Every day, people jump into Amazon hoping to strike gold. But most new Amazon sellers lose money before making their first sale. Don’t be one of them.
We’re about to break down the ten most costly mistakes new Amazon sellers make. These are based on real stories from Reddit and top Amazon experts. Some of them lost thousands. Others got banned before their first sale.
Read this guide before you invest your first dollar. You’ll save money, time, and avoid the biggest regrets.
1. Jumping In Without Research — or Trusting the Wrong “Guru”
“I followed every guru gimmick in the book… My main takeaway was not to follow a cookie-cutter scheme that promises a guaranteed revenue stream after following 5 easy steps. Amazon FBA is not passive income, it’s a full-time job, one I had nowhere near the time for.” – from the Reddit post “I lost nearly $8000 selling on Amazon FBA”
Many new Amazon sellers fall into the trap of buying expensive courses that promise overnight success. Some influencers make more money selling courses than selling products. These “gurus” often push outdated methods or generic advice that no longer work in today’s market.
If you don’t research properly, you’re starting your business blind. You’ll waste money on the wrong products, break Amazon’s rules, or mismanage your launch. That can cost you thousands or your entire account.
Instead of rushing in, use real data tools like Helium 10 or Jungle Scout. And always go to Amazon’s free Seller University. Learn from people who are still selling, not just talking.
2. Choosing the Wrong Product
If your product is seasonal, has too much competition, or nobody wants it, it won’t sell. That’s why picking the wrong item is a costly mistake. According to a survey, over 70% of failed sellers say poor product selection was their biggest mistake.
Many new Amazon sellers make this mistake by chasing trends or picking products they like personally. But Amazon is not about what you like; it’s about what the customer wants and is already buying. A trending product might look good today, but it loses steam by the time your inventory arrives.
Avoid chasing TikTok trends or “winning product” videos. These products often attract copycats and leave little room for profit. Choose something with steady demand, few strong competitors, and something that feels different, even if it’s small. Research product reviews, read Q&A sections, and look for what’s missing in the top sellers.
3. Overordering (or Underordering) Inventory
“But right now I am at a point where I don’t want to continue with Amazon, and FBA inventory and PPC ad fees are just too high.” – u/Adventurous-Jaguar97
“Running out of inventory. Which quickly happens if your listing takes off and you have long lead times.” – Reddit user
Buying too much inventory too soon is a mistake many new Amazon sellers regret. It’s easy to believe that your product will fly off the shelves. But if it doesn’t, you’ll get stuck paying monthly and long-term storage fees. That money could’ve gone into marketing or better product selection.
At the same time, ordering too little has its own problems. If you run out of stock, your listing loses momentum and drops in Amazon’s ranking. It can take weeks or months to recover your position.
Start smart. Try 100 to 300 units and watch how your sales go. Use that info to plan your next order. Track sales trends, use inventory forecasting tools, and never guess your reorder timing.
4. Ignoring Amazon’s Rules and Policies
New Amazon sellers often skip reading the rules. That’s risky. Amazon takes its policies very seriously, and breaking them (even by mistake) can lead to your account being flagged or shut down.
Common violations include:
- Dropshipping from platforms like Walmart or AliExpress, which violates Amazon’s “seller of record” rule
- Using misleading images or making false claims in product descriptions
- Ignoring updates in categories that have strict compliance rules, like supplements or toys
Amazon frequently updates its policies on safety, compliance, and labeling. The latest guidelines are available on Amazon’s official policy page.
What to do:
- Bookmark and regularly review Amazon’s policy pages
- Pay attention to Seller Central announcements.
- Ask questions in Amazon seller forums when in doubt.
Don’t assume the rules are flexible. Follow them closely to protect your account and avoid costly suspensions.
5. Poor Listing Optimization
Even if you have the best product, buyers won’t find it if your listing is bad. Poor titles, weak bullet points, and unhelpful descriptions can cause your product to get buried in Amazon’s search results.
