The 4 Crucial Mistakes Most Amazon Sellers Make (And How To Avoid Them)
Starting and scaling an Amazon business can be a challenging yet highly rewarding journey. Over the last four years of coaching 491 students to build successful Amazon businesses, I've seen many common mistakes that can derail new sellers. In this article, I’ll walk you through the four most crucial mistakes to avoid if you want to build a profitable Amazon business.
I’m Shayne Cannell-Cohen, an Amazon expert with my own personal dropshipping store that reached over $3 million in 2024. I’m currently helping 491 other people do the exact same thing, and now, I’m sharing the essential strategies with you.
Key Takeaways
Patience is key. Many Amazon sellers quit too early before they see exponential growth.
Diversifying your product range allows you to increase your chances of success by reaching more customers.
Celebrating small wins keeps your momentum going and helps you stay motivated on the road to your bigger goals.
Focus on the key levers such as account health, inventory management, and repricing to maximize your success.
Table of Contents
Introduction
Key Takeaways
No Patience: The First Crucial Mistake
The Snowball Effect and Its Impact
Not Diversifying: The Second Crucial Mistake
Forgetting To Celebrate Small Wins: The Third Crucial Mistake
Ignoring Key Levers: The Fourth Crucial Mistake
Conclusion
No Patience: The First Crucial Mistake
Many beginners in the Amazon business space often lack patience, which is one of the most common mistakes I see. New sellers typically start listing products on Amazon, but as soon as they don’t see immediate results, they lose confidence and quit. What they fail to realize is that this moment is often the breaking point right before their breakthrough.
Let’s picture a graph where we track the number of products listed on the vertical axis and the passage of time on the horizontal axis. In the beginning, you might list a few products and see minimal results. However, as time goes on and you list more products, you eventually hit a “ceiling,” which represents the moment when you make your first sale. This first sale signals exponential growth—what we call the Snowball Effect.
The Snowball Effect and Its Impact
But this is where many Amazon sellers miss the mark: they give up just before they experience the growth that’s waiting for them. The Snowball Effect is real, and it happens when you make that first sale and the Amazon algorithm starts recognizing that your store is legitimate. The algorithm then boosts your visibility in the marketplace, which results in even more sales. The more sales you make, the more the algorithm pushes you to the front, creating a cycle of growth that accelerates over time.
One great example of the Snowball Effect is the story of Amazon itself.
When Jeff Bezos first started Amazon, it was simply an online bookstore. For years, Amazon struggled to grow and faced immense competition. But once they started gaining traction with books, the company expanded to other product categories. As Amazon began selling more and more products, the platform gained more customers and visibility. This exponential growth, powered by a snowball effect, helped Amazon transform from a small online retailer to the global e-commerce giant we know today. The key to their success was not only having the right products but also staying patient and allowing the Snowball Effect to do its work.
The same concept applies to your Amazon business. Once you make your first sale, the Snowball Effect begins, and the algorithm will start working in your favor, driving even more sales and visibility.
Not Diversifying: The Second Crucial Mistake
Another huge mistake is failing to diversify your product range. Some new sellers make the mistake of focusing on one product category, which severely limits their potential for growth. The more products you list, the more chances you have to make a sale.
Think of it like this: if it's raining and you only have one bucket to collect rainwater, you're only going to catch a limited amount. But if you set out multiple buckets, you're going to collect more water faster. The same principle applies to your Amazon business—list a variety of products across different categories to increase your chances of making a sale.
Forgetting To Celebrate Small Wins: The Third Crucial Mistake
When you're starting an Amazon business, it’s easy to get discouraged if you're focused only on big goals like reaching $10K per month in sales. But celebrating small wins along the way is essential for maintaining motivation.
For example, celebrating milestones like registering your Amazon business, listing your first product, or making your first sale are all important steps. Each of these small wins is a step closer to your ultimate goal, and acknowledging them keeps you on track and energized to continue.
Ignoring Key Levers: The Fourth Crucial Mistake
To achieve success with your Amazon business, you need to focus on four key levers beyond product research:
Account Health: Maintain a strong account reputation by ensuring you meet Amazon’s performance metrics.
Order Defect Rate (ODR): Percentage of orders with issues (negative feedback, claims, chargebacks).
Pre-Fulfillment Cancel Rate (PFCR): Percentage of orders canceled by the seller before shipment.
Late Shipment Rate (LSR): Percentage of orders shipped late.
Valid Tracking Rate (VTR): Percentage of orders with valid tracking numbers provided.
Customer Feedback Rating: Average rating from customers based on their experience with your service and product.
A-to-z Guarantee Claims: Claims filed by customers when orders don’t arrive or are defective.
Return Rate: Percentage of items returned by customers.
Inventory Management: Ensure you’re consistently reviewing your inventory and offering a wide range of products.
Repricing: Use repricing strategies to stay competitive in the marketplace.
Product Research: Continuously analyze and add profitable products to your inventory.
By paying attention to these areas, you can ensure that your Amazon business remains sustainable and profitable in the long term.
Conclusion
Starting and growing an Amazon business takes time, patience, and strategy. By avoiding common mistakes like lack of patience, failure to diversify, neglecting small wins, and not focusing on the key levers, you can set yourself up for success. Keep pushing forward, and remember that your breakthrough could be just around the corner.
Ready to take your Amazon business to the next level?
Follow me on Facebook, Instagram, and YouTube for exclusive tips, strategies, and behind-the-scenes insights!
Don’t miss out on the opportunity to join my mentorship program and unlock your path to success—let's build your thriving business together!
