The biggest Amazon FBA mistakes on the way to €100,000 monthly sales - how to avoid them

Selling successfully on Amazon often sounds like fast growth and high sales. But many sellers overlook the stumbling blocks on the way to six-figure monthly sales. In this article, I share my most important learnings from years of FBA practice. You'll find out which mistakes I almost failed at and how you can avoid them. It's not just about tips for growth, but above all about real practical mistakes that can cost you dearly. Prepare to get concrete insights, clear recommendations with real examples, and understand the basics that will ultimately make the difference between success and failure.

https://www.youtube.com/watch?v=cMrz8doTS8s

My own start: From rapid growth to harsh reality

Like many people, I started out in the Amazon business full of euphoria. As the founder and Managing Director of Stacvalley GmbH, I have now been an active Amazon retailer for more than 6 years and have brought over 3,000 products to market together with our customers. Our brands and investments as well as partner brands have together generated millions of euros in sales. Nevertheless, I almost drove my first Amazon business into the wall along the way. Why? Because of mistakes that many people make: Growth without control, sales at any price and a lack of focus on what really matters.

The big problem with rapid scaling: The underestimated danger

As soon as the first products are up and running and the first sales figures fit, it feels like everything revolves around getting even bigger. 100,000, €250,000 or even €500,000 monthly turnover - these are the goals of many sellers. However, many underestimate the fact that increasing turnover also increases the complexity and risks in the background. The topics of cash flow, liquidity planning and stock levels in particular are often neglected. This is exactly where I almost failed.

Four pillars that determine your Amazon FBA success

1. turnover is not the same as cash flow

The most important principle: turnover is not the same as profit or liquidity. It sounds obvious, but many people fall into this trap. Anyone who makes a turnover of €50,000 rarely has this amount at their free disposal. Large sums are often tied up in inventory, logistics or are needed for costs and fees. If you ignore this and only focus on increasing sales, you can quickly fall into the trap and lose control.

Important findings:

• Always calculate how much money is really left over at the end.
• Think about where your money is in the company (goods, logistics, outstanding receivables).

2. optimize cash flow cycles: How to keep your company liquid

Every product journey on Amazon follows a cycle: money goes to the manufacturer (purchase), then production, shipping, storage at Amazon, sale, and finally the money flows back. The longer this cycle lasts, the later your tied-up capital flows back into the company.

Practical example:

• Worst case: 60 days production, 2 months sea freight, 2 months sales time - so it takes half a year to get the money back.
• Best case: Pay for goods only when they have been sold. This usually only works with long-standing suppliers and negotiated payment terms.

How to optimize your cycle:

• Arrange payments as late as possible, e.g. only after delivery of goods plus payment term.
• Choose producers with whom you can negotiate better conditions piece by piece.
• Avoid products that turn slowly and tie up your capital for too long.

Concrete example:With a German manufacturer I have achieved: 30 days payment term after delivery plus 15 days extra negotiating leeway. This means I can often sell the goods before I even have to pay for them. This ensures an extremely short cash flow cycle.

3. liquidity planning: overview is mandatory, not optional

If you start with just a few items, you may still be able to keep an overview. But from 10 products or six-figure monthly sales at the latest, it becomes confusing. Proper liquidity planning is then a must.

You should keep this in mind:

• Use at least one good Google Sheet or Excel to record all income and expenses.
• Tools can help, but often you need your own solutions that fit the FBA workflow perfectly.
• Include all costs: Purchase of goods, fees, stock, PPC (advertising), fixed costs and outstanding loans.
• Also plan your tax payments and reserves.

Many sellers place repeat orders "on the off-chance" and hope that the next money will arrive on time. This is dangerous and can lead you into a nasty trap.

Questions for your planning:

• When are which invoices due?
• How much money is left over after all expenses?
• Do you need short-term loans - and if so, how do you repay them?

4. reserves: without an emergency reserve, you'll quickly run out of money

Imagine your bestseller is blocked or your account is offline for weeks. What happens then? Without a reserve, a sudden tax claim or a delivery bottleneck can mean the end of your business.

My tip: build up reserves early on. Start by saving small amounts, e.g. 10 to 20 percent of profits or around 5 percent of turnover, in a separate account. Only use this money as an emergency reserve, not to reorder new goods.

Practical reasons for a reserve:

• Unforeseen additional tax payments (practical example: six-figure additional claim after 3 years without sufficient reserves).
• Sudden Amazon problems (suspensions, recalls).
• Almost every major retailer has had to fall back on it.

Common mistakes that can cost you your FBA business

Many FBA retailers waste capital on poorly performing products, tie up too much money in stock or forgo reserves. This can mean the end of the company, even if the sales appear impressive.

The biggest mistakes at a glance:

• Too much capital tied up in tired products.
• No emergency or tax reserve.
• Lack of liquidity control.
• Focus only on sales - profit and cash are forgotten.

With a little discipline, an overview and the right tools, you can significantly minimize the risk.

Practical tips: How to avoid these mistakes from now on

• Always distinguish between turnover and cash flow - and look at the actual cash balance every month.
• Keep your cash flow cycles as short as possible. Negotiate with suppliers, use favorable production locations in Europe, check alternatives in between.
• Maintain an up-to-date liquidity sheet that is updated regularly, especially from 10 items or over €100,000 in monthly sales.
• Build up a reserve. Even small amounts can help avert the biggest disasters.

If you want to find out more, you can find more practical tips about Amazon, FBA and growth on my Stacvalley Instagram profile and in our consultations.

Conclusion: How to get your Amazon FBA business safely on course for growth

The steps to big sales often sound simple - but the reality is much more complex. The decisive factors for sustainable success are not large sales figures, but healthy liquidity, controlled growth and solid reserves. Plan from the outset, implement the four pillars described in your company and don't be fooled by short-term successes.

Every Amazon business is unique, but the basics remain the same. With a little discipline and the right focus, you can avoid typical mistakes and make your business successful in the long term. Keep an overview, save up reserves in good time and don't be blinded by quick figures.

If you need further insights and individual support, take a look at our free initial consultation with Stacvalley. This way, you won't miss any important tips and you'll be on the safe side when scaling your FBA business.

Do it better than I did and put your Amazon business on the path to sustainable growth!