5 Critical Mistakes Amazon Resellers Should Avoid

Reselling on Amazon can be a lucrative business, but it comes with its own set of unique challenges that can quickly derail your success. Many resellers are unaware that minor mistakes in sourcing, authenticity, and compliance can result in sudden listing removals, account suspensions, or even permanent bans. The consequences can be costly and sometimes impossible to reverse.

This video will focus specifically on the most common mistakes made by Amazon resellers. But if you’re also involved in private label selling, don’t miss our other blog article: 5 Critical Mistakes to Avoid as a Private Label Seller on Amazon. It covers essential tips for brand owners and complements what you’ll learn here.

Our team at Cabilly & Co. has worked extensively with Amazon resellers and seen exactly where things go wrong. In this article, we’ll walk you through five crucial mistakes every reseller should avoid if you want to protect your account and build a reliable, long-term business on Amazon.

Read on to learn how to stay one step ahead in the reselling game.

1. Never Blindly Trust Your Supplier or Distributor

One of the biggest traps Amazon resellers fall into is the misconception that if they can buy a product, they can sell it without difficulty. Unfortunately, that’s not how Amazon works. The platform has strict rules to protect brands and ensure product authenticity. If you sell restricted items or can’t prove your products are genuine, you risk having your listings taken down, facing intellectual property complaints, or even losing your entire account.

Verifying your inventory’s legitimacy isn’t optional; it’s a must. Amazon will request proof, and if you’re not prepared, it could cost you everything.

Before you buy, here’s what to double-check:

• Authorized distributors only: Many brands forbid third-party sellers. Using unauthorized suppliers puts you at risk of IP complaints and Amazon enforcement.
• Get detailed invoices: Generic receipts won’t cut it. Amazon demands clear, itemized proof of purchase.
• Know the supply chain: If your supplier can’t or won’t reveal where products come from, you could be dealing with gray-market goods, a fast track to trouble on Amazon.

Too many sellers skip these checks, resulting in frozen funds and inventory they can’t sell. Remember, chasing the cheapest deal isn’t worth it if it threatens your business. Prioritize authenticity and transparency to keep your store safe and thriving.

2. Never List Products Without Ensuring Compliance with Amazon’s Rules

It’s tempting to think that if other sellers are offering a product, it’s safe for you to sell, too. But on Amazon, appearances can be deceiving. Listing a product without fully understanding Amazon’s rules can lead to sudden, severe consequences.

Many products are restricted or require special approvals and compliance documents, such as safety certifications. Ignoring these requirements isn’t just risky, it can result in your listing being taken down without warning, your account being suspended, or your inventory being destroyed.

Before you hit “publish” on any product, take the time to check Amazon’s restricted products list and secure all necessary approvals. This extra step may feel like a hassle, but it can save you from costly disruptions and protect your reputation as a reseller.

Don’t let an avoidable compliance slip-up wipe out your hard work,  be proactive and stay ahead of Amazon’s rules.

3. Never Violate Listing and ASIN Creation Guidelines

Amazon’s rules for product listings are strict, and for good reason. Break them, and you could face ASIN suppression, suspension, or even a complete account shutdown. Fixing these problems isn’t quick either; it can take weeks or even months, costing you sales and trust.

To keep your listings safe and your account in good standing, follow these key rules:

• Be accurate and honest: Your product descriptions must exactly match the item’s materials, size, and features. No exaggerations, no fluff.
• Use clear, truthful images: Misleading or heavily edited photos will put you on Amazon’s radar.
• Avoid banned words: Terms like “FDA approved” or “guaranteed results” are off-limits, especially in health and wellness categories.
• Never make false claims: Amazon takes truth in advertising seriously, misleading customers is a fast track to penalties.

Make it a routine to review Amazon’s current listing guidelines before uploading every product. Staying compliant isn’t just smart, it’s essential to keep your business running smoothly.

4. Never Use Listing Content That Isn’t Yours

Cutting corners by copying images, descriptions, or brand names might seem like an easy shortcut. Still, it’s one of the fastest ways to get hit with intellectual property complaints, and get your listings removed or your account suspended.

Here’s what to avoid at all costs:

• Stealing copyrighted images: Taking photos from other sellers’ or brand websites without permission is a violation of copyright law.
• Copying product descriptions: Amazon’s content is protected, and duplicating another seller’s text can lead to severe penalties.
• Listing under brands without approval: Many brands don’t allow third-party sellers. Listing without explicit permission exposes you to potential trademark and copyright complaints.

Using someone else’s content may seem harmless, but it puts your entire business at risk. Protect your account by creating your original listings and securing the proper permissions. It’s not just about following the rules, it’s about respecting other people’s work and building trust with your customers.

5. Never Operate Multiple Seller Accounts Without Amazon’s Approval

Trying to run multiple Amazon seller accounts without explicit permission is a risky move that often backfires. Amazon’s policy is clear: one seller account per business, period. Some sellers think they can outsmart the system by opening extra accounts to separate brands, avoid suspensions, or test new products. However, Amazon’s advanced monitoring tools track connections between accounts through IP addresses, payment info, devices, and more.

If Amazon catches you operating multiple accounts without approval, the consequences are severe and swift:

• All linked accounts can be shut down instantly, even if only one account violates the rules.
• Funds across all accounts may be frozen, which can cut off your cash flow.
• Reinstating any of the accounts becomes a near-impossible challenge, potentially shutting down your entire Amazon operation.

That’s why it’s crucial to play by the rules. There are legitimate reasons to have multiple accounts, such as managing different brands or business categories separately. But in these cases, always seek and secure Amazon’s explicit approval before opening additional accounts.

If you think you need a second account, don’t take unnecessary risks. Submit a formal request explaining your business needs, and follow Amazon’s process carefully. Getting approval not only protects you from harsh penalties but also helps you maintain a healthy, long-term presence on the platform.

Remember, Amazon’s systems are designed to detect even the most minor details linking accounts. Attempting to circumvent the rules will only put your entire business at risk.

Stay Smart, Stay Safe

Steering clear of these five common mistakes is crucial to maintaining a healthy Amazon seller account and growing your reselling business sustainably. Remember, Amazon’s policies evolve regularly, so staying up to date with the latest Seller Central guidelines is essential before listing any product.

For ongoing expert insights, practical tips, and legal advice specifically tailored to Amazon sellers, continue to follow our blog and get in touch with our legal team.