Skip the Spoilage: 5 Grocery Categories to Skip as an Amazon Seller

The Amazon Grocery category is a goldmine for sellers, offering a massive audience and the potential for significant profits (check out my previous post, From Pantry to Profits: 5 Moneymaking Grocery Categories for Amazon Sellers for some hot tips!). But just like any other marketplace, trying to sell some products can be a recipe for disaster.

Before you stock your virtual or literal shelves, it’s crucial to understand which grocery items might not be the best fit to sell on Amazon. Here are 5 categories to avoid, along with some alternative ideas to keep your bottom line healthy and your customers happy:

1. Fresh Produce: Fresh produce has an extremely short shelf life and can be easily damaged during shipping, which can lead to high return rates, dissatisfied customers, and a hit to your seller reputation. If you want to sell produce, consider selling shelf-stable or dried versions of the produce (ex. banana chips vs fresh bananas).

2. Meat and Seafood: Similar to fresh produce, meat and seafood have strict temperature requirements and are highly perishable. Maintaining proper cold chain logistics during storage and transportation significantly increases costs and complexity, making it difficult to achieve profitability. Explore selling shelf-stable or frozen meat alternatives, like jerky, cured meats, or even frozen seafood options, just ensure you are using proper supplies when shipping to Amazon or your customer directly. Ice packs and insulated shipping supplies will ensure your items arrive at the proper temperature. You can also consider selling pre-marinated and seasoned meat packs that have a longer shelf life and require minimal preparation.

3. Bakery Items: Bakery items like bread, pastries, and cakes are delicate and prone to damage during transit. Maintaining their freshness and structural integrity over long distances is nearly impossible, leading to customer dissatisfaction and potential product waste. Consider selling dry baking mixes, baking ingredients with a longer shelf life like flour, sugar, and chocolate chips, or shelf-stable baked goods like cookies and crackers (make sure to package correctly to avoid your customers receiving a crumbled mess).

4. Meltable Items: These include items like chocolate bars or chips, caramels and gummies. As a rule, I try to stay away from these items, due to the risk of them arriving damaged to customers (even with proper packaging), however, some sellers are comfortable selling meltables. If you plan to sell meltable items and ship them to customers directly, please ensure they are encased in insulated packaging, along with ice packs. If you are planning to send to Amazon for fulfillment, note they will accept meltable items, but only between October 16 and April 14. This is to minimize the risk of damage during storage or transportation due to high temperatures.

5. Bulk Items: While bulk items offer potential cost savings for customers, they present logistical challenges for sellers. The increased weight and size can significantly impact shipping costs, reducing your profit margin. Additionally, managing and storing large quantities of bulk items requires significant space and resources. Instead of selling bulk quantities, consider offering smaller, pre-portioned packages of the same items. This can attract customers who prefer convenience and prevent the need for extra storage space at home.

I hope you found this post helpful. By understanding these challenges and exploring alternative options, you can ensure your Amazon grocery business thrives and avoids the pitfalls of perishability, high costs, and unhappy customers. Remember, choosing the right products is crucial for success on Amazon, so stock your shelves wisely!