Find Profitable Amazon Products
So, hereâs another important thing to remember Just because a product has a good Best Sellers Rank, does not mean it is necessarily a good product to private label and sell.
Below, you will find some key considerations to help you determine just how profitable your product of choice could be for your business.
Look For Profitable Products
You dont have to be a pro or expert to look for some of the most profitable products to sell on Amazon because Amazon gives all the essential data to comprehend market trends and the items that have the potential to generate high sales.
You have to recognize what literally makes a product profitable. Factors like popularity, shipping weight, competition, durability, category, and size together play a key role here. Hence, you must come up with products, which meet the maximum of these criteria.
Research the sellable and shippable factors. Thats something really important. While sourcing for such items, watch out for three major aspects: wholesale pricing, Amazons Seller fee, and shipping cost.
Here are a few specifications to note:
- The cost of the item must be 25 35% higher than your intended selling price.
- The intended selling price has to fall between the range $25 and $50.
- As said above, the product should be small and lightweight
- Give a good packaging for your product.
- Avoid fragile items, as they have a higher risk of damage.
- Go for day-to-day and evergreen products. Something that can be sold throughout the year.
Selling Your Product Through Existing Sales Channels
At this point, you are going to have to make a decision about your inventory. If it were me, I would invest the couple hundred bucks and buy 5-10 pieces of my product to get started. You can certainly buy one at a time to start and that will work, it will just be a slower start.
I guess now is a good time to mention that I have not found drop shipping to be a viable option for somebody just starting out with a new supplier. The only times I have ever had successful drop ship relationships with suppliers is after a long and prosperous history, at which point they work with me to get their American distributors to drop ship. More on that later, but I thought I would mention it as you dont want to do that just starting out, it almost always ends with unhappy customers and banned accounts.
Anyways, you need to get a few pieces of inventory and start selling them.
I only suggest using TWO of these THREE sales channels when first starting out Amazon, eBay, Craigslist
Notice I did not say spam your friends on Facebook and every forum you can find about it. That is a ton of work and will produce very little result for you. Not once have a I tried to sell things to my Facebook friends, I barely even tell them what I am working on unless asked.
You should know pretty quickly if you are making money and what the problem areas are.
Within a month it should be painfully apparent if you need to find a new product or if you should scale up your current product.
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Let Me Take You Through My Process Step By Step
In order for me to answer this question effectively, I want to break down the process step by step.
Finding a product to sell on Amazon is pretty straightforward once you understand what you are looking for.
Id encourage you to refer back to this guide during the product research process, you need to be asking yourself the following questions.
Best Products To Sell On Amazon
Selling on Amazon and succeeding at this venture means targeting the best product categories and selling items that will empty out your inventory with speed. You have to carefully choose your products in order to make sales happen, whether handling everything on your own or using Fulfillment by Amazon.
Here are the best selling product category options currently on Amazon:
- Apparel & Accessories
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When Negotiating With A Supplier On Alibaba To Purchase A New Product And Import From China What Are Some Common Additional Questions You Ask
- what percentage of your exports go to the US . Important to understand if they have experience selling to your market
- do you understand FBA packaging requirements
- does the product meet the countrys certifications
- do you offer DDP parity
- what product is your factory best at producing?
- what is your turnaround time?
- what are your payment terms for new customers
- do you use SINOSURE service
In summary, there are a lot of sleazy suppliers on Alibaba, but there are also a lot of legit suppliers that would love to work with you.
Do everything you can to protect yourself in case of a scam, but dont let it paralyze you to the point that you are not willing to pull the trigger on anything. Good luck!
Here are some tools I personally use for my Amazon private label business:
Full disclosure: Some of the links below are affiliate links and I will get a commission if you purchase through them.
- : The most powerful and most popular Amazon product research tool. Im using and I think its a very good starting point for product research and should save you money in the long run by using it to choose the right product!
- Fiverr: Photography, listing copy, keyword research, logo creation, product design
- Shopify: Your brand should always have an online presence and with Shopify, it is easy to create your own online store
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How To Find Products Fast
Using the Product Database in the , you have the power to scan through Amazon products by filtering key metrics such as price, demand, estimated sales, rating, seasonality, dimensions and more.
