How to Choose a Profitable Product to Sell on Amazon FBA?
Amazon is a leading contender in the third-party marketplace industry. You can sell nearly anything and make a profit. However, doing so takes time, skill and dedication.
Amazon offers great quality and delivery, which is why consumers are so loyal to the company. Having Amazon on your side, organizing orders and handling behind-the-scenes work through Fulfillment by Amazon will undoubtedly attract more buyers and boost your sales.
So, let’s first take a look at what exactly is FBA?
It is an all-encompassing service designed specifically to meet your needs as a seller on Amazon, such as shipping items stored at fulfillment centers and handling customer service issues pertaining to orders.
However, the tricky part now is choosing a product that will sell. A product that actually has a high demand and probability for sales. How do you determine that?
Product Research and Its Importance
Product Research is key. As a Seller, you need to know what the demand and supply are for a certain product niche or category, even before you begin to source it, let alone sell it!
In fact, according to statistic and studies, more than 40 % of online business success depends on the right product being sourced. Now that is a huge chunk that can make or break the success of a product. Hence why it must not be taken lightly.
Product Research Criteria
Every research strategy must employ a set of criterions that the findings rely upon. The same applies to research for your products. The two major criteria to focus upon are:
- High demand, low competition
- Low demand, low competition
- High demand, high competition
In either case, studying your competition in the niche or category of your product is crucial. Your competition is your treasure-chest of knowledge. Use it!
Analyzing your competitors enables you to devise your marketing, sales, operations and customer service strategy in the right direction without hitting roadblocks. Knowing your competition is like driving with a GPS – you can navigate yourself even from the tightest of spots if you know where you are.
Naturally, as an Amazon seller, you won’t bother with any product that has ‘low’ demand. Because anything with low demand will automatically also have low competition (since nobody is silly enough to invest their time, energy and costs in sourcing low demand products that nobody wants). This eliminates the option (B) automatically.
So logically, a smart Amazon seller will target options (A) and ( C) through the life cycle of his / her Amazon FBA business.
Important Factors in Criteria Selection for Products Selection
Research To Find What Is Already Selling On Amazon
One of the fastest ways to learn how to find a product to sell on Amazon is to look through the Amazon Best Sellers List in different categories to find out what is already selling.
By looking through the Amazon Best Sellers List, you’re able to get an idea of the top 100 products that are currently selling on Amazon, to give you ideas on what products to sell.
Using Online Tools
If you’re looking for some tools or resources to help you how to find a product to sell on Amazon, then a good platform is Jungle Scout. It is a powerful software that will make your life much easier in helping you do all the research you need to find profitable products – it’s worth the investment.
Criteria Selection Process
However, if you want to find the best products to sell on Amazon, then you need to look at more than just something that you are interested in promoting.
The deeper you look at how you will sell your products, the easier it will be to begin to make the sales you want to build your sales.
It’s not only the product you want to look at selling. It’s also how you will sell it and who you will reach. When you start following a different criterion, then it will help you to build a successful promotional channel.
The criteria consist of the following:
- Make sure the product is light and relatively small (not more than a few pounds), as this will make a big difference in the cost of shipping your product.
- Find a product you can sell for more than $10 and will have at least a 30-50% profit margin.
- Find a product that is simple and won’t break easily or have complications, as otherwise, it can result in refunds or customer complaints.
- Find a product that is relatively inexpensive to make (this will depend on your budget).
- Pick a product that you can stand out some way in the market with, or you can find a better product to sell on Amazon in that market.
- Find a product to sell on Amazon that you will be somewhat interested in or passionate about.
- Think about your 2nd, 3rd, and 4th product. Think about the bigger picture, the market, and niche you want to get into, and ultimately the brand you want to create.
Note: Make sure to order multiple samples of your intended product for sourcing, when you contact the supplier overseas. For example, Ali Baba has many highly ranked suppliers who will be obliged to send you free samples before you place an order.
The Power of Productivity with Skilled Virtual Assistants
Whether you’re a small business online or offline, you can never overlook the importance of getting an extra set of hands to take the burden off you!
With the fast-paced and ever-evolving world of business going through tremendous technological changes, it is imperative that companies around the globe – particularly those in eCommerce – understand, employ and effectively apply the power of technology and great customer service.
This is where world-class Virtual Assistant Services prove to be detrimental in more ways than one! Great companies and businesses are built on a proven system; constant, efficient and productive without the hiccups! The same goes for any successful, viable and effective small business – be it on a local or global scale.
The benefits are tremendously great!
Research and Analysis
Urtasker is a leading and globally renowned e-commerce virtual assistant agency that provides cutting edge, groundbreaking and truly revolutionary back office support to e-commerce sellers, business owners and vendors on multiple online channels such as Amazon, eBay, Shopify, Walmart.com and Jet.com.
With a fully in-house process of hiring, training and vetting its services for all its valued clients, the company empowers e-commerce businesses with hassle-free, cost-effective, trusted outsourced business solutions world-class virtual assistant services.
One of Urtasker’s proven accolades entails increasing a U.S based client’s sales by 20% in a mere 3 months. Another compelling milestone in terms of results entailed increasing the total sales for an online e-commerce company by 40% within a 2-year window. Book A Free Consultation Call
When you have a skilled Virtual Assistant doing all the research and analysis for your product selection, criteria and sourcing, you’ll also be continuously on top in terms of routine competitor analysis, latest consumer trend-watching and all the other administrative workload you don’t need on your desk!