How to Avoid Common Beginner Mistakes in Amazon Arbitrage and Wholesale: Insights from Warner.
Starting out in Amazon arbitrage and wholesale can be an exciting journey filled with the promise of profit, but it’s easy to stumble into a few common traps that could cost you dearly. Luckily, Warner’s latest video has your back! In this video, he breaks down some of the classic mistakes that beginners make when sourcing products — and more importantly, how to avoid them so you can stay profitable from the start.
Ready to up your sourcing game? Let’s dive into what Warner shares about spotting bad products and setting yourself up for success!
1. Don’t Let Low Prices Fool You
We all love a great deal, right? But one of the biggest traps for Amazon sellers is jumping on products just because they’re cheap. It’s tempting to think, “Wow, this product is super discounted! I can make a killing reselling it!” However, Warner warns that low prices don’t always equal high profits.
In the video, Warner stresses the importance of ‘considering the full picture’: demand, competition, and fees. Just because a product looks like a steal, doesn’t mean it’s going to fly off Amazon’s shelves. Instead of chasing deals blindly, take time to research sales velocity (how fast it’s selling) and factor in Amazon fees before making a decision.
2. Ignoring Sales Rank and Competition
Another rookie mistake Warner highlights is completely overlooking the product’s sales rank (BSR) and competition on the Amazon platform. Sales rank is a strong indicator of how well a product is performing in its category, and it’s something you absolutely need to take into account when deciding what to sell.
The trick? Look for a product that has a steady sales rank. Warner explains how this balance can make or break your arbitrage efforts. Finding the sweet spot will help you avoid sitting on inventory that doesn’t move.
3. Skipping Product Reviews and Feedback
Customer feedback can tell you a lot about a product’s future performance. In the video, Warner emphasizes the importance of reviewing customer complaints and feedback ratings to avoid sourcing items that are likely to generate returns or negative reviews on your seller account.
A product with lots of negative feedback or a history of quality complaints is a red flag. Even if it looks profitable, selling such items could hurt your Amazon seller rating, ultimately affecting your ability to succeed on the platform.
4. Failing to Factor in Shipping and Storage Costs
It’s easy to get wrapped up in the potential profits of a product without fully understanding the hidden costs—another major pitfall for beginners that Warner touches on. Shipping and storage fees can quickly eat into your margins if you’re not careful. It typically costs .60-.90/lb for FBA shipping which can be included in your SellerAmp settings so you don’t forget!
Warner advises keeping an eye on the total costs, including how much you’re going to spend getting the product to Amazon’s warehouse (if you’re using FBA). High storage fees can also become an issue if your product doesn’t sell quickly, so understanding these fees is crucial to maintaining profitability.
5. Overlooking Product Restrictions
One of the worst mistakes you can make as a beginner is investing in a product that you’re not even allowed to sell! Warner breaks down the importance of checking Amazon’s restricted categories and gated products before making any purchases. Don’t know how to get approved for brands? Click here.
Amazon has strict rules about who can sell certain products, and some categories are restricted to new sellers. The last thing you want is to end up with inventory you can’t list. Warner’s advice? Always double-check Amazon’s restrictions before making any sourcing decisions to avoid getting stuck with unsellable stock.
6. Not Understanding Market Trends
Warner’s final nugget of wisdom? Pay attention to market trends. Jumping on a product that’s trending today might sound like a great idea, but if you’re late to the party, it could already be oversaturated with sellers. On the other hand, getting ahead of trends can help you secure products that will be in high demand in the future.
Researching what’s hot now—and what’s expected to be hot soon—can put you in the driver’s seat and help you avoid wasting money on items that no longer sell.
Ready to Level Up?
Sourcing the right products is an art form, and Warner’s video provides invaluable insights to help you avoid common beginner mistakes. By taking the time to do your research, understand the true costs, and stay ahead of trends, you can build a profitable Amazon business and sidestep the pitfalls that often catch newcomers off guard.
If you’re just starting your Amazon arbitrage or wholesale journey, this video is a must-watch. Check it out, absorb Warner’s tips, and make smarter, more profitable sourcing decisions!
Want more tips on mastering Amazon arbitrage and wholesale? Keep an eye on our updates! Stay tuned for more breakdowns of Warner’s expert advice and beyond. Let’s crush those sourcing goals together!