As you find potential products you can add them to the Product Tracker feature and begin following the sales activity, inventory, Best Seller Ranking, and pricing over a period of time which we advise you to do for a few weeks before deciding on a product! Keeping an eye on this data will give you invaluable insight to the products performance.
The Niche Hunter is another great feature built into the web app that takes a different approach and helps you discover niche products by looking at keywords. You can search keywords in a specific marketplace and category and receive a ton of product results.
Youre given an Opportunity Score for each product based off a unique in-house algorithm as well as a Listing Quality Score which grades a product listing based on a set of criteria. The LQS is another unique in-house algorithm that can help you identify products with high demand but a poor product listing
Sourcing Items That Have Proven Demand On Amazon
Another way to find potential products to source wholesale to sell on Amazon is to use Amazon itself to search. Simply search for a brand or product name that you are interested in selling, and search for it on Amazon. Then look through the search results and see if there are products there that look like they have potential if you are able to setup an account with the supplier.
Here are the main things we look for when using this method:
- A sales rank with a number less than 100K
- A selling price above $20
- Amazon.com is not listed as a seller
- The product isnt being sold directly by the manufacturer
If the product fits those criteria, then its likely worth getting in contact with the company to see if you can get an account setup. Doing this research prior to reaching out is a good idea to make sure the product actually has potential, and makes sure you use your time efficiently.
An important side note: This is an example of a way you can use some easily available data points to help influence your behavior. This is important to be able to filter through all of the opportunities that exist on the Amazon platform. We factor the above data points into just about every wholesale sourcing decision we make. Learning to follow what works based on analytical information has served us well, and is something I recommend others use to their advantage. If you have a theory, or think a product may be good, do some research and test it before proceeding.
What Is Product Demand
Simply put, product demand is a willingness of a shopper to buy an item at a proposed price. Also, the high demand will not be there forever. According to the law of demand, other things being equal, if the price of a commodity falls, the quantity demanded of it will rise, and if the price of the commodity rises, its quantity demanded will decline.
If you expect the product to be in high demand, we are talking about market fit and generated demand. Market fit demand means that the product uniquely serves the target market. Generated demand is the one created due to the marketing efforts, and a professional seller can generate demand where there is no market fit. This means, that with the right marketing and pricing strategy you can create demand and increase it.
Also, when you think about what to sell on Amazon for profit, you may consider latent demand, and find a product that can satisfy a want that is unable to be satisfied by any existing product application. This means, that you can think about creating new added value to the product , or monitor the trending.
What One Piece Of Advice Do You Have For Other Sellers
Some might consider it a cliché but I strongly recommend that new sellers find a product they truly enjoy working with. Once the routine of work sets in you’re going to be dealing with products and prep work over and over. You’ll need to buckle down to some long hours when new inventory comes in and needs to be processed and made ready for sale. Plus, you’ll also need to organize your time to keep up with bookkeeping and data analysis to project growth or losses and adjust inventory reorders accordingly.
If you love what you’re doing then those long hours just seem to fly by and the problem becomes not getting the work done but learning to set work aside for awhile and enjoy some personal time with family or friends.
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Can I Drop Ship On Amazon
The short answer is yes, but the actual answer is no. Confused? Dont worry, it will all become clear as you read on.
The way that most people think about dropshipping is that theyll be sitting on an island somewhere, not having to deal with customers or suppliers. And, thats exactly where youll wind up if you try to dropship on Amazon.
Selling on Amazon does allow dropshipping but there are many rules attached to this type of selling.
Here are some examples of the Amazon dropshipping rules:
- Be the seller of record for your products
- You must identify yourself as seller on all product packaging
- Not identify any third-party drop shipper on your packaging
- Be responsible for all customer returns
- Comply with all of your Amazon seller terms
If youre looking to hand off a lot of the sellers duties to another party, you may want to sign up for Amazon FBA. With an Amazon FBA business, you store your products at the Amazon fulfilment centers and the Amazon team will pick the products, pack them, ship them to your customers, and also provide customer service for these shipped products. A lot of vendors are using Amazon FBA for their sales.
Amazon FBA offers all-in-one sales assistance and makes it easy for sellers to entrust many sales duties to others. When you entrust these tasks to the Amazon FBA team, youre using a method that can be carried out in an efficient way by those in the know. Fulfillment by Amazon makes the job a bit easier for you.
