7 Product Types You Should Avoid Selling on Amazon

Selling on Amazon can make money, but not all products are a good choice. Some can cause problems, cost more, or have low profit. Here are 7 product types beginners should avoid:

1. PRODUCTS WITH LOTS OF RULES (REGULATED ITEMS)

Examples: health supplements, cosmetics, alcohol, and medical devices.

  • You need special certificates or approvals.

  • One small mistake can get your listing or account suspended.

Tip: If you want to sell in these categories, only do it after researching compliance and certificationthoroughly.

2. PRODUCTS PEOPLE RETURN OFTEN

Examples: clothes, shoes, electronics.

  • High return rates → lost money and bad seller ratings.

  • Hard to make a profit if customers keep sending items back.

3. FRAGILE ITEMS

Examples: glass, ceramics, delicate electronics.

  • Easy to break during shipping → refunds and complaints.

  • Extra packaging costs reduce your profit.

Tip: Stick to durable, lightweight products for beginners.

4. PRODUCTS WITH TOO MUCH COMPETITION

Examples: phone cases, USB cables, kitchen utensils.

  • Many sellers → very low prices → very small profit.

  • Hard to stand out unless you brand the product.

Tip: Look for products with moderate demand and low competition, or products you can brand uniquely.

5. SEASONAL PRODUCTS ONLY

Examples: Halloween costumes, Christmas decorations.

  • Sell well only a few months a year → low cash flow the rest of the year.

  • Storage fees can be high if items don’t sell quickly.

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6. BIG OR HEAVY PRODUCTS

Examples: furniture, large electronics, gym equipment.

  • Shipping and storage cost is high → low profit.

  • Returns are harder to handle.

Tip: Start with small to medium-sized products that are cheaper to store and ship.

7. PRODUCTS WITH TRADEMARK OR IP ISSUES

Examples: branded items, copied designs.

  • Selling these can get your account suspended.

  • Legal problems are possible if you sell someone else’s brand or idea.

✅ KEY TIP

Start with small, durable, evergreen products (things that sell all year) and low competition. Avoid these 7 product types until you’re experienced.

Remember: Selling smart is more important than selling fast.