When Jeff Bezos introduced us to the world of Amazon, we had little idea it was about to transform the traditional shopping experience. These days, Amazon has practically become synonymous with ecommerce. And rightfully so. Its personalization ability, shipping via FBA (Fulfillment by Amazon), and detailed business reports are a couple of features that make things easier for buyers and sellers.
Since 2000, Amazon has helped businesses increase their sales and reach new customers. Selling through Amazon Marketplaces represents over 50% of all items sold across the globe. In fact, some entities have even made $5000 in one hour on Amazon!
Given the number, it’s no wonder you want to sell your products on Amazon too. However, this can be a little tricky.
Amazon sells more than 3000 million individual products. You can only become a successful seller if your product fits the site criteria. It should be less risky and must hold the chance of a high ROI (Return on Investment).
Here are five pointers for you when it comes to narrowing the search on Amazon product selection:
- Discover Products in Affordable Range
The best-selling products find a perfect spot between expensive and inexpensive. Currently, it lies somewhere between $20 and $50 (unless you’re selling a luxury or tech item).
Your pricing strategy should be dead simple and lead with the customer in mind. Amazon will provide you all the necessary info about the best products to sell on Amazon. Use it to make sense of the market trends and products that sell. You must figure out what makes an item profitable to sell. Does the shipping weight make a difference? How prevalent are such things? What is the intensity of the competition?
Typically, moderately-priced products tend to have a higher rate of impulsive purchase as compared to expensive ones. In general, there are two variables you need to consider for the products you sell on Amazon:
- You want it to be profitable (find the lowest price)
- You want to amplify your profits (find the highest possible price)
Striking a balance between the two is your gateway to generate a decent income. For example, books can be a viable option to sell on the platform. You can buy them in bulk and sell them for an impressive profit.
- Research Products in a Niche Market
Start your research on the best-selling items in a specific category. Ideally, once you explore a group and further listings underneath, you can put the finger on the niche you want to pursue. When you check out the best products to sell on Amazon, you can also go through the “customers also bought” section to gain insight.
When you have prepared a list of items to sell, you can later check the Google keyword planner to find if those products have a plausible search volume. You can also use the Sellerapp’s product intelligence tool, designed for Amazon.
Besides this, several chrome extensions help to conduct keyword research on Amazon.
- Jungle Scout will help you find and validate product ideas while browsing Amazon. It displays monthly sales volumes on products and displays those with low competition.
- Unicorn Smasher helps to gather estimated monthly sales and revenue for Amazon products.
There are many other useful Amazon seller chrome extensions available for businesses and budgets of all sizes. We recommend you try a few to find the best ones for your needs.
- Check for Competition
An ordinary organic search will enable you to find a gap on Amazon. For instance, when you search “women earrings,” there may be more than a 100, 000 results. But when you search “women earrings in metal,” there are only 1000 results.
Alternatively, you can find a gap in the market by checking customer reviews in a specific category. This is the key to have your products stick to page one – researching the competition around you. It is quite simple to evaluate. Simply search for the top three keywords of your product and review the pricing as well as purchase stats of search results that appear on page one.
To bring in profits, make sure you price the product within the profit margin. It should be in demand and offer easy shipping. To sum it up, the following are a few factors to determine the best products to sell on Amazon, with least competition:
- It is not currently sold by major Amazon sellers
- Items like this have Amazon’s Best Seller Rank (BSR) of 5000 or below
- Its leading keywords do not have over 10, 000 searches per month
- Products like this have less than 50 reviews
You might be surprised to know that right now; the top selling items are all below $17. These include a basic sleeveless tank top and high-waisted leggings in a range of 25 colors.
- Ensure it’s Light and Small
A heavy product charges more for shipping as compared to an item with less weight. Along with the mass, the size of a product matters too. Larger items will increase the price and eventually cut your profit margin. The product you opt for selling should be small and light. This makes the FBA prices more manageable.
Moreover, you can participate in FBA Small and Light. It is an additional fulfillment solution with Fulfilment by Amazon (FBA) for your fast-moving, small and lightweight products. The criteria designed for such products are:
- It should be less than 225 g
- Not listed on FBA prohibited products
- It should be in good condition
Source – this is how Amazon categorizes based on size
With these, there are other location-specific criteria you must analyze before choosing the product. Items sold by Bn3th are a classic example of small and lightweight products that sell on Amazon.
Note that you must not go too light or too small. You don’t want the package to crush by a heavy item falling over it. This can also be a risk when you choose a product with fragile inner parts like glass or electronic items. In order for the item to fall into the category of the best products to sell on Amazon, it should be durable, sturdy, and easy to carry.
- Select Your Source for Products
Once you have listed the products to sell on Amazon, start looking at the wholesale source options for the product. Here are the two places to begin your search from:
- Alibaba – Alibaba is the place from where you can source inexpensive items. It also assists you in learning about product sourcing. This works pretty well for the newbies on Amazon.
- Wholesale Marketplaces – There are wholesale markets in practically every city of the US. Google and figure out if the product you picked is available in these markets.
It would be best if you kept looking until you find products that you can easily arrange for.
Without a doubt, one can gain incredible profits by selling on Amazon. If you know how to define a clear-cut product strategy and can implement it effectively, you can definitely make the cut. Make sure the product you sell is of value.
We hope the tips above will help you understand the criteria and find a niche segment with a broader demographic structure. Happy Selling!