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5 Myths about Selling on Amazon

Updated: May 12, 2023

There are a lot of myths about selling on Amazon, and what you should and should not do in order to be successful. But how do you know what information to believe or not believe? Our Product Specialists, who have years of experience as Amazon Sellers themselves, share 5 myths about selling on Amazon and the truth behind them. Check out our infographic listing these 5 myths about selling on Amazon by clicking here.

Myth #1

Amazon is taking away sales from third-party sellers.

In the first quarter of 2018, over 50% of sales were won by third-party sellers and not Amazon itself. There is a common misconception in the Amazon Seller community that Amazon uses the Buy Box in order to push out third-party sellers. Amazon Sellers need to use many tools and tactics to remain competitive on Amazon. Utilizing things like Amazon Sponsored Product Listings or Headline Ads, as well as consistently optimizing your product listings and prices, will make sure your products have the best chance of getting sales.

Myth #2

Lowest priced products always wins the Buy Box.

The Buy Box is designed to give Amazon customers the best shopping experience. Winning the Buy Box takes more than just the lowest price. Sellers that are reliable and meet performance standards will be more likely to win the Buy Box. A few of the things that Amazon’s algorithm considers when putting sellers in the Buy Box are Order Defect Rate, time and experience selling on Amazon, and customer shopping experience (speed of delivery, shipping options, price, FBA participation, etc.). Negative feedback can also impact your chances of winning the Buy Box. You can find out about getting negative feedback removed in this blog post.

Myth #3

5-star reviews are most important.

While you certainly want to get as many 5-star reviews as possible, Amazon customers care more about the total number of reviews rather than the overall rating. Sellers should find creative ways to request that customers leave product reviews. For example, include inserts in packaging reminding customers to leave reviews, send follow-up emails to customers after a purchase is made to ask for a review (and to give them the opportunity to address any concerns with you directly), and staying on top of questions on your product pages.

Myth #4

If your first product doesn’t sell well, that means Amazon Private Label selling doesn’t work.

Product ideas aren’t always big winners. There are numerous reasons why a product may not be successful in Amazon Private Label. The seller may have not done proper research to fully understand the chances of success for a new product launching in a particular market. The market the product was launched in may be too crowded for the product to be successful. The seller may also have tried to take shortcuts and ignored best practices that may have resulted in the failure of the new product. This is why it’s important to do as much research as possible when considering the launch of a new product. Thorough research will increase the likelihood of a seller selecting a product that will be successful.

Myth #5

All sellers should use Fulfillment by Amazon (FBA).

For those sellers that don’t have warehouse space to store products waiting to be sold or a shipping department to handle packing and shipping products as they’re sold, FBA automates the storage, packing and shipping process. While it may seem like the obvious choice for sellers, each seller should take careful consideration as to whether it’s the right choice for their business. The fees of the FBA program can be complicated and confusing. These fees can slowly chip away at even an otherwise successful business. Therefore, it’s important to compare the options before making a decision on a fulfillment option.

Myths about selling on Amazon can cause unnecessary headaches for Amazon Sellers.

It’s always important to do diligent research in order to thoroughly vet information you’re considering acting upon for your Amazon business. You don’t want to fall prey to a common misconception that could end up costing you sales in the long run.

While Sellozo’s platform helps Amazon Sellers automate and optimize their ads on Amazon, our Product Specialists use their experience selling on Amazon to help customers in all aspects of their Amazon business. They’ll help you avoid getting caught up in myths about selling on Amazon and keep your Amazon business optimized and as profitable as possible. Click here to schedule a call with one of our Product Specialists today!

Try Sellozo!

Sellozo offers a simple, powerful platform that makes it easy to manage and optimize your Amazon Sponsored Product Ads and – thanks to machine-learning – programmatically alters bids to help your ads beat out the competition.

Check out our recent post on Misconceptions About Selling on Amazon!


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