7 Things That Scare Amazon Sellers the Most

Halloween is here, and because it’s that time of year, we want to talk about spooky stuff. Not vampires, snakes, or things that go bump in the night, but things that scare Amazon sellers.

The Amazon Marketplace may offer sellers enormous potential for success, but it’s a VERY unpredictable place. In fact, many people think Amazon is downright scary.

Sellers have no control over changes that Amazon makes to its rules and fees, nor can they control other sellers.

Thankfully, we’re here to help.

We’ve found seven things that scare Amazon sellers the most so you know what to expect.

Even better, we have ideas of how you can best handle worst-case scenarios if they ever unfold.

Read on and learn how to protect yourself from the dark side of Amazon.

1. An increase in brand and product restrictions

Sellers are at Amazon’s mercy when it comes to changes in rules and product restrictions. So, when Amazon cracks down on brand restrictions right before Q4 holidays, sellers have to grin and bear it.

There’s really not much you can do to ready yourself for random changes out of nowhere.

The best strategy for dealing with unexpected Amazon product restrictions is to diversify what you sell. By expanding your offerings, you’ll hedge against Amazon doing something harmful to any income streams you rely on.

If you carry products from popular brands, there may be a higher chance that Amazon will place restrictions on it. So, make sure to balance your branded offerings with other items that are less likely to have future restrictions.

2. Unexpected fee changes

Like product and brand restrictions, Amazon fee changes often surprise sellers.

Consider the Q4 FBA fee changes that Amazon instituted in 2016. When Amazon announced that it was tripling monthly inventory storage fees in November and December, sellers had to scramble to adjust their holiday sales strategies.

Fees were also adjusted down for weight handling to offset these massive hikes. But, this also threw a kink into sellers’ plans, forcing them to rethink what to source.

Sellers can’t predict Amazon fee changes, but they can adopt practices to help them be prepared when they occur. Consider expanding to other sales channels — even Amazon FBA can help you with a multichannel strategy.

Selling on other marketplaces, or even through your own ecommerce site, can bolster your bottom line when Amazon fee raises cut into your profits.

3. Dealing with sales taxes

If you think Halloween is spooky, just wait until tax time rolls around.

Tax season seems to bring out the fear and panic in most people, so it’s naturally one of the things that scare Amazon sellers the most.

Taxes are even scarier for Amazon sellers because different rules exist for each state in which they sell.

Thankfully, there are resources for Amazon sellers about handling sales taxes and tools like TaxJar that can help.

If using a third-party tool can ease your burden of dealing with sales taxes, your peace of mind is worth the investment. Not to mention it could prevent you from getting penalized if you ever mess up or forget to collect taxes.

Which brings us to one of the most curious things that scare Amazon sellers…

4. Learning how to use new selling tools

You’d think that Amazon sellers would embrace learning how to use new tools and technologies. Especially because these tools exist to make their lives easier.

But, in most cases, you’d be dead wrong.

Very few sellers use third-party tools and software to streamline their operations compared to how many sell on Amazon without them.

And that’s strange because these tools were built to help sellers save time and make more money.

Peter Valley on the blog FBA Mastery had this to say about sellers who insist on “using primitive equipment and software because the alternative is too ‘expensive’”:

“You will get out of your business what you invest in it. Being concerned about minor investments with a virtually guaranteed multiple return will guarantee your business remains stagnant and small.”

That’s why it’s silly to be scared of tools and technology.

A small investment in time to learn how to use something properly can save you hours in the long run and pay for itself in no time.

The best way to combat the fear of learning new tools is to take advantage of free software trials. And, during your free trials, don’t be afraid to contact customer success and support teams with questions or for a walk-through.

After you master new tools or software, you’ll improve your workflow and have more time for work that tools can’t make easier.

5. Buyers with bad intentions

We don’t need to tell you that Amazon’s return policy can be a major burden on sellers. Especially when it comes to buyers “changing their minds” about a product they ordered.

It can be difficult to tell if a buyer is trying to scam you. That’s why it’s important to protect yourself in the event that someone does try to rip you off.

Some buyers will make a purchase with bad intentions from the beginning. People sometimes purchase items and then return older models in the same packaging, claiming they ordered the wrong thing or that they no longer wanted it.

Sellers have even had buyers return empty boxes claiming that that’s how the package arrived. This has led many sellers to take the precaution of taking photos or videos of themselves packing and sealing items. Having these “before” photos/videos can serve as proof that they shipped something if a bad buyer ever attempts this scam.

With clothing, there’s even a specific name for buyers who intend to wear something and then return it: Wardrobing.

If you sell clothes, you may want to discourage online wardrobing by using special tags that stand out. Potential wardrobers will be less compelled to wear clothing with big, tacky tags sticking out. Plus, you may be able to require buyers to have the tags attached to honor their request for a refund.

This won’t eliminate wardrobing from happening, but you better believe it will help cut it down.

6. Competing against knockoffs and counterfeit products

One of the scariest perils for Amazon sellers is having to compete against knockoffs and counterfeit products.

This Seller Central thread highlights the horror that can unfold when counterfeiters actually win.

Another thread in Seller Central discusses how Birkenstock had to quit Amazon due to counterfeiters.

It may sound hard to believe because Amazon has a strict anti-counterfeiting policy. But, this is an unfortunate reality about selling online these days.

Amazon sellers even have to worry about counterfeit reviews!

Worse yet, it seems that Amazon is passing on the cost of dealing with counterfeiters to legitimate sellers. (Yet another unexpected fee change…)

On top of asking Amazon sellers to pay a one-time, non-refundable fee of $1,500 for each special brand they want to sell, they must also supply paperwork proving they purchased at least 30 items from manufacturers or distributors within 90 days.

Clearly, this problem is on the rise, and sellers can only hope that Amazon gets it under control soon.

7. Getting suspended over a misunderstanding

When it comes to things that scare Amazon sellers, getting suspended over a misunderstanding ranks the highest.

The scariest part is that it happens more than you think. You can find detailed accounts of mysterious Amazon account suspensions that will scare you to your core.

All we can say to prepare you for something so terrible is to repeat our earlier advice: Diversify income streams!

Having multiple income streams and channels on which to sell products will bolster your business if Amazon ever suspends you.

Of course, no seller wants to imagine this worst-case scenario unfolding. But, if you’re ever in that position, you’ll feel comfort knowing you still have other spots in which to sell. 

Things that scare Amazon sellers: The bottom line

Surely, there are more things that scare Amazon sellers than the above. But these will give you a starting point for considering plans of action in case these situations ever unfold.

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