Millions with trend products as an Amazon FBA retailer? Opportunities, risks & real practical tips on Dubai chocolate and co.

When it comes to Amazon FBA, many people immediately think of quick profits from trendy products such as Dubai chocolate. But is the path with trendy products really as easy as it sometimes looks? In this article, I'll show you what trend products are, why they have a special dynamic and where the real risks lie for Amazon retailers. You'll also find out why a long-term successful Amazon business is rarely built on short-term hypes and how you can use trend waves wisely.

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What are trend products? Definition and typical features

A trend product is an item that suddenly becomes the focus of attention due to external influences such as social media, influencers, media reports or special promotions. Demand explodes, sales skyrocket and many people jump on the bandwagon. Dubai chocolate, coronavirus masks and solar panels are all classic examples.

Why do people buy such trendy products? We humans want to belong and try out what's hot at the moment. The "herd animal behavior" comes into its own here. Many people simply don't want to miss out on what others are testing or like.

Typical characteristics of trend products:

• Rapid hype through media or social networks
• Strong, often only temporary demand
• Many retailers get in at short notice
• High peak in sales, followed by a slump in demand
• Market normalizes again after some time

Visualization of a trend:
Imagine a steep curve that rises quickly (hype), reaches its maximum at one point (peak) and then falls just as steeply again (demand falls).

Examples from practice:

• Dubai chocolate is currently experiencing a huge hype, especially before Christmas
• During corona, demand for masks soared, but then ebbed away again rapidly
• Solar modules were booming thanks to subsidies and reporting before demand declined

Trend products are therefore usually in high demand in the short term. However, this demand is not sustainable.

Opportunities and risks of trend products on Amazon

Opportunities for retailers:

• Fast sales: trend products can generate very high sales in a very short time, often without a large marketing budget
• Low start-up investment: At the beginning, it is often enough to quickly purchase and list a product
• Industry examples: Masks during Corona, Dubai chocolate now, solar modules during their promotion

But where there is light, there is also shadow.

Risks for Amazon retailers:

• Peak difficult to calculate: Nobody knows when demand will reach its maximum and fall again
• Oversupply & price war: Many retailers enter the market at the same time, supply grows rapidly and the price war begins
• Storage costs & losses: If you sit on the goods, there is a risk of high losses due to storage costs and unsold products
• Regulations: Amazon can tighten rules or block listings for certain hype products (e.g. masks)
• Timing is critical: if you get in too late, you are sitting on the goods while demand is already declining

Overview: opportunities and risks of trend products

Essentially, if you want to be successful with trend products, you have to be lightning fast, react flexibly and clearly calculate the risk.

Own experiences as an Amazon FBA retailer: Winning and losing with hype products

I was involved in trend products myself during my time as a salesperson. During the Corona period, I was involved in several mask projects. Even financially in one of them - and yes, that made very good money at the beginning. It was the same with solar modules: I invested 300 to 400,000 euros and sales were great for a while.

But what happens when the hype is over? Take masks, for example: first there was an insane boom, everyone wanted to buy masks. Then suddenly the regulations change, Amazon tightens the rules and suddenly retailers are left sitting on their stocks by the dozen. Some end up with hundreds of thousands of masks and don't know what to do with them.

The timing is extremely difficult. I have experienced this peak myself. While everyone is earning, the temptation to order even more stock is great. But as soon as demand drops, you're stuck with the goods - I had to learn that myself. Solar modules also experienced an abrupt turnaround. First business was booming, then came the "hard cut". Suddenly sales dropped and the invested infrastructure became a burden.

If you don't like multitasking, you should stay away from too much risk. You have to make decisions quickly: is it worth buying more or is it the end? Emotions too often win out. The result: excess stock, losses and stress.

Practical tip: Never put all your eggs in one basket when it comes to trend products. Don't build up huge stocks and don't hire a team just to chase the hype.

Timing and warehousing: the difference between profit and loss

The right timing plays the biggest role for trend products. A trend product such as Dubai chocolate sells particularly well in the run-up to Christmas. However, demand can drop again in January or February.

These are the basic rules:

• Position trend products so that they are available during the peak phase
• Reduce stock gradually after the peak and do not reorder under any circumstances
• Do not build up long-term capacities: Office, employees or machines especially for trend products rarely pay off
• Better to order too little than too much

When demand drops off, expensive leftover stock quickly remains. Anyone still storing large quantities of Dubai chocolate after Christmas, for example, must expect significant losses.

Practical tip: Trend products can be sold "on sight". If possible, do not enter into long-term contracts and remain flexible. The faster the product is gone, the lower the risk.

Sustainability in the Amazon business: Why trend products are rarely the basis

The quick euro appeals to many, but trend products rarely become a real business in the long term. The reason: trend products depend heavily on external factors. Social media influencers, government funding programs or short-term hype determine success or demise.

Once the hype is over, sales also plummet. A sustainable company with employees and stable processes can hardly be built on this basis. If sales of a product suddenly disappear, the entire structure - machines, personnel, processes - immediately becomes a cost trap.

Comparison: trend product vs. evergreen

Important recommendations:

• No development of long-term structures based on trend products
• See trend products at most as a capital booster that can be used to finance further growth
• For a sustainable Amazon business, it is better to focus on "boring" but reliable products
• Only approach trend products if the risk and inventory commitment are very low

Key message: Building a long-term company on trend products is like building a house on sand. As soon as the trend is over, the supporting pillars are missing.

Conclusion and clear recommendations for Amazon FBA retailers

To summarize: Trend products can bring great profits for a short time, but involve high risks. For 95 percent of Amazon retailers, it is hardly worth getting started. If you are aiming for sustainable online retail, you should focus on stable, predictable products.

What to do if a trend is still appealing?

• React quickly and only buy as much as can be sold safely
• Avoid large stocks and sell off immediately when demand decreases
• Do not build a long-term infrastructure - employees, machines or marketing only if the trend is calculable
• Rather use profits to build the next stable business

Do's & Don'ts for trend products on Amazon:

1. Do: Only use trend products for short-term gains.
2. Do: Be flexible, keep costs and stock low.
3. Don't: Rely on hype as the basis of your business.
4. Don't: Build structures around a trend.
5. Do: Invest profits in sustainable products.

If you want to make your Amazon business successful in the long term, you will find many more tips and professional support at Stacvalley Listing and Photo Coaching.

Bonus: Dubai chocolate as a current example of a trend

Dubai chocolate is currently one of the hottest trending products on Amazon. Sales are skyrocketing, especially before Christmas. Everyone wants a slice of the cake and the hysteria is huge. This is a lesson in how quickly such products can go through the roof - and how quickly things can go downhill afterwards.

The mechanism is always similar: a new hype, everyone jumps on it, demand increases, then the second wave of retailers follows. In the end, however, the market remains saturated and many sit on their goods.

Those who react quickly here can take profits - but the majority usually lose out. Don't be blinded by sales fever, but remain vigilant and realistic.

Conclusion: A trendy product like Dubai chocolate can be fun and fill your account in the short term, but it is the wrong choice as a permanent basis.

Not in the mood for quick hype? With well thought-out product strategies, strong images and clever listings, you can build a more sustainable business today. Stacvalley shows you how to do this reliably.

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