Find A Profitable Niche
The first step is to find a profitable niche for you to create and sell your Amazon product in. The best way to do this is to find what is already selling and trending on Amazon. It’s important that you find a market where there is a high enough demand for you to be successful in, but isn’t too competitive.
The easiest way to see what is selling is by going to the and begin to look at the products in these categories.
To give you an example, one category that I was looking in is Sports Nutrition. As you can see, listed below are some of the top best sellers in the Sports Nutrition category.
This already will give you some ideas for products that you could potentially private label and sell.
When brainstorming which niche you want to get into, there is a specific criteria that is recommended for you to follow in the Amazing Selling Machine.
For example, you want to make sure that your product is light and small . For that reason, you wouldn’t want to look at refrigerators or dumbbells.
You also want to look for products that are selling within a specific price range, so that you you can make enough of a profit on it. I personally look for products that are selling between $9 and $40. If I can sell my product for $20 and get it made for only $5, then that’s a $15 profit margin for each sale .
Looking in the Sports Nutrition category, you can begin to get ideas for what is selling that you could potentially get into as well.
Setup Your Business And Secure Any Necessary Licensing
Depending on your location and what youll be selling, you may be subject to needing a business license. Most suppliers will require you to have this already in place before they start to work with you. Need help? Start with the Small Business Administration, then reach out to your local Secretary of State. Hire an attorney to assist you with the process to make sure you dont miss anything.
Ways To Find Niche Products To Sell
The Fulfillment by Amazon business model continues to grow in popularity, and for good reason. Fundamentally, its the same as a traditional e-commerce business. But, instead of your having to fulfil orders one by one, Amazon stores your products for you and even picks, packs and ships them out to customers.
However, this popularity comes with a price. The foremost problem is that it became increasingly more difficult to find products worth selling online through FBA. Tons of tools exist that assist you in analyzing possible niches and spying on your competitors.
Therefore, we can find a new trend where FBA sellers are looking for new profitable niche markets outside of Amazon. Also, the high FBA costs concern many sellers as Amazon charges a variety of fees monthly storage charges, membership fees, and shipping and gift-wrapping fees. Where ModulTrade only requires a significantly lower commission of 3%, plus we do not ask any fees from you when dealing online.
So, what now? Lets dive into alternative methods for finding niche products.
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Using Your Imagination To Find The Niche
Whether youre thinking about starting to sell in a new niche or looking to create your Amazon niche website, the main thing you should focus on is passion and interest.
Once you manage to find a niche that interests you, the next step would be to check if it is among the low competition niches. Also check for profitability.
When youre using your imagination to search for a niche, you should start thinking about things you can see, use, touch, and have fun with.
Search for inspiration around and inside your home, public places, workplace, and everywhere you go.
You should observe people and notice what they wear, their typical routine, and what they enjoy doing.
Identify their hobbies and interests as that will give you a better idea of what they might want.
Search for Amazon niches in these categories since products in such categories provide people with happiness, satisfaction, and joy.
Its important to pick a niche using a different approach i.e. looking at the problems people face in their daily lives along with the source of those problems.
Then, you should pick a niche that can offer the best solutions to these individuals.
After youve highlighted the items using your imagination skills and ideas, you should research the items that people tend to buy from online retailers and from brick-and-mortar stores.
For instance, most people prefer going to a store to shop for clothing since they want to check if it fits them well.
Create A Profit Margin Based Business Plan
Here comes the fun part creating your business plan. Where should you start?
Amy Wees of Amazing at Home suggests,
Start with the end in mind. There are many different business models to explore in e-commerce. Getting familiar with all of the options and the risks and rewards to each, as well as how each model aligns with your personal goals, will help you decide which model to start with. Amy Wees, Amazing at Home
Ask yourself, What do I want to get out of my experience selling online? Do you want to build something you can sell, or do you need money right now? Do you want to dip your toe and learn the process or dive deep into higher quantities and bigger risks for potentially bigger rewards down the line?
At a minimum, your plan should include:
- Who your target audience is
- The kind of business model youll use
- What youre selling
- How youll source your product
- Plans for scaling growth
Starting an ecommerce business requires some kind of plan, even if it changes a bit as you go. As you move deeper into the research process, you should also document things like:
- Your companys brand, mission, vision, and value proposition
- A competitive market analysis
- Financials and how youll secure the necessary funding
When youre calculating your startup costs, look at the big picture. Ecommerce consultant, Jordi Ordóñez says,
says Andrew Buck of LandingCube.
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Review Best Sellers Pages Within Your Potential Categories
Next, if you want to explore your opportunities and competition within a certain category, you can simply head to Amazon itself, search for that category and add best sellers to your search term. Heres what we found searching for best sellers novelty scarves:
The Best Sellers page lists the top 100 sellers in that category. From there, you can click into different items and scroll down to gauge their sales popularity.
The product description detail that Amazon provides on each item tells the story of its overall popularity. For example, this item is pretty popular according to:
-
Its Amazon Best Seller Rank of 5,836 in the huge Clothing, Shoes, and Jewelry category. As a rule, anything with a BSR under 10,000 in a major category has respectable sales velocity.
-
Its 145 reviews from customers show that this item has a track record of sales.
Reviews add up over time, but each review shows the date, so you can use reviews to gauge how many of a given item sold in a set period of time. According to Amazon Seller Central, only about 10% to 20% of customers actually leave feedback. So 145 reviews can equal anywhere from 700 to 1,500 actual sales.
