Resourcing and selecting the right product to sell on Amazon FBA is half the battle for being successful with your Amazon business. You can get stopped before you’re even started with your Amazon FBA business by not selecting an appropriate product that is something your customers will enjoy and provide positive reviews on, but you can also find yourself dealing with legal entanglements if you don’t carry out the right research. Let’s start first with the discussion about the dangers of sourcing a patented product. When selecting the right label product to sell on your Amazon FBA store, you must have a basic understanding of patents.
In certain cases, sellers will have a product that is manufactured even though that product could actually be under a patent. More than likely, manufacturers you might connect with and buy from won’t know whether or not the product is patented. They might not realize the work that they should do to research whether or not the product is under a patent and are simply motivated in finding anyone who will buy the product.
Carrying out business in this manner on behalf of the manufacturer, however, doesn’t necessarily mean that it’s legal. You could find yourself in a significant mess if you invest most of your capital in product inventory only to shortly thereafter receive a lawsuit or cease and desist letter from the patent holder. Make sure you do your research about the product that you’re working with as well as the supplier. All of the elbow grease put in on this end of your business transactions can have a positive impact.
The second mistake you can make with a product is in not inspecting it fully. This goes along with some of our mistakes we’ve discussed in the blog before, such as sourcing a low quality product. The product must come off the manufacturing line in the way that you expect, and it must be provided to your customers in good quality and in overall good shape.
Many successful Amazon FBA sellers will even hire an inspection agency that is involved in the manufacturing process. The purpose of the inspection agency is to go in and look at the manufacturing process on site and monitor for any flaws or defects that could cause a problem on your end.
Even if it’s not geographically feasible for you to do this yourself, investing in this effort can save you a lot of money and time in the long run because you’ll be able to identify mistakes well before that inventory is sent to you in the United States.
Make sure that you understand all of the various aspects of running your business that intersect with the selection and manufacturing of products.
Doing your homework on this and building your business effectively will help you generate profit sooner rather than later and enable you to sell your business successfully in the future with the help of an experienced and knowledgeable business broker.
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