A product can sell well on Amazon and still make very little financial sense. Gr
By Byoungsfl · October 27, 2026 · Curated by George's Blog
A product can sell well on Amazon and still make very little financial sense.
Grocery is a perfect example.
We've generated millions in Amazon sales, but grocery is one category we've never personally entered.
Not because the demand isn't there.
Because the fulfillment economics can get complicated very quickly.
Consider a few of the challenges.
Meltable products can face seasonal restrictions in Amazon's fulfillment network.
Products requiring refrigeration aren't suitable for standard FBA fulfillment.
Glass packaging requires additional protection, which can increase packaging and shipping costs.
And heavy products can carry substantial fulfillment expenses relative to their retail price.
These factors matter when you're evaluating whether a product is worth launching.
But there's another way to think about it.
One of my students sells bottled water.
Even when selling by the case, the cost of fulfillment is significant.
Yet Amazon still has a role in their strategy.
It's a customer acquisition and brand discovery channel.
Someone finds the product on Amazon, becomes familiar with the brand, and may later purchase through another channel.
That could be the brand's own website or a retail distributor.
And that's where I think sellers need to broaden their thinking.
Amazon doesn't always have to be your primary distribution channel.
For certain products, it might be a way to introduce customers to your brand while other channels provide a more sustainable fulfillment model.
Of course, you still need to understand the costs of acquiring those customers and whether the strategy makes financial sense.
The bigger lesson is that product research isn't just about identifying demand.
It's about understanding the economics of getting that product into the customer's hands.
Before entering a category, ask yourself:
Is Amazon the best place to fulfill this product, or simply one of the best places for customers to discover it?
#AmazonFBA #AmazonSeller #EcommerceStrategy #AmazonGrocery #BrandBuilding #ProductDevelopment