Helpful Guides

For many beginners to the Amazon FBA journey, the MOQ terminology is unfamiliar. So in this simplified blog post, I’ll define and share my experiences.

I’ll also show why MOQ’s are important, why Chinese suppliers set these for Amazon sellers and how to meet these. Most importantly, I’ll highlight how you can start negotiating for lower MOQs. 😉

MOQ means Minimum Order Quantity

As you’re new to sourcing and importing products, let me guide you here.

MOQ stands for Minimum Order Quantity. It’s essentially the lowest amount of products or units that a factory would be willing to produce. The reason they do this is to cover their production costs.

For example, a Chinese supplier might realize that producing just 300 units at their normal price is break-even. Since a production run takes several hours of setup and coordination. So they might set their MOQ at 500 units which you’ll typically find on Alibaba.

Others don’t use a unit count, but a dollar amount. This is more rare, but some might say “You’ll need to order at least $10,000 sir” when you’re communicating. Certainly this is more common with the wholesale strategy, but this article pertains to private label selling on Amazon.

Each supplier is different. This is because products vary massively. Some might even say 2,000 units or 5,000 units. Others might say a full 40ft container minimum.

Minimums from suppliers is a good thing. It ensures that they remain profitable for the long term. Success should be found for both your Amazon business, but your suppliers business too.

You can best meet MOQs for your Amazon business but choosing a product that fits within your launching budget. Avoid oversized products such as outdoor tables, as while the MOQ might only be 200, you probably can’t afford the $90 unit cost. I also advise beginners to start with something simple, before building up the courage for big products.

Negotiating MOQs

The best part! This is where we can negotiate our MOQ. Because your Chinese supplier might say that theirs is 500, but you can only afford 300 to get your product off the ground.

Some ideas are:

• Do a split-order. If the MOQ is 500 units, then say you’ll order 250 today and 250 next month.
• Claim that you don’t have the space to store 500 units, which has some truth to it, as Amazon’s warehouses do charge you storage fees.
• Crowd-fund or pre-sell orders. This has become very popular with websites such as Kickstarter
• Ask if they have lower-quality materials if they will still represent a good quality product. This won’t reduce the MOQ, but can reduce the unit price.
• Offer to pay more money. Say it’s $10/unit for 500 units. Propose you’ll pay $12/unit for 100 units, so you can get started for $1,200.
• My personal favourite: Say that you’re testing a new product range and unsure if your market will like your offering. Promise future orders if successful.

Ruslan Kogan, the creator of Kogan.com actually negotiated one of his first ever orders of televisions. With no real business experience or customer database. He simply went and re-wrote the poor-quality English information on a supplier’s Alibaba page, who then subsequently won a massive USA contract weeks later. They provided Ruslan with anything he wanted (best pricing, 1st on production line, super low MOQ) after that. One solid idea if you’re good with English.

Things to look out for

Often people do want a lower MOQ than advertised. Most people have limited starting capital to start their new Amazon FBA business. So, it’s tempting, but there’s 2 issues:

1. Suppliers will often compromise on the quality of products, because they are already at cut-throat profits and need to make up the margin.
2. They might reject the future chance to do business with you, as they have existing customers who always meet those MOQs.

So please be understanding of these characteristics. You should want success for your factory, as much as you want for your own business. It’s a two-way street.

In summary

MOQs are a fundamental part of your sourcing experiences when launching your new Amazon FBA business. It’s wise to abide by them and choose products that can fit within your budget and supplier MOQs.

Always be willing to find a different supplier if things aren’t working out. If you decide to negotiate, then tread carefully to make sure the product quality is top-nitch.

There are plenty of people who aren’t realizing that you could end up becoming another Amazon business failure. So today, I’ll unpack the 7 core reasons.

Since it’s all too easy to get dazzled by the shiny lights of the next whizzbang course that comes along. I should know – I’ve taken several. I’ve also lost money more than once on Amazon as a seller.

Amazon business failure – A real hazard

It isn’t easy. I’ve said this here on the blog many, many times. But if you’re willing to put in the work, then there are some incredible rewards available for those who get through the hard times.

So before you enter the Amazon marketplace, consider these 7 things that could easily happen to you.

1. You run out of cash and quit

This is the most common reason why people quit. You can’t get started properly on Amazon with just a few thousand dollars. You simply cannot get started with a few hundred dollars.

You’ve found a business model with excellent upsides. But a key downside is the capital required. $5,000 MINIMUM and $10,000 ideally. Plus ongoing investment into more inventory. Don’t quit your job. You might even lose every single dollar you invest into launching a product, for one reason or another.

2. You just don’t have the time

Easily the 2nd most known reason why people don’t progress with their Amazon journey – time. It’s also the #1 reason why people want to get started on this journey – time.

You’ll be doing a range of tasks. Product research, selection, contacting manufacturers, freight forwarders, attending trade fairs and more. That’s before you even get a product on Amazon. Plenty of tasks to do, before making that first $1 online.

3. The fear makes you quit FBA

After you’ve gotten over the fear of buying that Amazon course you’ve been eyeing off for months, then there’s the fear of becoming an Amazon seller. You know – your products being in the hands of thousands of people worldwide.

