Finding A Best Selling Product To Sell On Amazon
Finally, you are pulling the trigger and want to start selling on Amazon or perhaps sourcing for new product ideas. How do you know for sure that your product is actually going to perform and sell out on Amazon? Fear not! I’m going to walk you through the process of sourcing a good product that is going to be profitable once it’s listed on Amazon.
Here are the criteria of good and bad products that you need to be aware of:
- Existing Consistent Demand / Low Seasonality – You want a product that is going to sell consistently all year long and not seasonal stuff, (for instance, Halloween costumes).
- Small and Lightweight – The bigger and heavier it is, the more it costs to ship, not to mention higher storage fees.
- Good Margins – Products with 100% or higher markups (at least 50% margin) are the way to go. You need to take into consideration Amazon fees, advertising, and product costs so you will be able to reorder again without cutting yourself short.
- Niche Products – Be specific with the product you want to sell. For instance, you’d want to sell “Aberdeen fishing hook for sea bass” instead of just “fishing hooks” or “fishing hook for sea bass”.
- Selling Price of $12 to $99 – Anything higher will take you a lot of capital to get started but you can certainly try, just know it’s just going to be riskier. Lower price points also target impulse buyers meaning less consideration when buying a $15 product compared to buying a $150 product.
- Less Than 1,000 Reviews – Generally, products with more than 1,000 reviews are proven to be very competitive (due to loyal customers) and it’s wise to navigate away from that territory.
- Trademarked – Never buy anything with a trademark on it else you’ll take the risk of being sued. Counterfeit products or other US trademark products such as Disney toys is a no-go zone.
- Multiple Power-sellers Selling Large Volume – If you’re thinking about selling bluetooth sports earphones, don’t pick earphones that have multiple power-sellers who sell thousands of units a month already. You don’t want to be competing in the red ocean.
- Fragile – Best to avoid products such as glasses are fragile and require best practices when shipping to Amazon and to customers. Again, you can try but keep in mind it’s riskier.
- Mechanical and Demand Great Warranties – You definitely don’t want to be dealing with products with hydraulics or complex machinery as they require warranties and are more prone to breaking down.
Note: These are just my recommendations based on previous experiences. I’m sure there is money to be made in products that break every guideline above, in the end, it’s up to you to make the decision.
Now that you know what determines a great product, let’s begin our search. I suggest starting from list of Amazon Best Sellers or Amazon Movers & Shakers to get a rough idea of what you would like to sell. You want to sell a product that you would use as well so you have an idea of who your customer is.
There are lots of online tools you can utilize for advanced product research and one of them is ZonGuru’s Chrome Extension. With this extension, you get a complete look at an entire product category in seconds without needing to navigate away from Amazon. You can also filter results based on the above guidelines (price and reviews) to remove underperforming listings.
Pro Tip: Depending on which marketplace you are researching, the level of demand and competition may vary.
Keep in mind to record all your work in a spreadsheet to keep track of different niches you’ve found. Download the sample spreadsheet that I’ve created or you could create your own.
A few questions to ask yourself when searching for your product:
- Can the product be improved? – This is one way to steer yourself from existing competitors. A great way to find out if a product can be improved is to look at competitors’ negative reviews. Read what their customers think can be improved and you have your answers there.
- Can the product be bundled? – This is another way to improve the product and for you to get creative. For instance, if you are selling stainless steel garlic press, you could bundle it with a free recipe book that customers can download.
- Can the product be private labelled? – Another advance tactic I strongly suggest is to go down the private labelling route. This is a great way to build your own brand and line of products and be in the game for the long haul. Most products in a marketplace can be private labelled unless there is a patent on it … and as mentioned above … be wary going for trademarked products.
Take time to really think about each product and do your homework because this is going to be your investment in your future. Once you have decided on 3-5 products to try out, you can proceed to finding reliable suppliers and buy samples (or get them for Free depending on your negotiating skills). Best of success searching for your product to sell on Amazon.
Amazon Subscribe & Save: Increase FBA Sales & Profits
Amazon’s Subscribe & Save program, which has only been available for products shipped and sold exclusively by Amazon.com, is now available for FBA sellers in the following categories:
- Health & Baby Care
- Automotive Parts & Tools
- Home Tools & Home Improvement
- Industrial Supplies
- Lawn & Garden
- Musical Instruments
- Office Supplies
- Pet Supplies
The program allows FBA sellers to offer discounts on their products when a customer subscribes to that particular item. Customers are able to select the number of items they want delivered as well as the delivery frequency. The program is an effective way for FBA sellers to ensure returning customers and secure guaranteed monthly sales. Here’s an example of what sellers are able to add to their product.
What are the requirements to partake in Amazon’s Subscribe & Save?
To partake, you must have an FBA account that:
- Is in good standing
- Has a feedback rating of 4.7 or higher
- Has been active for 3 months or longer
You can enable Subscribe & Save in Seller Central under Settings > Fulfillment by Amazon > Subscription Settings. Once you have enabled your subscription settings, you can now add your offers. Learn more about it HERE.
Do keep in mind that poor performance metrics may result in the suspension or termination of your eligibility to partake in the program.
Pro Tip: If the option to enable Subscribe & Save is not available in your account settings, that means you are not eligible for the program.
Amazon Debuts ‘Instant Pickup’ In The US For Pickups Within Minutes
Amazon has launched Instant Pickups, its latest push into retail outlets, which will allow Prime and Prime Student users to instantly pick up “daily essential” orders at selected locations across the US.
This is the beginning of Amazon getting into the interesting niche of convenience store at these six fully-staffed locations: Berkeley (California), Los Angeles (California), Atlanta (Georgia), Columbus (Ohio), and College Park (Maryland). Amazon also has plans to add the program to more sites by the end of the year.
Customers on Amazon’s mobile app can select from several hundred fast-selling items at each location, from snacks and drinks to phone chargers and personal care items. Amazon employees then load orders into lockers within two minutes and customers receive barcodes to access them, quick and easy!
Instant Pickup puts Amazon in competition with vending machine services and brick-and-mortar retailers. The only question is whether or not Instant Pickup will expand much further. What are your thoughts on this?
Feel free to share your thoughts in the comment box below.
Eugene is an Amazon business coach, consultant, and blockchain enthusiast. He helps aspiring and established entrepreneurs build a highly profitable Amazon FBA business so they can unlock their true potential. Learn more about him at wiseintro.co/FreedomProfitsBlueprint