4 Major Challenges For Rookie Amazon Sellers

Amazon is a revolutionary opportunity for the average person to start a business from the comfort of their home. It’s possible to get going with a small budget and at a pace that fits your lifestyle. Also, Amazon makes it simple to reach potential customers at once by providing the necessary tools and infrastructure.

But, as with any other type of business, selling on Amazon comes with a lot of challenges that you need to prepare yourself for. You could be making mistakes that cap the rate of growth and potentially lead to failure. Familiarizing yourself with the major challenges of other sellers can help you avoid the same mistakes. 

Setting Up Your Amazon Business To Be Sold

Many Amazon sellers build their business without intending to sell it at a later date. However, some do because it results in a big payday in the future. It’s possible to receive a valuation that’s 3-5 times the previous year’s profit. 

However, to get offers to sell your business it needs to be set up correctly. Keeping the finances clean and organized helps. Doing this from the start is easier than making changes several months into business operations. Keep in mind, also, that the products you sell should not be a trend that might go out of fashion. Instead, buyers are looking for businesses with timeless products that will remain relevant for decades to come. 

Learn how to sell an Amazon business before starting and you’ll have a chance at a higher valuation in the future. Also, the guidance to correctly set up your business will help you grow at a faster rate. 

Cash Flow To Grow The Business

Most new Amazon sellers do not have huge cash reserves to throw money at the business when it’s needed. The typical seller will save up for months or years on their first product inventory and take it from there. However, Amazon is a cash-hungry business, because you must have inventory in stock to sell and make a profit. 

Part of the problem is that sellers receive the money from sales at a delay. It might take weeks before Amazon releases money into the seller’s account. Furthermore, most sellers are buying and reselling products from overseas. And if that is the route you’re taking, you have to account for the manufacturing and shipping time – usually a month for each. 

So, make sure you budget correctly when you’re starting your business. Solving cash flow issues is one of the biggest challenges at the start that gets easier with time. 

Standing Out From The Crowd

It is easy to research the competition in a given product category and source the same products that are already selling well. The challenge becomes how to stand out from the crowd so that you can attract more sales. 

Here are a few strategies that will help your products be different:

  • Pricing: Lowering the price might be the only way that you can gain an edge for some products. This option might be risky because, eventually, competitors can lower their prices too. But, you can consider offering coupons or free delivery in order to keep your customers interested.
  • Accessories: Consider adding free accessories that complement the product. It might be a better instruction manual or something that makes using the product easier. 
  • Packaging: Spending time and money developing your packaging contributes to a premium look. Make sure to highlight the high-quality packaging using photos. Customers love brands that go the extra distance to provide a better experience. 

Selecting The Right Product

Many Amazon sellers get stuck at the product selection stage. It can lead to delays that take months to overcome or not getting started at all. Luckily there are excellent product selection tools that you can use to find great opportunities. 

Also, new sellers believe that they must like the product or be an expert. In reality, you can successfully conquer a product category if there is a demand and you understand the needs of the buyer. Focus on sourcing high-quality products and creating a great product listing. The sales will follow – even if you have little prior knowledge about the product. 


It’s not a big deal if you are making mistakes as a rookie Amazon seller. Each mistake made is an opportunity to learn and grow. To recap, start by creating a setup that’s attractive to Amazon business buyers in the future. Also, secure funding to avoid cash flow problems and take steps to stand out from the crowd. 

So what are you waiting for? Put these newly learned tips into action to scale your Amazon business and grow it beyond your wildest dreams. 

Interesting Related Article: “The Importance of Accounting Software for Amazon Sellers”