It’s a scary thought – you’ll send money to China. They’ll create a product that you’ll never see in person. They’ll then send that to the United States, to sell to customers you’ll never meet. If all works out well (*fingers crossed*) you’ll net 30% for your risk, if you’re lucky.

4. You aren’t serious about your business

This isn’t a hobby to do, but some people pitch it like this. It’s a real business with real products. Just because it’s online makes no difference.

You need to have a firmly cemeted reason why you’re doing this. Then you need to be around the right community. Feed your mindset, work on your journey every week and continue to power through the low times.

5. You lose interest in selling on Amazon

Whilst not so popular, I’m surprised that people do lose interest in becoming an Amazon seller. Do these people not want freedom? Or perhaps they have won the lottery. 😃 I don’t consider this an Amazon business failure, but often a reason why the individual doesn’t continue.

This goes back to being fully invested in the journey. That starts with getting trained properly, instead of winging it with free YouTube videos which teach so little.

6. You’re just in for short term results

Argh! Too often people reach out asking how much they’ll be making in 6 months time. They haven’t even taken a course yet, or even thought about a product. As I often say, don’t expect to make anything for the first 12 months at all.

Amazon is a long game. Some of the best courses talk about this. It’s a game for those who will stick around for years. To grow their business using its profits.

7. You pick the wrong product

There is a talent that comes from effective product research. I should know – I’ve done thousands of hours. Some of the most obscure and profitable products have been discovered through my strategy.

Many people who try this journey on their own often pick the wrong product. Another key reason to get trained properly, as this is one very expensive mistake.

In summary

I really do feel that Amazon is a marketplace for the outstanding and the committed. It isn’t for the average person with an average product, since competition is becoming rife.

I have a lot of respect for people who quit the journey for valid reasons too. This is known as strategic quitting.

Not everyone will find success here. This is especially true if you’re short-sighted on the journey.

There is a dip on the entrepreneurial journey. Staying dedicated will help you power through the hard times, to make progress when others would otherwise become another Amazon business failure.

I look forward to continuing to support those who support this blog and my journey.

How does the new Amazon IP Accelerator Program work for private label FBA sellers? Will it help you quickly get brand registry? Seems like great news to me.

If you’re an Amazon seller, no doubt you know about one of the biggest issues that we face – the long waiting period (up to 12 months) to file a successful trademark and gain the benefits. If you’ve missed the recent announcement from Amazon themselves, I’ll outlay the basic details here.

Amazon IP Accelerator program

Amazon’s recently launched IP Accelerator program is free for professional sellers, providing them access to a network of excellent intellectual property lawyers who have already been vetted. This network has been curated, with pre-negotiated rates.

It seems that this network is for trademark registration of your trading name. That said, I’m sure there will be opportunities for patent and copyright lodgement too.

More details directly on Amazon: https://sellercentral.amazon.com/forums/t/amazon-intellectual-property-accelerator/511783

I found some interesting quotes in there:

Amazon will provide these brands with accelerated access to brand protections in Amazon’s stores, to better protect their brand months, or even years, before their trademark registration officially issues

Amazon.com

and…

Amazon does not charge businesses to use IP Accelerator—they only pay their law firm for the work performed at the pre-negotiated rates

Amazon.com

…which is great news! I’m curious to see what the pricing is with the IP Accelerator program.

In addition, you may have also heard that applicants that are not based in the United States must use a US-based attorney. This was a recent change and seems to coincide with this launch.

This could really be a turning point for the sellers who are up against the Chinese. As you probably know, competition is becoming greater on Amazon over the last few years, from all parts of the globe.

How does the IP Accelerator benefit me?

It will generally mean that you get access to Enhanced Brand Content through their Brand Registry program a lot faster. Not only that, you can kick off the hijackers a lot more quickly.

Amazon no doubt released this in response to a massive backlog of customer service queries regarding listing counterfeiters. The “lodge a trademark and wait 12 months” just wasn’t cutting it for most sellers, whether beginners or experienced.

But then this easier path to EBC could lead to a greater amount of fake applications of brands that hold no real weight. Both the higher barrier of entry, of both time and money, stopped a lot of competitors from upgrading to the higher levels of privileges within Amazon’s seller platform.

At this stage, we’ll have to play the waiting game. I’m continuing to use my US-based attorney who charges north of $4,000 per trademark, but I have the assiduity of things being done properly. Two brands this year already.

In summary

If you’re ready to join the Amazon IP Accelerator, you can do so here.

This program has been created for existing sellers who already have some sales velocity. Those who haven’t sold on Amazon yet should get educated and work on that 1st product launch. I enjoy sharing my free guides for beginners.

Trademarks are extremely important, even if you only aspire towards a part-time income. But securing one is both expensive and a long drawn-out process, sometimes taking years.

Amazon seems to have come to the rescue for sellers…for once! 😅 Understandably, many are skeptical as to the longterm success of this program.

