Navigating the Amazon marketplace can be challenging, and even seasoned sellers sometimes fall into common traps. If you’re serious about optimizing your Amazon business and maximizing profitability, it’s crucial to avoid these six mistakes that continue to plague many sellers.

1️⃣ Review Request Software and Inserts

Many sellers still rely on review request software and insert cards in their packaging, hoping to boost their review count. However, this approach often yields disappointing results. Amazon already sends out review requests to buyers, making additional requests redundant. Moreover, the language allowed in inserts is now extremely limited to avoid violating Amazon’s Terms of Service. Focusing solely on increasing review volume is less important than you might think. Instead, concentrate on providing excellent customer service and product quality to naturally garner positive reviews.

2️⃣ Repricing Software

Using repricing software to compete for the Buy Box can lead to a downward spiral of ever-lower prices, eroding your profit margins. The pursuit of the Buy Box at any cost isn’t always the best strategy. Instead of engaging in a race to the bottom, consider implementing velocity pricing models. These models allow you to adjust prices based on sales velocity and other factors, maintaining healthier margins while still staying competitive.

3️⃣ Using Non-Owned Barcodes

Some sellers opt to purchase cheap barcodes from third-party sources or other GS1 prefix holders. This practice can be risky and undermine your listing’s stability. If a brand decides to reclaim their barcode, your ASIN could be at risk. It’s essential to use barcodes you own and manage them properly to avoid potential disruptions and ensure long-term stability for your listings.

4️⃣ Relying on Amazon’s Public FBA Calculators

Amazon provides public FBA calculators to estimate profitability, but these tools are often not precise. For a more accurate picture of your margins, use an internal margin calculator. This approach involves working backwards from your transaction reports, which helps identify discrepancies and ensures you have a clear understanding of your true costs. If you don’t have a dedicated tool, consider consulting with services that offer updated calculators to stay on top of your financials.

5️⃣ Ignoring TACOS and Return Rates

Many sellers fail to account for TACOS (Total Advertising Cost of Sale) and return rates when calculating profitability. Advertising can significantly impact organic sales and rankings, making it essential to factor TACOS into your performance metrics. Additionally, high return rates can erode profitability, so it’s crucial to monitor these metrics closely and adjust your strategy accordingly.

6️⃣ Making Knee-Jerk Reactions to Early Data

One of the biggest mistakes sellers make is reacting to short-term data. Decisions based on just a few days’ worth of information can lead to misguided changes and missed opportunities. Instead, analyze data over longer periods—ideally 30 days or more—to make informed decisions. This approach helps ensure that your strategy is based on comprehensive insights rather than fleeting trends.

Conclusion

Avoiding these common pitfalls can help you streamline your operations and improve your Amazon business’s performance. From rethinking your approach to review requests and repricing to adopting better barcode practices and profitability calculations, these changes can make a significant difference. Remember, success on Amazon often requires patience and careful analysis, so resist the urge to make hasty decisions based on limited data.

What other mistakes do you think Amazon sellers should avoid? Share your thoughts and experiences in the comments below!