and that your strategy is aligned with Amazon policies- so you get the highest ROI on the Amazon Marketplace”

Final Verdict

Starting a business on Amazon may seem like the dream of a lifetime, but it’s not all sunshine and rainbows. In a world filled with ambitious entrepreneurs fueled by passion and endless dreams of making it big, only a select few manage to turn those dreams into reality.

In conclusion, your Amazon journey might not be a fairy tale, but with the right guidance and a dash of determination, you can turn your aspirations into reality. So, are you ready to embark on this exciting adventure? The choice is yours, and we suggest taking the first step by exploring the possibilities with e360Digital. Happy selling, and may your Amazon venture be a resounding success!

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