10 Types of Products to Avoid Selling on Amazon FBA
Are you thinking of launching a private label Amazon FBA product? While there are many products that can be successful on Amazon, there are also products that are more complex to launch and more difficult to be successful in. In this article, we will discuss 10 types of products that you should avoid selling on Amazon FBA.
Products That Sell for Under £15
Products that sell for under £15 may seem like a good idea because they are affordable for customers. However, the profit per unit is very small, which means that the margin for error gets smaller. Small mistakes can have a big impact on products that sell for lower prices, and you are more likely to make mistakes at the beginning of your journey. Therefore, it is recommended to avoid selling products that sell for under £15.
Products That Sell for Over £50
Products that sell for over £50 may seem like a good idea because they have a higher profit margin. However, there is always a percentage of products that are damaged and have to be thrown away. If you are selling products that only cost you a few pounds per unit, then you are only going to lose a few pounds per unit for each of those damaged and unsellable units. However, if you are selling products that sell for £50 or more, then those losses can be much bigger.
PPC Restricted Products
PPC restricted products are products that Amazon does not allow sellers to run PPC campaigns on. This includes sexually related products and drug-related products. If you cannot run PPC campaigns, it makes it very difficult to launch new products and maintain organic ranking once you have gained it. Therefore, it is recommended to avoid PPC restricted products.
Products with Lots of Variations
Products with lots of variations can make launching PPC campaigns, forecasting, and stock management much more complex. If you have 10 different variations, understanding how well each one sells, forecasting sales, and making sure you stay in stock of all 10 becomes really complex. You may also end up with excess stock, which leads to poor cash flow, high storage fees on Amazon, and a low IPI score.
Seasonal Products
Seasonal products are products that sell better during a specific time of the year and sell worse in the rest of the year. This can make forecasting and stock management really difficult. You may completely miss the season if a shipment arrives late, or you may end up with excess stock if the product does not sell as well as expected.
Trending or Fad Products
Trending or fad products are products that have blown up on social media, and demand goes through the roof for those products very quickly. However, demand drops just as quickly, and it takes several months to launch a private label product. Therefore, it is recommended to avoid fad or viral products.
Large and Heavy Products
Large and heavy products cost more in shipping from your manufacturer to the Amazon Fulfillment centers, Amazon Fulfillment fees, and Amazon storage fees. If your competitors are selling smaller, lighter products, and you are trying to create an improved product offer, launching something that is much bulkier and heavier means that you are going to have much higher costs than your competitors.
Fragile Products
Fragile products can get damaged at so many different points, and there are two main issues with having damaged products. First, Amazon does not check each unit inside the box before they send it to customers, so customers might actually receive damaged products. Second, if customers are returning damaged products, those products cannot be sold, and you end up with unsellable inventory.
Complex or Complicated Products
Complex or complicated products include products that have lots of moving parts, electronics products, or anything that parts can get lost or customers can find it complicated to use. If parts of the product get lost or customers cannot understand how to use the product, those customers are going to return the product to you, and you may end up with unsellable inventory.
Ingestible or Skin Contact Products
Ingestible or skin contact products include things like supplements or cosmetics. These products come with a lot of regulatory complexity, and your product might actually cause harm to someone. If your product ever injures someone, you may actually be sued. Therefore, it is recommended to avoid selling ingestible or skin contact products.
Bonus: C or UKCA Marked Products
C or UKCA marked products are products that require lab testing to show that the product is safe and create something called a declaration of conformity. If you want to sell one of these products, you have to do your own testing, create your own declaration of conformity, and get product/public liability insurance. Therefore, it is recommended to avoid selling C or UKCA marked products when first getting started.
In conclusion, while there are many products that can be successful on Amazon FBA, there are also products that are more complex to launch and more difficult to be successful in. By avoiding these 10 types of products, you can increase your chances of success on Amazon FBA.
Highlights
- Products that sell for under £15 have a smaller profit margin, which means that small mistakes can have a big impact.
- Products that sell for over £50 can lead to bigger losses if they are damaged or unsellable.
- PPC restricted products make it difficult to launch new products and maintain organic ranking.
- Products with lots of variations can make launching PPC campaigns, forecasting, and stock management much more complex.
- Seasonal products can make forecasting and stock management really difficult.
- Trending or fad products can lead to excess stock if demand drops quickly.
- Large and heavy products cost more in shipping, Amazon Fulfillment fees, and Amazon storage fees.
- Fragile products can get damaged at so many different points, and you may end up with unsellable inventory.
- Complex or complicated products can lead to negative reviews and unsellable inventory.
- Ingestible or skin contact products come with a lot of regulatory complexity, and your product might actually cause harm to someone.
FAQ
Q: Can I sell products that sell for under £15 on Amazon FBA?
A: Yes, you can sell products that sell for under £15 on Amazon FBA, but it is recommended to avoid them because the profit per unit is very small, which means that small mistakes can have a big impact.
Q: Can I sell seasonal products on Amazon FBA?
A: Yes, you can sell seasonal products on Amazon FBA, but it is recommended to avoid them because they can make forecasting and stock management really difficult.
Q: Can I sell fragile products on Amazon FBA?
A: Yes, you can sell fragile products on Amazon FBA, but it is recommended to avoid them because they can get damaged at so many different points, and you may end up with unsellable inventory.
Q: Can I sell ingestible or skin contact products on Amazon FBA?
A: Yes, you can sell ingestible or skin contact products on Amazon FBA, but they come with a lot of regulatory complexity, and your product might actually cause harm to someone. Therefore, it is recommended to avoid selling ingestible or skin contact products.
Q: Can I sell C or UKCA marked products on Amazon FBA?
A: Yes, you can sell C or UKCA marked products on Amazon FBA, but they require lab testing to show that the product is safe and create something called a declaration of conformity. Therefore, it is recommended to avoid selling C or UKCA marked products when first getting started.