This is just one of the many aspects of becoming a successful marketplace seller. Stay the course, think long term and protect your castle through building a big moat. A strong trademark is a cheap insurance policy.

Many people are on the lookout for some cheap Amazon products to launch and sell via FBA. After all, it’s a safe and effective way to learn the ropes.

So in this post, I’ll be showcasing some of the cheapest Amazon FBA products that you can source for less than $900. You’ll need to add freight, duties, Amazon fees, refunds, packaging, barcode costs and miscellaneous expenses on to each product.

It’s my intention that this list helps you with finding that 1st product, which creates the first-sale feeling. This way, you can create the belief that this business is possible, even for someone with very limited experience.

Cheapest products to sell on Amazon FBA

There are actually hundreds of cheap products that you can launch on Amazon FBA. I’ve done a lot of product research over the years in the gold mine.

Disclaimer: I’m an Amazon seller with several years experience now. From this, I’ve come to learn that you need MINIMUM $5,000 and ideally $10,000 to launch a product successfully. This guide is only showcasing some tester products, where you can send in just a few units to learn the process, and does not imply you can build a successful business with a full-time income with just $900.

Many people come to my blog after hearing about the Amazon dream. ‘Quit the rat race’ or ‘live life on your terms’ as these courses often promote.

Only that some courses claim that you can make a full-time income starting with less than $5,000. Let me tell you – that is complete BS.

Starting on Amazon isn’t cheap

Nope – there is a whole lot more than just buying those initial goods out of China.

Costs include:

• The investment in your education and conferences
• Tools and resources such as Jungle Scout and Helium 10
• Placing your first bulk product purchase (The biggest cost)
• Travelling to China to visit suppliers or the Canton Fair
• Freight to get your product from overseas to Amazon FBA
• Third-party validation services such as V-Trust for verification
• Import duties, taxes and Tariff increases (Gee – thanks Trump!)
• …and a whole host of high Amazon fees that they charge you too!

Then after all that, 5% of your customers will ask for a refund. Indeed not a cheap business to get into. Nor is it a business for cheap people either.

I’ve personally poured tens of thousands of dollars into my 2 Amazon FBA businesses. I don’t sell cheap stuff.

But there is some of you that have the dream. You want to learn, bit by bit. You’re on a budget. If that’s the case – then this cheap Amazon FBA products list is for you, to learn the ropes, before you go further.

Here’s the list

In creating this, I’ve chosen only small products that you can airfreight straight to FBA. It’s significantly easier and faster than sea freight. Each product is small, less than the size of a shoe. Also, for $900, you’re only going to order less than 100 and in some cases less than 50, if your supplier permits a low MOQ that is.

Here we go:

1. Men’s slim wallet
2. Airpod’s leather case
3. Women’s high socks
4. Water-proof key storage case (for boaters)
5. Binoculars case
6. Mascara brushes
7. Small stuffed Santa plush toy
8. Surfing board leash
9. Aqua socks
10. Motorcycle wrist brace
11. Inflatable bath toy
12. Hand soap dispenser
13. Couples necklace
14. Happy birthday signage
15. Christmas cake topper
16. Chair surface protectors
17. Rectangular shower drain
18. Flower spoons
19. Dog picture frame
20. Weekly medical pillbox
21. Swimming goggles
22. Home winebar sign
23. 6-pack golf balls
24. Bulk wedding invitation cards
25. Fridge thermometer
26. Car blind spot mirror
27. Organic peppermint tea
28. Workplace safety vest
29. Children’s snow gloves
30. Wardrobe hooks
31. Table tennis set
32. Receptionist desk calendar
33. Organic baby sleeping bag
34. Yoga stretching strap
35. Pencil sharpener
36. Mouse pad
37. Toilet roll dispenser
38. Gym workout chalk
39. Cardboard knife
40. Dish cleaning gloves
41. Stainless steel water bottle
42. Camping spork
43. Tradesman level sight
44. Yoga mat spray
45. Unique USB flash drive
46. Women’s vegan purse
47. Sunglasses for water sports
48. Car ashtray
49. Winter scarf
50. Bicycle warning lights
51. Surf lock box
52. Heat-proof gloves

…there’s certainly plenty more out there in the gold mine, but I hope that gives you some direction!

Suppliers can readily be found on Alibaba and other sites. Also consider sourcing from outside of China, with India being a prime spot to source cheap Amazon FBA products to sell.

In closing

You will be competing with the Chinese for most of these products. All these sellers are in the low-end of town. This is why private-labelling and brand building is very much talked about through professional Amazon selling communities, so we get the edge on those competitors.

Just use this list as a guide to get that first sale on Amazon. As mentioned, you’ll need a low MOQ and it could be as little as 20 units to get yourself started. Avoid any competitive niches and go deeper.

For example, instead of ‘mouse pad’, drill down to ‘girls pink mouse pad’ because a lot of teenage girls may want a pink mousepad for homework after school, since laptop trackpads can be challenging.

Finally – play the long game. Getting that first sale is an accomplishment for sure, but just one step in the big journey that is Amazon.

Becoming an Amazon FBA seller changed my life. I hope it can change yours too!