Many new Amazon sellers underestimate how much a strong listing can improve conversion rates. Your listing should clearly explain the product’s benefits, not just its features.
Avoid this by using keyword tools like Helium 10 to find what customers are actually searching for. Write clear titles, bullet points, and descriptions that answer buyer questions and highlight what makes your product stand out. For a step-by-step walkthrough, check out this complete guide to optimizing your Amazon listing in 2025.
6. Weak Product Images and No Video
When shoppers scroll, they stop at what looks good. If your images are low quality or confusing, they’ll skip you.
Strong listings use:
- At least 7 photos
- Lifestyle images showing the product in use
- Simple infographics
Videos help, too. Even if they’re made on your phone. Show the product clearly and in action. Learn how to use video effectively in this guide to boosting Amazon sales with video.
7. Burning Cash on PPC Without a Strategy
Many new Amazon sellers run automatic ads with no plan. They spend more than they make, and often don’t even realize it until they’ve wasted hundreds.
Amazon PPC (Pay-Per-Click) is powerful, but only when you understand how to use it. If you don’t monitor your ACoS (Advertising Cost of Sales), you can lose money fast.
Instead, start with manual ads. Use low bids and a small daily budget. Watch your numbers every week. Look for good keywords, and cut the ones that cost too much. Tools like Amazon’s Campaign Manager or third-party options can help track your performance and suggest optimizations. Also, avoid common advertising traps many beginners fall into by reviewing the top PPC mistakes Amazon sellers make.
8. Not Building an External Traffic Funnel
Amazon controls your traffic. If ads become too expensive or your account gets flagged, you have no backup.
Many new Amazon sellers rely only on Amazon PPC. But smart sellers start thinking bigger by moving some of that traffic to a Shopify store. A Shopify site gives you more control over branding, customer relationships, and long-term profit.
Build your own audience and slowly guide traffic to your own store. Use Instagram, TikTok, or YouTube to show your product and link to your site. Add lead magnets like discount codes to build your email list. Use tools like ManyChat to capture customers early and nurture them off Amazon.
With a branded store, you’re no longer fully dependent on Amazon. You own the customer journey, and that’s a long-term win.
9. Ignoring Reviews and Customer Feedback
Bad reviews can kill your product. A few 1-star ratings can scare away potential buyers and lower your ranking in search. New Amazon sellers sometimes avoid reviews altogether, fearing bad news. But customer feedback is your best source of insight. It tells you what’s working and what’s not.
Always follow up with buyers using Amazon’s “Request a Review” tool. Fix problems quickly. Make sure your product is what you promise and more. Address negative feedback with empathy, and use it to improve your product, instructions, or packaging.
10. Underestimating the Real Costs of Selling
Amazon takes more than just a small cut. Many new Amazon sellers forget about fees like storage, labeling, FBA prep, returns, and long-term warehousing.
It’s easy to focus on your product’s selling price and ignore the backend. But if you ignore costs, you’ll price too low or, worse, think you’re making money when you’re not.
Many think selling a $30 product means making $20. But after everything, they might only keep $6–$8.
Use the FBA calculator before buying anything. Plan every cost, from shipping to ads to returns. It’s the only way to price confidently and profit long-term.
Most New Amazon Sellers Fail Because of These 10 Mistakes
These 10 mistakes are common. They’re also expensive. But you can avoid them. You don’t need to learn by losing money.
Focus on real numbers, clear branding, and giving customers a great experience. That’s what turns a first-time seller into a long-term brand.
Work with Brand Aventus to Launch the Right Way
At Brand Aventus, we help new Amazon sellers skip the trial and error.
Whether you’re just starting or already stuck, our team can help you with:
✅ Finding winning products that actually sell
✅ Writing strong listings with great images
✅ Running smart PPC ads from day one
✅ Staying compliant with Amazon’s rules
Book your free consultation now. Let’s build your Amazon business—the right way.
