The risks or rewards of selling electronics on Amazon

I recently found your podcast on Spotify so please excuse me if this has been addressed already, I have a lot of catching up to do!

I live in Australia and am researching a home electrical appliance to be sold through Amazon Australia FBA. I believe there is a high demand and little competition particularly from sellers native to Australia.

Before I do the hard numbers I would like to know your thoughts on whether an electrical product is too ambitious for a new seller to take on ie. Is the risk of potential electrical defects worth the monetary risk with returns and refunds? To clarify, the product would be sourced from China.

Can you advise on any other risks or rewards you may be aware of when importing such a product? Have you done so yourself? Would love to hear from you.

Thank you for what you do. I really enjoy listening to your podcast. Please feel free to air this if you wish.

Regards
Carly

Thank you so much for the question Carly
Let’s talk about the good, the bad, and things to know

You say you will be importing from China, so I’m assuming you are doing private label.
That makes things easier for you because you will not be dealing with brand restrictions or used deficient items.

Selling electric products can be a huge moneymaker because everyone loves buying them.
Make sure the order gets inspected and also let the vendor in China know that you want any broken or defective returns to be free in your next order.

Make sure they are protected for the Amazon drop test (6-foot drop test) nicely packaged and protected.
Try to have a humidity-resistant package if the product is sensitive to moisture

If the product is rechargeable, it will have a built-in battery, therefore Amazon will ask you for a dangerous goods form. A Hazmat form.

At the time of filling your FBA shipping form, they will give you a form to fill, but that can delay you a week or 2, so do that early.

The electronic category is very competitive (mainly because the sales are good), but the majority of sellers will never get to page 1 unless they find a niche inside the niche. IE an addon to a product that everyone has (not cellphones lol)

Electric products are exclusive to each platform because of power settings in each country.

For example, an American DVD player will not work in Europe unless they buy an adapter.
Because one has 110V the other has 220V and the plugs are different too.

And of course the same applies to Australia. The main voltage in Australia is 230V 50Hz, so make sure to let the manufacturer know it’s for Australia and even send them a picture of your plugs. Also, make sure to get a sample.

And one of the most important things to know is Australian law.
There are 3 levels of electric equipment. (and for simplicity they are called level 1, level 2, and level 3)

In 2013 or 14 the (EESS) in Queensland, introduced some new rules about importing electric equipment into Australia, and then those rules spread to Western Au Too.

EESS is (Electrical Equipment Safety System)

Please make sure to read about it on the Electrical Regulatory Authorities Council

Thanks

Quin Amorim