Why You Shouldn’t Be Selling Pandemic Products On Amazon

We’re halfway through 2020, and the coronavirus pandemic has been relentless to the economy.
Whether you are a beginner or have been in the eCommerce industry for years, you are probably tempted to try to earn a spot on Amazon’s best seller list. By investing in Amazon pandemic products. PPE and healthcare supplies are currently the top selling products on Amazon. However, while these Amazon pandemic products have high demand. As well as, likely to generate profit, this may result in a risky investment.
In this article, Nine University covers why you may want to think twice before investing in pandemic products.

Market Research Vs. Luring Headlines For Amazon Pandemic Products

There have been plenty of headlines about how Amazon, unlike other businesses, is thriving during the pandemic. You may have stumbled upon headlines about how “X” person earned a ton of money by selling Amazon pandemic products. While these stories are true, this scenario has not been the case for all Amazon sellers.

Product research
The reason why people on Amazon aren’t having success stories during the pandemic is due to product research.
To clarify why it is not a good investment to sell pandemic products in your eCommerce business, we will go over some basic product research concepts. These are: seasonality, competition, demand, profit margin.

Seasonality indicates whether a product will sell throughout the whole year. Or only during certain seasons.
If you want to grow a stable business, you must sell products that will generate a stable sales rate.
Right now, it feels like the pandemic is endless. However, the reality is that as the pandemic ends, so does the high season to sell pandemic products.

If you do some research with tools like Google Trends, it will show that there currently is a huge demand for pandemic products. However, the graphic also shows that before the pandemic, the demand was incredibly low.
For example, America has had between 12,000 to 61,000 deaths per year caused by influenza. Just as with COVID19, there is scientific evidence that Influenza transmission can be reduced by wearing a face mask. Although, the demand for face masks was low in previous years.
It is uncertain when the demand for pandemic products will go down again. Therefore, don't jeopardize your whole business. Either play it safe or create a strategy to avoid having a huge stock.

Pandemic products are currently top selling items on Amazon. In other words, there is a lot of competition in that category.
Keep in mind that the competition will influence how you set your prices. As well as, how successful your sales are

Amazon’s Restrictions to sell Pandemic Products

To ensure that essential products meet the quality requirements, and to prevent sellers from taking advantage of the situation. Amazon has set restrictions on selling pandemic products, such as:

1. May not include false or misleading statements on medical devices.
2. FDA logo can't be used
3. Use the “FDA cleared” or “FDA approved” only if it applies.
4. Must not use words like “COVID” or other words related to the pandemic.
5. Provide accurate product descriptions.

Besides these restrictions, sellers must also consent to Amazon’s Marketplace Fair Pricing Policy. This must happen before selling any essential products.
If sellers violate Amazon’s restrictions, they could face severe consequences.

1. Cancellation or removal of listings
2. Suspension of selling privileges
3. Limitations on listings allowed

At Project Nine University, you can find plenty of free resources to learn more about how to improve your sales and profit in the eCommerce industry. Reach out to us for help. We are here for you!

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Disclaimer: We do not guarantee that you will achieve results or earn any money using the information we provide. Like any business venture, hard work and effort are required. The successes shown are not typical, and are self reported. You should not expect to achieve similar results. In fact, most clients make little to no money. Use caution and always consult your accountant, lawyer or professional advisor before making any decision concerning your business, investment or finances.