What's up Ninjas! Just admiring my merchandise we are going to talk about
the seven types of products that you should be avoiding as a new Amazon FBA
Seller then we're going to go into a lot of product examples of things that
People are actually selling right now and sourcing right now and these
Products will be coming over saturated and so I'm gonna save you guys a ton of
Money if you stay to the end of this video
So the first type of product that we want to avoid selling is breakable and
What I mean by this guys is things that are going to break in transit so we're
Talking about glass here we're talking about ceramic here we're talking about
You know complicated technology or things a lot of moving pieces that have
A potential to break while in transit Amazon suggests and this is a
little-known rule that every product you sell on Amazon as a third party seller
should pass what is called the drop test the drop test basically means that you
could drop a product from head height onto the ground fully packaged and it
would not break so if your product can pass this then you will be okay so if
you are going to sell breakable products something that I always tell people
right think outside the box don't follow what
everyone is saying so if you are going to sell breakable products and I
personally sell but you know hundreds of thousands if not millions of dogs of
breakable products every single year the number one thing that you have to make
sure you're doing better than other people is packaging better right so if
you are going to sell breakable products get bubble wrap get bubble tape right
get foam inserts make absolutely sure that every single one of your products
passes what Amazon likes to call the drop test because people at UPS just
don't care they'll throw your stuff right they've had a long day they have
all these packages every single day they're not getting paid the money that
they deserve and so they're going to break your stuff they're gonna throw
around your stuff so you have to make sure that you have what it takes from a
packaging perspective to keep your products safe number two that I like to
avoid is anything that involves technology I don't like to sell
electronic products I don't like to sell products that have a lot of complicated
moving parts I just don't like to sell technology in general there are
thousands and millions of Praxis out on Amazon that are not electronic right
that don't have lithium-ion batteries anything with lithium-ion batteries has
a ton of shipping restrictions and a ton of customs and Chinese ports both in the
United States and in the China port that you are going to have to suffer through
the restrictions of if you ship anything with lithium-ion batteries because they
have a high chance of exploding so just trust me when I tell you don't sell
anything with lithium-ion batteries you will thank me later and if you ever meet
somebody who does you'll understand their pain right so another
thing about technology that isn't generally what you want to go after is
it has a much higher rate of return and the reason for that guys is people can't
figure out how to use certain technology people can't follow instructions people
can't have can't figure out how to use things that involve any level of
complexity this will give you negative reviews because even if you have the
perfectly functional product and they can't figure it out
it'll make them feel stupid and they'll leave a one-star review or they will
simply return it and you have to process all those returns right with all the
different return fees and you know you'll just lose out on that potential
sale the third thing that I recommend staying away from is anything that you
need an FDA approval for right so this is something that goes inside of your
mouth right we're talking about snoring we're talking about anything that goes
in a baby's mouth we're talking about any type of products that could be
categorized as needing an FDA approval right so before you actually go into
selling a product what I always recommend people do is reach out to
seller support right open a chat with other support get it in writing
ask them find an Aysen or a product that is very similar to what you're
considering sourcing and ask seller support via chat if it is okay to sell
this specific product and once they tell you in writing yes or no ask if there's
any gating restrictions and you have some restrictions of any kind for your
particular account account selling this particular product and if they say yes
then you are a much higher likelihood of not having any more problems down the
line as far as you know requiring an FDA certificate or any type of kind of
health certificate that you didn't otherwise know you needed for that
product the third type of product that I like to stay away from is anything that
is patented or trademarked and what I mean by that guys is something that can
be patented for example is like velcro right something that could be a
trademark is like Kevlar or Nike right so look Google search if you don't know
what a patent or a trademark means I'm not going to go into it super in-depth
right but just make sure that any product that you are potentially
thinking about sourcing and investing all of your hard work and time and money
into isn't patented or trademark the fourth type of product that I like to
stay away from is clothing and does this apply to all clothing absolutely not but
the main thing about clothing that I don't personally like
and that I've had difficulties with myself is clothing that requires
multiple different sizes right because if I sell a t-shirt that comes in small
medium large XL maybe double XL that's five different SKU or five times the
complexity five times the number of different sizes I have to order and keep
track of and assign variance to and assign different barcodes to and it just
adds a ton of complexity for not much potential you know additional profit and
so if you are going to sell clothing make sure it's something that go one
size fits all beanie rather than a t-shirt that requires you know multiple
sizes and multiple different sk use and things you have to keep track of because
that complexity adds up quick and if you have it ninjas make sure you smash that
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the sixth type of product that I like to stay away from is toys and the reason
