Top Mistakes New Sellers Make on Amazon & TikTok – And How to Avoid Them

A practical guide to help you avoid costly errors when starting your e-commerce journey on two of the world’s biggest platforms.

Selling on Amazon and TikTok Shop offers huge potential—but for many new sellers, the process can quickly become overwhelming. One wrong move during setup or account verification, and your launch could be delayed or denied altogether.

At iFiler, we’ve helped hundreds of entrepreneurs get started smoothly. In this post, we’ll break down the most common mistakes new sellers make—and show you how to avoid them with confidence.

🚫 Mistake 1: Using the Wrong Business Structure

The issue: Many sellers rush to open a personal seller account or register under their own name without understanding the long-term consequences. This limits your growth, exposes you to personal liability, and may result in tax complications.

What to do instead:

• Register a formal business entity like an LLC (USA) or Ltd (UK)

• Ensure the name matches all submitted documents

• Get a proper EIN (USA) or UTR (UK) for tax reporting

✅ iFiler can form your company and get your EIN/UTR even if you’re not based in the USA or UK.

🧾 Mistake 2: Submitting Incomplete or Mismatched Documents

The issue: Amazon and TikTok have strict KYC (Know Your Customer) policies. If your business name doesn’t match across your documents—such as your bank account, tax ID, or utility bill—your account may be rejected or suspended.

What to do instead:

• Double-check that your company name, address, and contact info are consistent across all paperwork

• Use only official and up-to-date documents

• Never crop or blur your ID or certificates

📎 iFiler ensures all your documents are correctly prepared to pass platform verification.

🏦 Mistake 3: Not Having a Business Bank Account

The issue: Using a personal bank account (or no account at all) is a common rookie mistake. Marketplaces may block payouts if your account isn’t in the business’s name.

What to do instead:

• Open a dedicated business account with platforms like Mercury, Payoneer, Wise, or Revolut

• Make sure your account shows your company name, logo, and address

• Submit a recent (within 90 days) statement for verification

🏁 iFiler helps you open business bank accounts remotely—even as a non-resident.

💸 Mistake 4: Failing to Understand Tax Compliance

The issue: Sellers often overlook tax obligations in their operating region, especially if they’re selling internationally. That can lead to penalties or even account bans.

What to do instead:

• Get an EIN (USA) or UTR (UK) early

• Fill out forms like W-8BEN or W-9 for Amazon (depending on your status)

• If required, register for VAT (UK) or sales tax in relevant US states

📑 iFiler provides full EIN/ITIN support, and helps you handle Amazon’s tax interviews with confidence.

❌ Mistake 5: Violating Platform Policies

The issue: Many new sellers rush to list products without understanding Amazon or TikTok’s terms of service, especially around trademarks, shipping, or product authenticity.

What to do instead:

• Read the platform’s seller policies carefully

• Don’t list branded products without proof of authorization

• Follow rules around returns, delivery times, and product descriptions

🛡️ We can help you register a trademark or provide custom guidance if your account faces issues.

📉 Mistake 6: Weak Product Listings and Store Setup

The issue: Poor-quality listings with bad images, broken English, or missing details won’t sell—and may lead to negative reviews or suspensions.

What to do instead:

• Use clear, high-resolution images

• Optimize your title, description, and keywords

• Localize your listings for the country you’re selling in

💡 Need help? We can connect you with professionals for listing optimization and store branding.

📬 Mistake 7: Ignoring Email & Phone Verification Steps

The issue: Using a phone number or email that isn’t monitored can cause you to miss critical updates, verification steps, or warnings from the marketplace.

What to do instead:

• Use a dedicated business email and verified number

• Set up alerts so you never miss an update

• Avoid using the same email/phone for multiple unrelated accounts

🔐 iFiler can help you set up a clean, professional communication channel for your business.

🎯 Final Tips: Set Yourself Up for Success

Launching on Amazon or TikTok is not just about listing products—it’s about being verified, compliant, and professional from day one.

Here’s a quick checklist:

• Form a legal entity (LLC or Ltd)

• Get your EIN/UTR

• Open a business bank account

• Prepare your documents properly

• Comply with tax laws

• Learn each platform’s rules

🌐 Let iFiler Handle the Hard Part

We specialize in helping entrepreneurs like you:

• Form a company in the USA or UK

• Secure EIN/ITIN and bank accounts

• Prepare all required documents for Amazon & TikTok

• Stay compliant with taxes and reports

• Recover rejected or suspended applications

📩 Ready to launch your store? Contact iFiler today and let us help you start selling—legally, professionally, and stress-free.