> For the complete documentation index, see [llms.txt](https://sourcesheets.gitbook.io/sourcesheets-new-seller-blueprint/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sourcesheets.gitbook.io/sourcesheets-new-seller-blueprint/part-4-sourcing-and-buying-your-first-products/7.6.4-case-study-4-passes-every-gate-except-compliance.md).

# Case Study 4: Passes Every Gate Except Compliance

From a sourcing perspective, this product behaves exactly how we want it to. Buy cost is £8.20, it sells for £13.99, a profit of £2.05 a unit at a 25% ROI, both clear of the Gate 1 and Gate 2 floors. Sales run at around 60 units a month, clearing Gate 3, and pricing has remained relatively stable over the last 30 days, comfortably inside the Gate 4 band. Competition is present but not aggressive, 5 active offers, well under the Gate 6 ceiling, with no obvious Amazon interference, clear of Gate 5. Judged purely on Gates 1 through 6, it passes comfortably.

## What Stops It (Gate 7)

Despite everything lining up commercially, the listing is flagged for hazmat / dangerous goods compliance. This immediately changes the decision. Compliance flags introduce uncertainty, delays, additional requirements, and in some cases permanent selling limitations. For beginners especially, these flags aren't something to figure out later, they must be resolved before purchasing stock, not after. Hazmat is treated as an automatic Gate 7 hard stop in this Blueprint, regardless of how the numbers behind it look.

> 📸 **Screenshot needed:** the hazmat/compliance flag as it actually appears in the ASIN Analyser

## Why This Matters

This is a classic example of why the gates exist. Without a hard compliance stop, products like this are easy to green-light emotionally because everything else looks so clean. Amazon doesn't weigh positives against negatives. One unresolved restriction is enough to block sales entirely, regardless of how good the opportunity looks on paper.

## Core Lesson

If a product fails on compliance, hazmat, or restricted-selling rules, the correct action is to stop, not to hope. These checks protect you from tying up capital in stock that may never be sellable, and no amount of good data elsewhere overrides that reality.