Avoiding Amazon Pitfalls: Compliance & Inventory Mistakes That Can Derail Your Brand

Navigating the complexities of selling on Amazon is no small feat, and in this episode of Seven Figures and Beyond: E-Commerce Marketing Podcast, host Greg Shuey welcomes Amazon expert Robyn Johnson to unpack the challenges that sellers face. With over a decade of experience in e-commerce, Robyn shares how compliance issues and inventory mismanagement can derail even the most promising Amazon strategies. She explains that while Amazon may look like a traditional search engine, it operates with a singular focus: driving sales conversions. Unlike Google, which values fresh content and engagement metrics, Amazon’s ranking algorithm prioritizes products that consistently sell well. This means that any disruption—whether it’s a compliance violation or an inventory stockout—can cause a seller’s hard-earned ranking to plummet, leading to significant revenue loss and the need to rebuild from scratch.

Beyond algorithm mechanics, Robyn dives into recent Amazon policy shifts that have tightened restrictions on compliance. Sellers now face more stringent product classification requirements, making it crucial to avoid misleading keywords or product attributes that could trigger a listing suspension. For example, using the term "doll" in a product title or claiming antimicrobial properties without an EPA registration number can result in immediate suppression. Furthermore, Amazon's changes to UPC validation mean brands must ensure their barcodes match their registered trademark on GS1, or risk having their listings blocked. Robyn emphasizes that Amazon is no longer the wild west of e-commerce; sellers must be meticulous in adhering to regulations, as violations can lead to costly delistings or, in extreme cases, business closures.

Robyn also provides insights on the critical role of inventory management in sustaining Amazon success. Running out of stock is one of the fastest ways to lose organic ranking, as Amazon’s algorithm penalizes listings that can’t consistently fulfill customer demand. To mitigate this risk, sellers should maintain at least 4-6 weeks of inventory at Amazon fulfillment centers and proactively adjust ad spend and pricing strategies when stock levels run low. She also discusses the balance between Fulfilled by Amazon (FBA) and merchant fulfillment, advising that while FBA increases conversion rates, Amazon’s new reimbursement policies may make it risky for high-cost or luxury items. Ultimately, Robyn stresses that winning on Amazon requires not just great products, but also careful planning, compliance diligence, and strategic execution to sustain long-term growth.

Episode Links

Greg Shuey LinkedIn: https://www.linkedin.com/in/greg-shuey/

Robyn Johnson LinkedIn: https://www.linkedin.com/in/robynjohnsonaz/

Marketplace Blueprint: https://marketplaceblueprint.com/

https://www.stryde.com/avoiding-amazon-pitfalls/