12 Critical Mistakes U.S. Amazon FBA Sellers Keep Making in 2025 — And How to Fix Them Fast

In 2025, Amazon FBA selling in the U.S. is more competitive than ever before. With new charges, changing customer habits, more regulation, and the emergence of alternatives such as TikTok Shop and Temu, sellers need to change quickly or get left behind. Even as complexity increases, most sellers still make the same unnecessary errors that bleed profits, damage rankings, and eventually lead their businesses to stall.

This article analyzes 12 common errors which U.S.-based Amazon FBA sellers continue to make in 2025 and provides actionable tips to correct them right now. Whether you are just starting out in FBA or are an experienced seller, correcting these errors can make a huge difference to your outcome.

1. Panic-Pricing in Response to Tariffs

What’s happening: With ongoing U.S.-China trade tensions and new tariffs imposed in 2024–2025 on electronics, apparel, and household goods, sellers sourcing from China are experiencing a 10-25% increase in landed costs.

The mistake: Many sellers are immediately increasing product prices to protect margins, without validating customer price sensitivity.

How to fix it:

Diversify sourcing: Explore Vietnam, India, Mexico, or nearshore manufacturers.

Bundle products to increase perceived value without increasing costs.

Use Amazon Business to reach B2B buyers who are less price-sensitive.

Example: A seller of kitchen gadgets added a recipe eBook and custom packaging instead of raising prices. Their conversion rate increased by 14% despite higher costs.

2. Ignoring the 180-Day Storage Surcharge

What’s happening: Amazon expanded its aged inventory surcharge in 2024. Now, inventory held over 180 days incurs extra fees—even for slower-selling products.

The mistake: Sellers overstocking in anticipation of Q4 sales or using FBA as long-term storage.

How to fix it:

Use the FBA Inventory Age and Restock Inventory reports.

Create removal orders before surcharges hit.

Split inventory between FBA and third-party 3PLs.

Tip: Set automatic alerts in Seller Central for SKUs approaching 180 days.

3. Treating PPC Like a Slot Machine

The mistake: Sellers throw money at broad campaigns without a strategy, hoping for quick wins. The result? High ACoS (Advertising Cost of Sales) and low profitability.

How to fix it:

Structure campaigns by intent: TOFU (awareness), MOFU (consideration), BOFU (conversion).

Use N-gram analysis to cut underperforming search terms.

Implement rules-based bidding in Amazon Ads or via software like Quartile.

Example: One beauty brand cut 34% of wasted PPC spend by grouping keywords by customer journey stage, leading to a 41% ROAS improvement.

4. Neglecting TikTok, Instagram Reels & UGC

The mistake: Assuming Amazon is the only traffic source, and ignoring where customers discover products: social platforms.

Why it matters: TikTok drove over $20B in global e-commerce sales in 2024, and Amazon now allows attribution from external platforms.

How to fix it:

Create short UGC-style videos with creators.

Use Amazon Attribution links to track external traffic.

Run Amazon Brand Referral Bonus campaigns.

Stat: Sellers who drive external traffic earn 10% back via the Brand Referral Bonus.

5. Skipping Trust-Building Assets

The mistake: Ignoring powerful labels like “Made in USA,” “Veteran-Owned,” or “Eco-Friendly.”

How to fix it:

Use Amazon’s “Climate Pledge Friendly” or “Small Business” badges.

Add a Brand Story module featuring founder credibility.

Include certifications (USDA Organic, FDA registered, etc.).

Bonus: These labels can increase conversion rates by 8–15%, especially with U.S. buyers who value transparency.

6. Still Keyword Stuffing Titles & Bullet Points

The mistake: Old-school optimization tactics still plague listings—long, unreadable titles and keyword-stuffed bullets.

Why it’s bad: It reduces clarity and hurts mobile conversions.

How to fix it:

Write for humans first: clear, benefit-driven copy.

Use backend search terms for secondary keywords.

Limit titles to 150 characters max (per category rules).

Example: A fitness brand simplified its title, removing duplicate keywords. Click-through rate rose by 19%.

7. Ignoring Amazon Posts & Brand Story Modules

The mistake: Many U.S. sellers ignore free brand-building tools Amazon rolled out for Brand Registry accounts.

How to fix it:

Post 3x/week on Amazon Posts (like Instagram, but native to Amazon).

Use the Brand Story module to introduce your mission, founders, and product range.

Why it matters: Customers who engage with A+ and Brand Story content are 2.5x more likely to purchase.

8. Running Global Tactics in the U.S. Market

The mistake: Copy-pasting listing formats, offers, and visuals from other marketplaces (like UK, Germany, or Japan).

Why it fails: U.S. shoppers respond differently. Overhyped urgency, broken English, or unrealistic claims backfire.

How to fix it:

Localize your content: cultural relevance beats translation.

Use U.S.-based copywriters or Amazon Content Agencies.

Test U.S.-specific promo language like “Family-Owned” or “FDA Compliant.”

9. Neglecting Demographic-Based Targeting

The mistake: Treating all U.S. buyers as one audience.

How to fix it:

Use Amazon Brand Analytics to analyze age, gender, and region.

Adjust product photography, copy, and PPC targeting accordingly.

Example: A pet brand adjusted their listing images for dog owners in warmer states and saw a 28% jump in conversion in California and Florida.

10. Selling Features, Not Feelings

The mistake: Leading with specs like “18V motor” instead of benefits like “Powerful enough to clean your car in 5 minutes.”

How to fix it:

Highlight emotional and functional benefits.

Use customer testimonials in A+ content.

Apply PAS (Problem–Agitate–Solution) copy structure.

Stat: Listings that lead with emotional benefits convert 27% higher than feature-first listings.

11. Skipping External Traffic & Email Marketing

The mistake: Relying solely on Amazon traffic.

Why it’s risky: You’re vulnerable to algorithm changes, ad cost inflation, or account suspension.

How to fix it:

Build landing pages using tools like Helium 10 or Zipify.

Use Amazon Attribution + email flows via Klaviyo or Mailchimp.

Launch giveaways or lead magnets to build an email list.

12. Overlooking FTC Compliance & Affiliate Risk

What’s changed: Increased FTC scrutiny in 2024–2025 on claims, reviews, and influencer disclosures.

The mistake: Letting influencers promote without proper disclosure or using fake reviews.

How to fix it:

Vet your influencers and ensure “#ad” or “sponsored” tags.

Monitor seller feedback and remove manipulative language.

Use Amazon Vine or the Early Reviewer Program (if eligible).

Warning: FTC fines can reach up to $50,000 per violation.

Final Thoughts: Adapt or Fall Behind

The Amazon landscape in 2025 is faster, smarter, and more nuanced than ever. The sellers who win aren’t the biggest or most funded—they’re the ones who adapt. Start with fixing just 2-3 of the mistakes above, and you’ll see measurable improvement.

Remember: Amazon FBA is still an incredible opportunity—but only for those who treat it like a real business.

Now’s the time to audit your listings, clean your strategy, and optimize for what’s working today.

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