Hello everyone in this article, I’m going to be warning you about 5 items do not sell on Amazon that are potential traps for private labeling and selling on Amazon, if you fall one of these traps, it can cost you a lot of money especially if you are a new seller.
1# Why You should not sell Amazon patents product?
Here is the first item that you should not private label and sell on Amazon, so why you should avoid it? Let’s imagine Michael a new Amazon seller who is looking to private label and sell his first item on Amazon, he decide to go to Alibaba and do a search for dual dog leashes, he spots a unique and interesting design that is different from the others, this is a good idea than sell those boring other dual dog leashes, he’s going to sell this ingenious design and make a ton of money, he goes and he orders a bunch from the manufacturer. But unfortunately, Michael made a big mistake because this item has an active patent from the company Wigzi.
When Michael puts his new fog leashes up on Amazon, not only will Wigzi get it taken down when they spot it, but they could potentially sue Michael for patent infringement too and it would be a really tough lesson for Michael to learn that there are many Chines suppliers out there manufacturing products that they do not have the right to do so…
…taking a look at the product listed on Alibaba we can see that it has a reel separate from the handle that rotates so that the leashes don’t get tangled which is the first feature specifically stated in Wiggin’s patented design…
…and here we can see that it has two different triggers for each leash that operates separately which is the second feature stated in Wegzi’s patent and each of the triggers is the same color as the leash they are attached to so that you don’t forget which trigger is connected to which leash, which surprise is the third feature listed in the Wegzi patent.
So if you see an item that looks really great to private label, stop and check to see if there are any active patents protecting the design, it’s really easy to do patent searches, I like to use Google Patents it is simple to use and free.
2# why you should avoid selling Amazon seasonal items as a beginner seller?
Here is the next product that you should avoid as it is a potential trap, can you figure out why that is? The reason why you should not private label and sell this item on Amazon is it a seasonal product, when you buy beach towels, when it’s warm outside, not when it’s freezing cold in the middle of winter, these blankets sell like crazy over the summer but during colder months, the sales massively drop off. Now there is nothing wrong with seasonal products, don’t get me wrong, there is a ton of money to be made in them but they are not consistent money, you make a lot of money for one period of the year and the for the other times of it is super slow, so for beginners out there looking to sell their product and probably hoping to use it to make enough money to quit their jobs, I recommend picking a product that has consistent ongoing sales so that you could have reliable consistent income every month.
3# Avoid selling Amazon prohibited items right now
Here is our interesting item, why this item is a trap and should be avoided being private label and sold on Amazon? the reason why I chose these penis enlargement pills is that I received a comment recently from someone asking if it would be a good product to sell! Honestly, I’ve never tried to sell these pills, so I didn’t know but I have my suspicions that this was not going to be a good product, but even I couldn’t predict the twist ending that this case was going to have. My first action during the investigation was to go to Amazon and see if any of these pills were listed and selling, I went to Amazon and started to tip in penis enlargement pills into the search bar but interestingly, once I started typing in the word enlargement, Amazon stopped recommending search phrases to me even though I was 100% certain that people probably type this in a lot.
After I did the search, I found some interesting results, most of the items listed have very few reviews with only a handful having over a 100 and funnily enough, the reviews were extremely mixed, no five star rated products here, the fact that there were very few reviews for each listing was even more curious after checking it out on Jungle Scout
These pills were selling like crazy! After opening up the listings with very few reviews and taking a look at them, it became apparent that they had already been on Amazon for about three months which was why they didn’t have many reviews. Of course, I still had some lingering questions, one of them being why are there a few listings that are breaking the trend and have been up for a couple of years and over 1000 reviews?
well upon further inspection, while these pills contained the exact same ingredients as the other, they never ever mention the words penis or enlargement in the product listing, instead these listings would say things like “Use these pills to increase the performance size of your workouts”, clearly the true purpose of these pills was being disguised. My conclusion then was that most likely these pills were not allowed. So, my investigation let me look at Amazon’s list of prohibited dietary supplements and sure enough, sexual enhancement products are prohibited and banned on Amazon.
It turns out that yes you can often get away with selling prohibited items on Amazon once some people start doing it, Amazon apparently begrudgingly lets other people do it too but you would be building your business a base of sand because all it takes is for one person to come along, report to Amazon and make enough of a fuss for them to go and remove your listing. It’s very clear that Amazon doesn’t want these pills up on their site especially because of the fact that when you go to the search bar and start typing them in, no search phrases come up despite the fact that they are high sellers but Amazon is not motivated enough by themselves to go ahead and remove them that is until someone comes along and makes an official complaint, then gives Amazon the excuse to go out there and prioritize the issue and move the items which clearly does happen since most of the listings were only a few months old, and while you could attempt to be sneaky like some of the pills were clearly trying to be, if Amazon ever bothered to take a closer look at the comments, you true motivations would become apparent. Even though you get away with selling prohibited items for a while, I do not recommend it because, at any moment, Amazon could turn on you, remove your listing and potentially even ban your account, this item was prohibited by Amazon.
4# Why you shouldn’t sell fad items?
This here is the fourth product that is a potential money trap, and the reason why you should not private label and sell this item on Amazon is because it is built around the iPad, when I say that iPads are fad, I’m not saying that they’re going to suddenly go out of fashion and nobody is going to want to buy them anymore, instead what I mean is that iPads are constant year after year being updated and changed, so if you making accessory for one generation of the iPad family, there are no guarantees that it’s going to fit the next generation when it is announced. Something else to keep in mind is that cultural trends like fidget spinners are a lot less appealing for private label sellers than they are for drop shippers and that is because in the private label world, it only takes around two to three months to contact your manufacturer, get your items produced, ship them into the Amazon warehouses and enlist them for sale and by the time that the item has reached the shores of the USA, there is a really strong chance that the fad will have died out by then, while maybe a little bit least exciting, look to private label products that have historical stable proven sales so that you can have consistent reliable income.
5# Don’t start selling product require insurance premiums
This is the final product that you should not private label and sells on Amazon especially as a beginner. The reason why you should not sell this item on Amazon is because getting liability insurance, for something like essential oils is actually quite a lot more expensive than getting it for a simpler item like a soap dispenser and that is because that essential oil is designed to be applied to the body, anything that is either designed to be applied to the body or inserted into the body like pills are going to attract higher insurance premiums.
In addition, anything is an obvious accident risk like blenders as they contained blades, also have higher insurance premiums. And products that are potential choking for children also have this issue, which is why this one of the downsides of producing a product that is aimed at kids,
When you sign up for Amazon you actually agree in their term services that once you hit $10,000 product liability insurance for your items, I do however want to say something, if you are sitting there intimidated by the idea of starting your Amazon business because of things like product liability insurance don’t be, all these scary things that you’ve never done before like getting insurance or paying taxes or importing products, trust me it’s not as hard as you probably think, most of these are solved by simple googling your questions and reading the answers, there is so much information out there to help you, the successful people are those that instead of coming and when they hit a hurdle that they don’t know how to get over and think “oh, I’m just going to stop here” think instead “I don’t know how to get over this, let’s find out”, and it’s those. People that get to quit their draining, uninspiring day jobs and build the dream life that they’ve always wanted.
So guys if you have any questions about the article be sure to ask in the comment section and subscribe to my newsletter to get the latest post. And if you appreciated the honest advice in this article then we’d love if you share this post with other sellers online friends.