10 Most Expensive Mistakes New Amazon Sellers Make (and How to Avoid Them)
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 These “gurus” often push outdated methods or generic advice that no longer work in today’s market.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: Amazon frequently updates its policies on safety, compliance, and labeling. The latest guidelines are available on Amazon’s official policy page. What to do: 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: 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
Is Amazon Dropshipping Still Profitable in 2025?
Imagine starting your own online business today. You don’t need to touch any products, rent a warehouse, or spend thousands of dollars on inventory. That’s what Amazon dropshipping promises. This business idea still attracts many people each year. But here’s the big question: Is Amazon drop shipping still profitable in 2025? Or has it become too hard to succeed? In this blog, we’ll explain how Amazon dropshipping works today, how much money you can make, the real dangers involved, and better options for people who want to earn online. What Is Amazon Dropshipping? Amazon drop shipping lets you run a business without holding any inventory. Instead of storing products yourself, you simply list them on Amazon. When a customer places an order, you purchase the item from a third-party supplier, who then ships it directly to your customer’s doorstep. Check out this in-depth overview from Shopify to understand how the dropshipping model compares to others like FBA. On the surface, this setup looks easy. You don’t need a warehouse, and you never touch the product. However, you’re still responsible for everything—from listing the product correctly to delivering great customer service. Most importantly, Amazon requires you to present yourself, not your supplier, as the official seller. This means you must remove any supplier branding or packaging that might confuse the customer. It might sound like a hands-off model, but drop shipping on Amazon demands attention to detail and strict compliance with its rules. For more details, you can review Amazon’s official policy here. The Appeal of Amazon Dropshipping Many people still ask, “Is Amazon dropshipping worth it in 2025?” That’s because the model seems simple and affordable. New sellers like it because they don’t need a lot of money to start. They don’t have to rent a warehouse. They can run the business from home or anywhere. Also, YouTubers and influencers like Jordan Welch, Biaheza, and Sebastian Ghiorghiu make it look easy. They often call it “passive income.” But the truth is usually harder. Amazon Dropshipping Market Trends in 2025 Amazon still leads the eCommerce world in 2025. However, competition is much stronger now. According to Marketplace Pulse, as of 2025, Amazon hosts over 9.5 million total sellers worldwide, with more than 2.5 million currently active. Customers now expect lightning-fast shipping, competitive pricing, and top-tier service. To stay ahead, sellers are turning to AI-driven tools to manage pricing, run smarter ads, and automate stock tracking. The market continues to evolve quickly, and staying competitive takes more than just listing a product. Even small sellers need to offer a professional experience. That means drop shipping on Amazon today takes a lot more work and planning. To get ahead of the curve, check out Amazon FBA in 2025: Should You Still Start or Is It Too Late? Profit Margins: What the Numbers Say So, how much money can you really make with Amazon drop shipping? Most sellers earn a 10–15% profit on each sale. But after you include all the costs, the profit gets smaller. Amazon takes a fee of 8–15%. You also pay for shipping, returns, and ads. For example, if you sell a product for $30 and your supplier charges $25, you make $5. After Amazon fees and ads, you might even lose $1 per sale. In general, beginners earn only $100–$500 each month unless they grow their store fast. The Hidden Risks of Amazon Dropshipping At first, Amazon dropshipping might sound like a smart idea. But many risks can cause big problems. Amazon can suspend your account if you break the rules or ship late. Suppliers may send the wrong items or delay orders. You can’t check the product’s quality yourself. You might also get many returns or bad reviews. One mistake can shut down your account. Amazon’s Strict Dropshipping Policy Amazon permits drop shipping only if its guidelines are followed. You must present yourself as the seller on all documentation, remove any branding from your supplier, and handle customer service and returns. If you break any of these rules, Amazon can suspend your account right away. Once suspended, it’s very hard to get your account back. Even one small mistake, like your supplier using their own label, can cause a ban. Real Seller Experiences in 2025 Let’s hear what real sellers say in 2025. “I made $2,000 in one month, but lost my account over a late shipment.” – Reddit user. “Too many returns. I moved to wholesale instead.” – Amazon forum seller Some people do well at first. But many end up with problems they didn’t expect. Most beginners quit after facing account issues, supplier mistakes, or very low profits. You can find many stories like these in the r/FulfillmentByAmazon Reddit community, where real sellers share their experiences. The Bottom Line: Is It Worth It? Amazon dropshipping still works in 2025, but that doesn’t mean it’s a smart choice. It gives you a low-cost way to start and a business you can run from home. But it also brings very small profits, big risks of account bans, and no control over your products. Unless you build strong systems and work with top suppliers, it’s hard to grow this business. Better Alternatives in 2025 If you want to run a stable online business, consider better choices than Amazon dropshipping. For example, you can start Private Label (FBA) to build your brand and control quality. You can try Wholesale to buy in bulk and get better prices. Or open a Shopify Store and design your own brand. Print-on-Demand is great for artists. And Affiliate Marketing works if you don’t want to manage products at all. These models give you more freedom and better long-term results. To explore a smarter launch process, read 5 Powerful Steps to Launch a Winning Amazon Product. Amazon Dropshipping Isn’t Dead (But It’s Not Smart for Most) So, is Amazon dropshipping still profitable in 2025? Yes, but only for a few. For most people, it’s a hard path with low rewards. Amazon rules are strict,
