Understand the types of products that are suitable and not suitable for Amazon FBA

With the booming development of cross-border e-commerce, Amazon’s FBA (Fulfillment By Amazon) logistics service has attracted many sellers. However, not all products are suitable for FBA. The following is a summary of in-depth analysis of product characteristics that are and are not suitable for Amazon FBA.

Characteristics of products suitable for FBA

1. Excellent product quality and performance: High-quality products usually reduce the possibility of returns and exchanges, thus reducing the seller’s losses.

2. Small-volume, high-profit items: Small items are easy to transport, can reduce transportation and storage costs, and are recommended to be priced at more than $6 to avoid FBA fees from eating up profits.

3. Shelf-stable commodities: For example, canned food, etc., can withstand a certain storage time and have relatively low FBA speed requirements[].

4. Lightweight Goods: Small toys, apparel, and appliances often have lower storage fees, which can help manage logistics costs.

5. Return and exchange products that the seller cannot handle on their own: FBA provides convenient return and exchange services, which is suitable for sellers who are unable to handle this.

Product characteristics not suitable for FBA

1. Items with too low unit prices: If the retail price is less than $7, the item may become unprofitable after deducting FBA’s basic fees.

2. Items that are too large or too heavy: Such items will face higher warehousing and transportation costs, and long-term use of FBA will significantly increase costs.

3. Seasonal products: Seasonal products whose sales are difficult to accurately predict will lead to sales losses if there is a shortage of inventory; conversely, if there is too much inventory, long-term storage fees will have to be paid, causing greater losses.

4. Unpopular products: Even if the storage fee is low, once the storage time of unpopular products exceeds 6 months, you will face additional long-term storage fees.

5. Special or dangerous goods: Although some products can be sold on Amazon, they do not meet FBA’s shipping standards and may be refused shipment or destroyed.

Types of sellers suitable for Amazon agency operation

When choosing Amazon agent operation service, the following types of sellers are more suitable:

1. Novice sellers: The agency operation company has professional knowledge and can help novices quickly establish and operate stores and reduce trial and error costs.

2. Smaller sellers: These sellers usually have limited resources and can focus on improving their products and brands through agent operations.

3. Cross-border sellers entering unfamiliar markets: Agent operating companies can help sellers adapt to the characteristics of different national markets with low risk.

4. Sellers facing operational bottlenecks: Agent operations can provide professional support and market research to help solve various operational problems.

In summary, understanding the characteristics of products that are suitable and unsuitable for FBA, as well as the factors that need to be considered when choosing agent operation services, will help sellers make informed decisions and achieve higher business efficiency and profit returns. .