Mitigate risk by avoiding product categories that typically underperform on the platform.
While aspiring sellers constantly seek the next groundbreaking item to offer on Amazon, accurately predicting successful sales remains elusive. Nonetheless, one can mitigate risk by avoiding product categories that typically underperform on the platform.
Below is a compilation of products that sellers should exercise caution in selling on Amazon:
Oversaturated products
Saturation levels are contingent upon consumer purchasing power, competition, pricing, and technological advancements. Certain categories suffer from excessive saturation, with the supplement category being a prime example.
Cell Phones & Accessories
Among the fiercely competitive categories on Amazon, the domain of cell phone accessories arguably reigns supreme. Surprisingly, it may even surpass the cutthroat nature of the supplement category.
Ponder this for a moment.
Does the world truly yearn for yet another USB cable or iPhone case? Can your exceptionally innovative USB cable genuinely contend with Amazon Basics or Chinese sellers?
Unless you possess a truly exceptional product, it is advisable to steer clear of oversaturated categories like cell phone accessories.
Amazon FBA Prohibited Products
While conventional product research software helps identify niches on Amazon, it conveniently bypasses restricted items. Such prohibited products do not appear in the platform's listings and, consequently, remain absent from research results.
Nevertheless, occasionally, individuals conceive brilliant ideas. They may already be selling their products elsewhere or endeavoring to introduce something new to Amazon's marketplace.
For those embarking on such ventures, bear in mind that the absence of a product on Amazon may signify its restricted nature or lack of sales success.
Aspiring Amazon FBA sellers must familiarize themselves with two crucial lists:
Restricted Products: These items are strictly forbidden for sale on Amazon.
FBA Prohibited Products: While not restricted on Amazon, they cannot be sold through FBA.
Conduct thorough research. Seemingly innocuous items like sky lanterns, for instance, fall under the FBA prohibited list.
To delve even deeper, consider the realm of supplements.
In this context, one must also acquaint themselves with the following:
Prohibited ingredients
Food and Drug Administration (FDA) warning letters, safety alerts, or recalls
Federal Trade Commission (FTC) orders or guidance
Thorough research can save both time and money.
Trademarked/Patented Products and Counterfeits
Amazon's prohibited items list mirrors that of U.S. Customs, albeit not identically. It is plausible that products legally importable into the United States cannot be sold on Amazon.
Trademarked goods pose a significant hurdle. It is vital to ensure that the products intended for importation into the U.S. are not trademarked. Even if legally purchasable in China, they may infringe upon trademarks once they cross the U.S. border.
Moreover, avoid dealing in counterfeits. Amazon retains the right to destroy all illegally replicated, reproduced, or manufactured products. Refusal of removal requests for counterfeit inventory can result in not only lost sales but also the destruction of all your products.
Products Priced Below $10
In general, Amazon FBA is not conducive to selling items priced below $10 due to the challenges of turning a profit at such a low price point. There are two primary reasons for this:
Low Profit Margins
Selling products with low prices typically leads to low profit margins. FBA sellers have to consider various costs associated with selling on Amazon, including fees, shipping, packaging, and storage. When selling inexpensive products, the profit margins can be quite slim, making it challenging to generate significant profits or cover the costs involved in running the business effectively.
Increased Competition
Products priced below $10 tend to attract a large number of sellers, resulting in fierce competition. With lower-priced products, sellers often engage in price wars, continuously undercutting each other to secure sales. This intense competition can lead to reduced visibility, lower profits, and diminished opportunities to differentiate your products. As a result, it becomes harder to establish a sustainable and profitable business in such a highly competitive space.
Fad & Seasonal Products
Fad and seasonal products may generate a surge in sales during a relatively short period or specific times of the year. However, investing significant time and money into sourcing these products, which only enjoy a brief period of popularity, may prove to be cost-ineffective. Moreover, dealing with excess or obsolete stock after the fad wanes can be cumbersome.
Cosmetics
Selling cosmetic products intended for application on the face or eyes carries potential risks and liabilities. Allergic reactions or other harmful effects experienced by users can lead to legal complications.
Fragile Products
Whether it's glassware, furniture, antiques, crystal, ceramics, or any other delicate item, selling fragile products entails the risk of returns and negative reviews due to breakage during transit.
Products with Extensive Variations
Categories like clothing and shoes, which offer numerous options in terms of colors and sizes, not only demand more significant inventory storage space but also often experience high return rates from customers dissatisfied with the fit or sizing of their purchases.
Unfamiliar Products
Many novice FBA sellers focus solely on products with high sales potential, disregarding the importance of familiarity with the product category. Certain items require specialized knowledge or technical expertise for effective marketing and customer support. Selling a product without a deep understanding of its features and usage may result in additional efforts required to educate the market or manage numerous customer inquiries.
The Bottom Line
The selection of the right product is pivotal to achieving success on Amazon, and being aware of what not to sell can safeguard your long-term profitability. In addition to selecting the right products, repricing plays a crucial role in maintaining competitiveness and maximizing profits on Amazon.
Flashpricer is a powerful tool that can assist you in this process by providing effective repricing solutions for your products. And when you integrate proper product research with an effective repricer like Flashpricer, you have the tools to reach new heights on Amazon. The sky becomes the limit as you harness data-driven insights, adapt to market dynamics, and unlock the full potential of your business.