3 Rookie Mistakes Amazon Sellers Should Avoid (And What to Do Instead)
Building a successful Amazon business sounds exciting, but the road to "bestseller" status is riddled with mistakes. Luckily for you, Ali and Zamir, This Way Up founders, are here to save you from tripping over the same hurdles they faced when they first started selling on Amazon.
Drawing from over 20 years of experience, they unpacked some hard-earned lessons in their latest podcast episode, sharing their rookie errors (listen on Spotify, Apple, Amazon) so you don’t repeat them.
Here’s the lowdown on what they learned and, more importantly, what you can do differently.
1. Test the Waters Before Diving Into New Markets
When you’ve nailed it in one market, it’s tempting to scale big and fast into others. Zamir learned the hard way when he shipped 10,000 Bluetooth speakers into the U.S. market, fresh off the success they had in Europe. What worked in densely packed European homes didn’t fly with U.S. consumers, who often live in larger houses where Wi-Fi speakers are king.
Selling products that didn’t align with the local preferences meant plummeting review scores and lost sales.
Key takeaway
Always test your product in new markets with micro shipments first. Launching small provides valuable insights and minimises potential financial losses.
By dipping your toes in, you’ll be better prepared for differences in consumer behaviour, cultural preferences, or technical needs.
2. Invest in Packaging Like Big Brands Do
Packaging isn’t just about aesthetics - it’s about protecting your product, providing a great unboxing experience, and saving money from costly damages. Ali’s jars of coconut oil arrived smashed far too often when shipped in Amazon’s standard packaging.
The result? Dissatisfied customers, expensive replacements, and loss of profits. Inspired by giants like Apple, who treat their packaging like a work of art, he completely overhauled the presentation and durability of his product packaging.
Key takeaway
Don’t skimp on packaging, even if it costs extra upfront. Sturdy, custom designs can prevent products from breaking during transit, save replacement costs, and even enhance your brand’s reputation.
Ali’s test? Throw a packaged item against a wall - if it survives, it’s ready to ship.
3. Know the Difference Between Vendor and Marketplace Programs
Getting invited to the Amazon Vendor Program sounds like hitting the jackpot, right? That’s what Ali and Zamir thought. But while it works for some brands, it wasn't a fit for theirs.
With Vendor, Amazon buys your stock outright and takes control of pricing, promotions, and inventory. For Ali, this meant razor-thin margins and losing all flexibility. Zamir, on the other hand, heeded his instincts and avoided making the same mistake.
Key takeaway
Vendor and Marketplace programs come with big differences. Marketplace (3P) lets you stay in control of your pricing, promotions, and branding - it’s like an extension of your website.
Vendor (1P), however, shifts control to Amazon, which may not benefit small to medium businesses. Read the fine print and weigh the pros and cons before committing.
Lessons You Can't Afford to Miss
Rookie mistakes are inevitable, but as Ali and Zamir prove, they’re also the best teachers. Here’s the recap:
Test before committing big shipments.
Invest in unbreakable, customer-delighting packaging.
Know your program options and their implications.
By avoiding these pitfalls, you’re already one step ahead of the competition. But there’s so much more to learn from Ali and Zamir’s stories! Tune in to The Upside podcast and get the full scoop on their selling missteps, plus part two of their rookie mistake series.
Whilst you’re in a subscribing mood, sign up for the This Way Up email newsletter to never miss an update - your future self (and profits) will thank you!