Product research is the foundation of a successful Amazon business. But as a new seller, it’s easy to make mistakes that can cost you time, money, and opportunities.
In this blog, we’ll break down the top 10 product research mistakes new Amazon sellers make—and how to avoid them. Whether you’re just starting out or looking to refine your strategy, these tips will help you make smarter decisions and set your business up for success.
1. Chasing High-Demand, High-Competition Products
The Mistake
Jumping into crowded niches dominated by big brands and established sellers.
Why It’s a Problem
High competition makes it difficult to stand out, and you’ll likely end up in price wars with slim profit margins.
The Fix
Look for products with moderate demand and lower competition. Use tools like Jungle Scout or Helium 10 to identify niches where you can carve out a space.
2. Ignoring Profit Margins
The Mistake
Focusing solely on sales volume without considering profitability.
Why It’s a Problem
Low margins mean you’re working harder for less return.
The Fix
Calculate total costs (product, shipping, Amazon fees) and aim for a profit margin of 30-50% after all expenses.
3. Choosing Seasonal Products
The Mistake
Selling items that only sell during specific times of the year.
Why It’s a Problem
Seasonal products can leave you with unsold inventory for months, tying up your capital.
The Fix
Focus on evergreen products that sell consistently year-round.
4. Overlooking Amazon FBA Fees
The Mistake
Not accounting for FBA fees when selecting products.
Why It’s a Problem
Large or heavy products come with high FBA fees, which can eat into your profits.
The Fix
Understand Amazon’s fee structure and choose products that are lightweight and compact to minimize costs.
5. Skipping Competitor Reviews
The Mistake
Ignoring what customers are saying about competing products.
Why It’s a Problem
You miss out on valuable insights into customer pain points and opportunities for improvement.
The Fix
Analyze negative reviews of competitors to identify gaps and create a better version of the product.
6. Trusting Gut Feelings Over Data
The Mistake
Relying on intuition instead of data-driven research.
Why It’s a Problem
Gut feelings can lead to poor decisions and wasted resources.
The Fix
Use tools like Jungle Scout, Helium 10, or AMZScout to validate demand, competition, and profitability.
7. Lack of Product Differentiation
The Mistake
Selling generic products that are identical to competitors.
Why It’s a Problem
Generic products lead to price wars and low margins.
The Fix
Differentiate your product with added features, better packaging, or unique bundles.
8. Entering Oversaturated Markets
The Mistake
Choosing niches with too many sellers and reviews.
Why It’s a Problem
Oversaturated markets make it hard to gain traction and visibility.
The Fix
Look for sub-niches with room to grow and fewer competitors.
9. Not Vetting Suppliers Properly
The Mistake
Committing to bulk purchases without testing suppliers.
Why It’s a Problem
Poor-quality products or unreliable suppliers can harm your reputation and lead to returns.
The Fix
Test suppliers with small orders first to ensure product quality and reliability.
10. Ignoring Amazon’s Restricted Policies
The Mistake
Listing products without checking Amazon’s restricted categories or policies.
Why It’s a Problem
You risk listing violations, account suspension, or even legal issues.
The Fix
Familiarize yourself with Amazon’s restricted products and category requirements before listing.
Avoiding these common product research mistakes can save you time, money, and headaches as a new Amazon seller.
By focusing on data-driven decisions, profitability, and differentiation, you’ll set yourself up for long-term success.
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