Amazon is a global aggregator where you can sell anything. Ukraine also has mini analogues of this platform, such as Prom, Rozetka, and Epicentr. But selling on Ukrainian platforms and on a global one brings a huge income difference. In fact, once you learn more about Amazon, an income of $5,000–10,000 will seem laughable to you.
At the beginning of your journey, you might misjudge the product, or not understand enough about product placement in categories. You might also make 10 serious mistakes that will block your path to becoming a successful Amazon entrepreneur. What are these mistakes and how can you avoid them? We explain in this article.
The site reaches hundreds of millions of users, each of whom can become your potential client. A few interesting statistics:
It’s quite difficult for beginners and startups to bring their products to the TOP and reach competitive profitability. Amazon sales are the result of painstaking work with your assortment, service, and promotion on the platform itself.
Let’s briefly describe typical mistakes made not only by beginners but also by experienced sellers, which decrease Amazon profits.
There are product groups that require many confirming certificates for manufacturing and product quality. For example: medical devices, medicines, food products, pet food, cosmetics, dietary supplements. If you plan to be a manufacturer, note that you can't just create and sell. But to develop, document, certify, obtain permits, find clients, and only then sell — yes, that’s all possible.
Also, remember that there may be restrictions on the marketplace itself. For example, in the U.S., products containing pesticides can only be sold by U.S. residents. So if you want to produce and sell goods internationally, find product categories that are available for sale worldwide.
As soon as you realize that your business is gaining momentum and sales are actively growing — register your business as a company. Conducting financial transactions as an individual is prohibited both in Ukraine and worldwide. Moreover, you may face hefty fines and risk shutting down early. Note that Amazon accounts have no concept of “individual entrepreneur.” The site allows sales either as an individual or a company. Why choose to be a company, not an individual? You can read how to register for Amazon here.
Example:
An individual earned $1,000. They’ll pay $180 in taxes. But if you are a company, you can first deduct all your expenses, then pay 15–20% tax on the profit. If your expenses from $1,000 are $600, your tax will be only $80.
You started selling a product, then found out it was already patented. As a result — you violate someone’s intellectual property, and someone angry is waiting for you in court or filing a complaint. Amazon blocks your profile. Business destroyed, you’re devastated. A patent check helps avoid these issues.
Even if it frustrates you that someone else already has and is selling the same product — the advantage still belongs to the pioneer. Amazon will refer the dispute to the trademark holder (the pioneer), who will either make a deal with you, allow you to sell under their brand for a %, or do everything possible to get Amazon to block your sales.
Amazon won't let you operate under the radar, so if you try to counterfeit goods or avoid paying platform fees — expect harsh consequences. Your account will be blocked, and you won’t be able to withdraw the earned money from the platform. Gray promotion methods — such as review manipulation or leaving fake negative reviews on competitors — are also quickly tracked and lead to blocked accounts, and your product may be disposed of.
Timely financial reporting and tax payments in other countries are key to successful and stress-free business operations. So check your tax number, send reports to it, and avoid penalties.
Don’t forget that for most Amazon buyers, international payments are problematic. Moreover, if your supplier is in Asia, China, or India, transaction fees can reach up to 7%. To avoid customer frustration and financial losses — find payment systems that allow you to receive Amazon payments without commission.
Selling products without understanding demand, competition, and potential profitability will leave you stuck with unsellable inventory. Therefore, conduct thorough market research before making any purchases. If you are unsure whether you can beat the competition, find another product.
Pay attention to what customers are saying, and address problems or improve your products. Sales on Amazon are heavily influenced by your rating, which is determined by your customers. Upon seeing a negative review, a potential buyer may decide not to take the risk and order from a competitor. That’s why fast delivery to Amazon’s European warehouses is crucial so the customer doesn’t have to wait.
Like any marketplace, Amazon requires high-quality product descriptions. You can optimize titles, add detailed specifications, and upload high-quality images. A well-optimized listing is key to attracting traffic and boosting sales.
Proper management helps prevent issues. There are two models:
In the first case, you have to manage inventory yourself, hire and train staff, and find storage space — but you don’t pay the platform. In the second case, Amazon takes care of logistics and storage, but it’s a paid service.
Delayed responses or failure to resolve issues lead to negative reviews. If there are many, your account may be suspended. High-quality support contributes to a positive reputation, so always provide customer-focused service.
To ensure Amazon sales generate good profits, it’s important to follow the platform’s rules and legal requirements. Naturally, it’s hard to keep track of all the details, which can lead to consequences. In this case, the best solution is to partner with an intermediary company like DiFFreight.
We specialize in logistics and customs clearance for Amazon sellers, so working with us will greatly simplify your operations and optimize your business:
In case of any issues with delivery or customs, contact us and we’ll quickly resolve the matter.
This is another way to boost your Amazon sales. Entrust us with delivery to the U.S.: we offer competitive rates, efficiency, and additional services. Moreover, we have our own warehouse in New Jersey where we handle fulfillment for marketplaces.
DiFFreight takes care of storage, packaging, and delivery to your customers. With us, you can efficiently use Amazon’s fulfillment program or manage your shipments independently.
Calculate all expenses and your product’s margin to bring your business into profit within 1–2 months of sales. Don’t forget to include logistics service costs. And as for the actual delivery — leave it to us. We know how to work with Amazon, as we offer FBA delivery, fulfillment warehouses, and can help you set up your logistics and successfully launch your business.
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