that I like to stay away from toys is because they generally have a higher
likelihood of being fads and what I mean by that is a toy can become incredibly
popular and then lose 100 percent of its momentum very quickly to sync the same
thing happened with fidget spinners the same thing has happened with Hatcher
malls the same thing is probably about to happen with squishies the same thing
happens over and over and over again and I've been in the Amazon FBA business for
a long time and I've seen these cyclical patterns of toys coming becoming super
popular and then fading very quickly out of popularity and people with you know
hundreds or thousands of units are kind of stuck with those particular products
after the fad has gone down and after there's not enough demand to actually
keep up with the number of supply so any specific seller has and you know
especially if something super popular it attracts a lot of sellers like fidget
spinners and all of a sudden there's thousands of sellers sitting on
thousands of units every one of which is trying to get rid of their merchandise
which means it's a race to the bottom on prices and everyone
loses out so I like to stay away from toys because they are generally that's
the topic and the product category that has the highest likelihood of actually
being a cyclical fad and the final category that I like to stay away from
as an Amazon FBA seller is anything that could be potentially dangerous and what
I mean by that guys is requiring a ton of product liability insurance for a lot
of the products that we sell currently we don't invest heavily in product
liability insurance but if you did sell something specifically like knives or
you know a baby set of juggling tools that are chainsaws right or something
ridiculous like that that would require a lot of product liability insurance
that has inherent amount of danger with it like knives do like something that
you know a baby could potentially choke on like a lot of different things that
could potentially kind of present situations where you could get sued as a
company those are not worth the extra effort and the extra thought and the
extra expense for insurance right and potential of getting sued so instead of
actually you know worrying about all that I generally like to stay away from
any products that could miss acetate having a ton more extra cost from a
product a liability insurance perspective and that present the
opportunity of me or my company being sued so let's talk about exactly which
products to avoid as I promised that I would tell you guys before we ended this
video the first product you want to avoid is the fidgets spinner of course a
million people started selling this because it's super cheap to manufacture
it exploded in popularity and now there's a million people selling it
which pushes the price all the way down and everybody is left stuck with
thousands of units that they can't actually sell so never sell the fidgets
spinner it is very far past its time again it was a toy it was a fad and that
fad is over angle eyes rulers is the second one there's no way to sell an
angle as ruler other than someone specifically typing in angle as ruler
there's no other PPC terms there's no creativity there's no way that you can
actually advertise this product to anyone else on Amazon besides just
competing higher and higher and higher for the same exact PPC terms which means
that everybody's competing for those same terms which means each term is
extremely expensive which means that it eats up all of your profit margins then
the only person who wins in the end the end customer and Amazon the next one
that we want to talk about is letter boards letter boards look very enticing
on Amazon FBA they look very enticing on genuine Scott on viral launch but there
are a ton of people actually sourcing and launching these products as we speak
how do I know that good question the way that I know that is that I'm actually
friends with a lot of the people who own the biggest software out there like zon
Jo like viral launch I speak to the CEOs I speak to the founders often and they
tell me you know Kevin we're seeing 50 different people all simultaneously
launching a letter board so if you're going to tell your students if you're
going to tell your followers in your youtube fans not to launch any specific
products it is the letter boy so believe me if you want don't believe you if you
want but there are a ton of people launching this and it is a product that
is soon going to be extremely oversaturated the next one is
chalkboards and mini chalkboards again same exact thing my friends who are you
know part of these big launch services who deal with thousands and thousands of
sellers and launchers every single month on Amazon are telling me products to
avoid chalkboards and mini chalkboards are two of the three that they actually
told me not to have my students and my followers so the other one is baby bibs
baby bibs again are very hard to differentiate to a certain degree
everyone out there and their mother is launching a silicon baby bib all types
of different baby bibs baby boobs is actually really in fun to say so I'm
gonna say that one more time baby that baby bit baby bib and you don't want to
be launching baby bibs because there are a lot of people who are currently
launching baby bibs the next one is baby diaper bags again this product looks
very enticing on Amazon on jungle scale on barber launch but there are a lot of
people simultaneously launching it and my connections with people who are
actually part of these launch services are telling me you know kept a lot of
people 50 people a day are trying to launch these products warn your students
warn people who might be in the beginning stages of these products to
stay away the next one guys and the last two are baby covers for car seats
strollers and nursing and the final one is scratch off
Maps if you found scrapped off maps in 2014 or 2015 then you probably made an
absolute killing this is a product that I have sold in
the past and we made an absolute killing but now there are so many people who saw
the amazing numbers so many people who figured out that you could source them
for so cheap and sell them for so expensive and so many people who
capitalize on this trend that there are now - there's now too much supply and
not enough coinciding demand and there's a lot of people out there who are stuck
holding this inventory