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How Does Amazon Fba Work
As a seller, you first have to choose the products youd like to sell online. Once you have products in mind, you add their details to your Amazon account, including titles, descriptions, prices, images, and other additional Amazon-specific product information.
Next, your listed items are prepared and shipped to an Amazon FBA warehouse.
Once your items are packed and shipped to Amazon, they will take care of the fulfillment for you. Amazon first goes through a verification process to ensure your items were delivered correctly and in the right condition.
After this verification, Amazon activates your listings. Once activated, your seller name is visible on your new product detail pages where you can now sell your items.
These items are then stored in Amazons warehouses until a buyer orders them.
When Amazon receives the order, they handle the fulfillment and can ship it as Prime Two-Day Shipping.
Generally, Amazon FBA first settles your account balance 14 days after you start, and youll get paid every two weeks.
The most significant advantage of the Amazon FBA program is that you, as a merchant, dont have to focus on logistics software, returns, and customer service, and only focus on generating sales. Additionally, your customers enjoy the benefits of Amazon Prime Two-Day Shipping. Its a win-win.
Now that weve discussed with Amazon FBA is, how to get started, and the benefits of joining, lets go over the total cost.
Whats Next: How To Finance Your Amazon Inventory Expenses
Once you choose your products and see sales at a steady pace , youre ready to invest in your inventory on a regular basis.
However, most Amazon sellers struggle to keep healthy cash flow to pay for inventory, especially since for weeks at a time.
This is a problem since keeping up with inventory is crucial to the success of your Amazon business. Otherwise, you risk stock outs, which means missed sales opportunities and .
To avoid situations like these, learn about different that can power the growth of your online business.
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You Dont Control Your Product Supply
Ive been selling online for over 13 years with my ecommerce store over at Bumblebee Linens. We sell handkerchiefs and linens under our own private label brand and we have many wholesale suppliers who keep our inventory flowing from month to month.
Over time, weve developed strong relationships with our vendors and we have full control over our supply chain. This means that we dont have to physically go hunting for new deals everyday like a retail arbitrage seller.
When were about to run out of inventory for a particular SKU, we simply place another order and it arrives at our doorstep.
With retail arbitrage sourcing, you have zero control over your retail arbitrage products or your inventory. Once youve sold out of a product, you have to physically go shopping again for more inventory.
And if your local retail store no longer carries your product? Youre out of luck.
Check Out The Amazon Best Sellers List
If you want a really good idea of the products that people want most, then the best sellers list on Amazon is a fantastic first place to start. You can search in any category you have interest in and jot down the items that catch your eye. Try to eliminate seasonal items so you can maintain consistency throughout the year.
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Clothing Shoes & Jewelry
From exercise clothing to sunglasses to jewelry, the Clothing, Shoes & Jewelry category is undoubtedly a popular one — but it’s also oversaturated with items, so it’s critical you ensure you’re able to offer something unique, and for a good price. People don’t turn to Amazon for expensive brand items — instead, they look for the discounts. Right now, the top items are all below $17, and include a basic sleeveless tank top, blue-light blocking glasses, and high-waisted leggings in a range of 25 colors.
Characteristics Of A Good Product
1. Retail price between $25 $50 USD
We discovered that this price range makes it easy to cover direct costs like Amazons fees, cost of goods sold, and advertising costs. Any higher than $50, and your conversion ratethe percentage of people that see your product and purchasedrops.
2. Low seasonality.
We are after products to sell all throughout the year and not just during certain seasonal periods. The Google Trend Report is built right into the Chrome Extension to detect seasonal sales spikes you can easily avoid.
3. Less than 200 reviews for the top sellers
4. Small and Lightweight
It is much faster and easier to import via Air, so you want something that wont be too expensive to import.
5. Can be improved.
You can implement feedback from your competitors product reviews and create an improved and superior product.
6. Simple to manufacture.
You dont want to run into quality control or manufacturing challenges. Avoid glass, electronics, or highly complex products if you can.
These are just guidelines, and a blueprint that we have used time and time again as a team of Amazon sellers. Every product has its own unique balance of opportunity vs competition.
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