5 Common Mistakes to Avoid When Starting on Amazon

Starting an Amazon FBA business is an exciting venture, but it's filled with potential pitfalls. By learning from the common mistakes of others, you can set yourself up for a much smoother launch and a faster path to profitability.

1. Inadequate Product Research

Many new sellers fall in love with a product idea without validating its market demand, competition, and profitability. Don't let this be you.

• Solution: Use product research tools (like Jungle Scout or Helium 10), analyze sales data, check keyword search volume, and calculate your potential profit margins after all Amazon fees.

2. Ignoring Listing Optimization (SEO)

You can have the best product in the world, but if customers can't find it, you won't make any sales. A poorly optimized listing is a recipe for failure.

• Solution: Invest time in keyword research. Craft a compelling, keyword-rich title, bullet points, and description. Use high-quality images and consider A+ Content once you have Brand Registry.

3. Neglecting PPC and Launch Strategy

Simply listing your product isn't enough. The "if you build it, they will come" mentality doesn't work on Amazon. You need a proactive launch strategy to gain initial sales velocity and ranking.

• Solution: Plan to run Amazon PPC (Pay-Per-Click) campaigns from day one. Start with automatic campaigns to discover keywords, then move to manual campaigns for better control and ROI.

4. Setting Up Your Business Incorrectly

Operating as a sole proprietor without a proper legal structure like an LLC can put your personal assets at risk. Incorrectly setting up your Amazon account can also lead to suspensions.

• Solution: Form an LLC to protect your personal assets. Ensure all your verification documents match your account details exactly. This is where a professional service can save you massive headaches.

5. Poor Inventory Management

Running out of stock is a sales killer. It not only means lost revenue but also a drop in your Best Seller Rank (BSR), which can be hard to recover. Conversely, over-ordering can lead to crippling storage fees.

• Solution: Monitor your sales velocity closely and plan your reorders well in advance, accounting for manufacturing and shipping lead times. Use inventory management software as you scale.