Major Issues | Amazon Seller Problems Facing By Newbies


Many companies thrive on Amazon, with the majority of their sales coming from this single source. But, on the other hand, Sellers do not have it simple, and they face numerous obstacles to survive and succeed on Amazon, the world’s largest e-commerce site.

Let’s Take about Amazon Seller Problems


Suspension of Account

Since Amazon wields so much control over third-party sellers, they are normally absolutely at Amazon’s mercy. They operate on the principle of ‘act first, ask questions later’ and can suspend your account without asking for an excuse for even minor non-compliance, errors, or rule violations. Most of the time, suspensions are warranted, but sometimes, a seller makes an honest mistake and is forced to pay a hefty suspension fee without knowing what they did wrong.

You no longer need to make several unsuccessful attempts to get your Amazon seller account restored. If your account is suspended, you can get it reinstated for free if you are an AMSA member.

A savage competition

On Amazon, there are no restrictions on the competition you will face in your line of business. As many sellers compete for higher exposure in the search results, the rivalry may be fierce.

It’s difficult for new sellers to break into a category when there’s a lot of competition. Furthermore, shoppers prefer existing brands with a strong brand identity and positive consumer feedback over new products. Therefore, it makes it more difficult for new sellers to compete against established sellers.

AMSA platform experts conduct a comprehensive study of Amazon marketing and include a complimentary report for analysis and assessment of existing campaigns and practices. It will also assist you in developing a more effective plan for ranking higher in search results.

Price Competition

Price reductions are common when there is a lot of rivalries. When one seller reduces their prices, the effect you can see by trickling down to other sellers, who in turn drop their prices to keep the market going. As a result, product margins are thinner, and profits are lower. Note; bookmark this page about amazon seller problems to solve your issues.

Feedback and Reviews from Sellers

Buyers should consider seller reviews and product recommendations when making purchasing decisions. The distinction between the two is critical for sellers. Many possible problems can occur if you sell via Amazon’s FBA program (Fulfilled by Amazon), such as seller reviews, which is meaningless to the seller since Amazon handles the fulfillment and shipping.

A poor seller profile will hamper a seller’s sales. Because of Amazon’s strict rules, it’s also impossible for sellers to get feedback for new products because they can’t reach out to buyers. Furthermore, several consumers wait until they have had a negative experience before leaving a comment.

Any new AMSA member is entitled to a free health check of their US Selling account. We’ve worked with all types of storefront profiles, particularly when it comes to account health. In addition, we offer you an honest assessment of where you stand about your peers on the forum.

The money is paid to the sellers every two weeks.

Sellers earn payment directly to their checking account every 14 days, according to Amazon’s policies. Furthermore, Amazon does not allow PayPal from customers, which may be an issue if vendors use sales money from other sites to purchase more inventory to sell on Amazon. Note; bookmark this page about amazon seller problems to solve your issues.

Tax Laws That Are Changing

Sales tax laws change far too much, and many states enact new legislation regularly. As a result, it’s almost impossible for a seller to remain on top of the laws in each of the 50 states. Historically, Amazon has put the burden of filing and paying sales taxes on third-party sellers. Still, some states now require Amazon to play a more active role, which may benefit third-party sellers.

Products that are restricted or unavailable for sale

Certain large manufacturers can determine that third-party sellers should not be allowed to sell their goods on Amazon. In such instances, Amazon reserves the right to declare these items limited at any time.

Final Verdict

At Folio3, I work as a Digital Marketer and Content Developer. Mobile app development, Blockchain app development, eCommerce, and custom software development are some of the topics I write about, like setting up an online shop in the UK and another country. With over three years of experience in digital marketing and content creation. Note; bookmark this page about amazon seller problems to solve your issues.

Read also: Utmost Guide | How Much Does It Cost to Start Affiliate Marketing?

FAQ: Amazon Seller Problems Facing By Newbies


How do I contact Amazon about a bad seller?

Report sales policy violations. 

  • Go to the scathing report.
  • Select the type of violation.
  • Write the details in the form.
  • Submit
  • To facilitate the investigation, the following information must describe your problem area as applicable.
  • In the case of communication method, verify your email and your number is correct.
  • Select send.

Why do Amazon sellers fail?

Burnout among Amazon sellers is a huge reason for failing in this business. You can start to get stronger and see some initial profits, but you can quickly figure out how much energy and effort are needed to maintain the same sales and profit margins.

What are the dangers of selling on Amazon?

5 Severe Amazon seller risks:

  • The only lucky ones out there have a grandfather account on Amazon.
  • Hidden Expenses You can say that hidden expenses are the biggest Amazon seller risk.
  • Inventory qualification. Speaking of which, your inventory can become useless overnight.
  • Account suspension.
  • Price wars.

What is the problem with Amazon?

One of the biggest cash flow challenges for new Amazon sellers, in general, is generating money to maintain inventory. Since Amazon pays third-party merchants every two weeks, you need to invest in maintaining your listing.

Can I report a seller to Amazon?

Amazon encourages sellers to report violations of Amazon’s policies or applicable laws. To report violations: Go to report violations. Select the breach report and then provide all relevant information to conduct the investigation.

Can you sue Amazon as a seller?

In California, if you are an individual, you can sue Amazon for a maximum of 10,000. If you are in the business of using Amazon, you can sue for a maximum of 000 5000. Using small claims, you agree to give more discounts than you can sue, even if you have a higher amount. Note; bookmark this page about amazon seller problems to solve your issues.

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