Common Mistakes Brands Make on Amazon (And How to Avoid Them)

Selling on Amazon can seem like a straightforward way to reach millions of customers, but it’s also a competitive and complex marketplace. Many new and even experienced sellers make avoidable mistakes that can hinder their success. These mistakes can lead to lost sales, poor customer reviews, and even account suspensions. In this article, we’ll cover some of the most common pitfalls brands make on Amazon and provide actionable strategies to avoid them.

1. Ignoring the Importance of Product Listings

One of the biggest mistakes brands make on Amazon is not investing enough time and effort into optimizing their product listings. Your product listing is your storefront—it’s the first thing customers see, and it determines whether they will click “Add to Cart” or scroll past.

How to Avoid It:

• Use High-Quality Images: Product images are critical for conversions. Amazon allows up to nine images, and you should use all of them. Show your product from multiple angles and in different contexts, and make sure your main image follows Amazon’s guidelines (e.g., a white background).
• Write clear, compelling titles and descriptions. Your product title should include relevant keywords but also be clear and readable. In your descriptions, focus on the benefits of the product and how it will solve a customer’s problem. Avoid jargon and make your listing easy to scan.
• Bullet Points and Key Features: Use bullet points to highlight key features and benefits. Keep them concise and clear, focusing on what sets your product apart from competitors.

2. Not Using Amazon’s Advertising Tools Effectively

Amazon offers several advertising options to help increase product visibility, but many brands fail to leverage them properly. Whether it’s sponsored products, sponsored brands, or Amazon DSP (demand side platform), paid ads can significantly boost your sales—but only if used correctly.

How to Avoid It:

• Start with Sponsored Products Ads: These ads are the easiest to set up and can help your product appear at the top of search results. Set up automatic campaigns initially to let Amazon's algorithm determine the best keywords for your product. Over time, refine your targeting with manual campaigns.
• Monitor and adjust campaigns regularly.  Advertising on Amazon is not a set-it-and-forget-it task. Regularly check the performance of your campaigns and adjust your budget, bids, and keywords based on what’s working and what’s not.
• Use Negative Keywords: Avoid wasting ad spend by excluding irrelevant search terms. Negative keywords prevent your ads from showing up for searches that aren’t likely to convert.

3. Ignoring Customer Reviews and Feedback

Customer reviews play a crucial role in your product’s success on Amazon. Not only do they impact your product’s ranking, but they also influence a buyer’s decision-making process. A lack of customer engagement with reviews can lead to missed opportunities for growth and improvement.

How to Avoid It:

• Respond to Reviews: Whether it’s a positive or negative review, always take the time to respond. Thank customers for positive feedback and address concerns in negative reviews professionally. This shows that you care about your customers and are committed to resolving issues.
• Encourage Reviews Ethically: Amazon has strict policies regarding how you ask for reviews, but encouraging satisfied customers to leave a review is important. Use Amazon’s “Request a Review” button in the order management section and consider sending follow-up emails (within Amazon’s guidelines) to customers asking for feedback.
• Learn from Feedback: Use reviews to identify patterns and areas for improvement. If multiple customers mention the same issue, make the necessary adjustments to your product or listing.

4. Underestimating the Importance of Inventory Management

Running out of stock on Amazon is one of the fastest ways to lose your ranking and sales momentum. On the flip side, overstocking can result in high storage fees and unnecessary capital tied up in inventory. Many sellers either ignore inventory management or don’t take the time to refine their strategy.

How to Avoid It:

• Use Amazon’s Inventory Management Tools: Amazon provides tools like the “Inventory Performance Index” (IPI) to help you monitor and optimize your stock levels. Keeping your IPI score high helps avoid long-term storage fees and ensures that your inventory levels are aligned with demand.
• Plan for Seasonal Fluctuations: If your product is seasonal, plan ahead for busy periods like the holidays. Order inventory in advance to ensure you don’t run out of stock at the most critical times.
• Monitor Sales Velocity: Keep track of how fast your products are selling. This will help you make data-driven decisions about restocking and avoid costly stockouts.

5. Failing to Price Competitively

Pricing is a delicate balance on Amazon. Set your price too high, and you’ll lose customers to competitors. Set it too low, and you may end up sacrificing your margins or seeming less reputable. Many brands fail to monitor and adjust their pricing regularly, leaving money on the table or hurting their competitiveness.

How to Avoid It:

• Monitor competitor pricing: Keep an eye on what your competitors are charging and adjust accordingly. If your price is much higher or lower than theirs, customers will likely notice and may decide to buy from a competitor.
• Consider Amazon Fees: Don’t forget to factor in Amazon’s selling fees when setting your price. Ensure you’re pricing your product in a way that allows you to maintain healthy profit margins.
• Experiment with Discounts and Promotions: Amazon’s promotion tools, such as lightning deals or coupons, can help drive traffic to your listings and boost conversions. Experiment with these to find the most effective pricing strategy.

6. Neglecting Amazon’s Rules and Guidelines

Amazon has a strict set of policies, and failing to adhere to them can lead to penalties or account suspension. Many brands overlook or misunderstand Amazon’s rules, especially regarding product listings, customer communications, and returns.

How to Avoid It:

• Stay Informed About Amazon’s Policies: Familiarize yourself with Amazon’s guidelines on product listings, advertising, and customer communication. Regularly review Amazon’s Seller Central to stay up to date on policy changes.
• Avoid Policy Violations: Be cautious when engaging with customers outside of Amazon’s system, offering incentives for reviews, or misrepresenting your products in listings. Violations can lead to account suspensions or listing removals.

Selling on Amazon presents incredible opportunities but also a unique set of challenges. By avoiding these common mistakes and applying the right strategies, you can build a strong and successful brand on the platform. Remember, success on Amazon is not just about having a great product—it’s about how you present that product, engage with customers, manage your inventory, and optimize your listings. By staying vigilant and proactive, your brand can thrive in this competitive marketplace.