Learning from other people’s experiences can help you avoid making the same mistake as they did.
This post is based on an article by Garlic Press Seller on Web Retailer where he reveals his three biggest FBA fails.
1. Trouble with Customs
His biggest loss happened when customs seized 5,000 units of two of his best-selling products.
Here’s the letter he received.
As the seller was selling a product with small parts which are a choking hazard and had a photo of a child under 3 years on his packaging, customs seized his goods.
Key takeaway: Always ensure you comply with customs laws
2. Supplier Issues
The seller ordered 1,000 units from China and it was a huge success. On the second order, he upped the quantity to 3,000 and negotiated a better price per unit.
However, when the second batch hit the FBA warehouse, he started getting a lot of negative reviews and returns.
He ordered some of his own product and noticed 11 of the 20 orders were missing parts and made out of thinner plastic.
Perhaps because of the new price, the supplier decided to use inferior materials.
Key takeaway: Always inspect your goods first.
3. Wrong Product Selection
Product selection is the most important part of your FBA business. Picking the wrong product is the most common FBA failure.
Here are Garlic Press Seller’s product research requirements:
- $15 + sale price
- High demand: At least $3,000 revenue per month for competitors in my niche.
- Healthy profit margin: At least 33% of the sales price
- Easy to manufacture.
- Weak competition: The competition should have around 50 reviews or less.
Key takeaway: Avoid a product that is hard to manufacture.