Its not a perfect market analysis, but it helps you determine if an item has enough demand to make it worthwhile. It also helps you see what your competition is doing and uncover ways to improve upon their products.
Begin With A Winning Mindset
Making the decision to start an Amazon business is a feat unto itself. If you are reading this, chances are youve already or have almost mustered the courage to become an online seller for that, we congratulate you. Your next step, concocting the right product idea and choosing a profitable product to sell on Amazon, is perhaps your most important. So, if you dont know what to sell on Amazon, we are here to help.
Nike says Just do it. Helium 10 says, Just do it right.
Below are some of our top tips on finding the best things to sell on Amazon and taking those first few steps to own the Buy Box.
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Sell Your First Few Samples
You might miss just one detail when checking your samples and that could be the most important detail. So, before buying in bulk, try selling your first few samples. See if real customers complain.
This part should be pretty easy for you, but here is a quick overview of how to start selling:
List your product on Amazon, eBay, and/or Etsy. Set up a seller account if you dont have one, and list you samples. What to write in the description? You know, thats a science on its own. But youll need a lot of time to learn it. So, why not use a shortcut instead? When I dont know what to do I simply copy from the best! Look for the top listings in your category and then rewrite their copy. On Amazon, you dont even need a lot of copy. Protip: Also look at the reviews for inspiration. Dont worry about the copy too much. Just get your products published and try to make a few sales. If you arent making any sales, start comparing your product to ones that are selling.
Mail your orders. You can simply use the local post office. The mail can be a bit slow but its also very cheap so its perfect for testing the waters.
Dont expect to make much profit on your samples. Youre only selling them to test.
A few pro tips at this stage
Find Out What Others Are Selling
Do you know that small-scale sellers are making it big by selling niche items? From handmade items to custom and unique jewelry items and even live bugs. In this way, they reduce the competition from large sellers and from Amazon itself.
Amazon is really good when it comes to upselling products. It keeps a section showcasing recommended products underneath a products description. This encourages buyers to consider the products that are being showcased.
Heres an example:
Notice how Amazon suggests product pairing with the above-mentioned best-seller. Here, suggested products may not be bestsellers themselves, but as a seller, you can determine what are the products other sellers are selling.
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Blogs Gadget And Trend Sites
One of my favorite sites to find interesting blogs and trend websites is Kadaza. Its a collection of the best sites in many different categories. Click on any of the categories and you will find websites in that niche.
For example, I found The Gadget Flow through Kadaza, and by subscribing to their newsletter I get weekly updates on trendy items that may not even be on Amazon yet.
They have a lot of products that are currently on crowdfunding sites like Kickstarter. But you know what? If its only on Kickstarter now, it means it isnt on Amazon yet. You can take the product idea and even improve on it.
The point I want to get across is not to copy these companies, but to find ideas on blog sites and see how quick it is to buy from Alibaba or Global Sources. Add an accessory, change colors or do whatever you feel could improve the product. The best thing about subscribing to these sites is that you get ideas delivered for free to your email address.
Find Niche Blog Topics
As Flippa may be a great method to get key insights, the niches explored by these websites are most likely full of competition by now. What if we could find a bunch of trending blog topics all in one place? Thats exactly what Alltops offers. It is an aggregator for trending content that should give you better insights into what is hot right now.
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Use Retail Arbitrage To Source Amazon Products
In retail arbitrage, you purchase deeply discounted retail products and resell them on Amazon. It sounds simple, but doing it rightmeaning profitablytakes some work. Retail arbitrage sellers are absolute pros when it comes to hunting up discounted and clearance deals in local stores and matching them with hot sellers on Amazon.
The secret is knowing whats selling well on Amazon on any given day, and for how much. You also need to clearly understand your cost of selling that item on Amazon. Amazon seller fees run about 15% of your selling price, and shipping orders can take a big bite out of your profits if youre not careful.
Luckily, there are tools to help you spot profitable bargains. Amazon pricing apps are the retail arbitrage sellers secret weapon. These are smartphone apps that let you scan item UPC codes and match them to current listings for that product on Amazon.
These apps deliver a wealth of information to help you price your products including the average selling price and buyer demand, your shipping or Fulfillment by Amazon costs, and your potential profit.
Using this information, you can decide if you should buy a product and how much inventory to stock based on the current demand and your profit potential.
You can also see detailed storage and shipping costs if using FBA for fulfillment. The FBA fulfillment option has its own costsbut managed right, it can be far cheaper and less time-consuming than handling fulfillment yourself.
Why Is Niching Down Important
Finding a niche on Amazon is essentially identifying your little pocket of Amazon keyword search traffic, then dominating that niche with well optimized listings& keyword ranking strategies.
Its finding an underserved group of customers, then serving them with the high quality products they want.
Amazon FBA is competitive these days, so gone are the days when selling turmeric pills or BBQ gloves is anything but a bloodbath of competition. are much better off finding a smaller niche to serve and serving them well.
So essentially, by choosing a smaller niche, you are lowering your barrier to entry.
To compete on super competitive products you need to invest large amounts in inventory and advertising, but when you find the perfect niche, you bring great products to markets that are hungry for them and that have lower competition.
Dont get me wrong, many people do very well in broad categories and niching down isnt for them.
But they are playing a different game where their large investments and fancy marketing teams will help them win.
One last thing about nichesthey tend to have higher conversions.
Thats because with less competition, buyers tend to spend less time shopping around. If they see something they like, they may check around one or two other options. Or they may even purchase right away if it looks fantastic.
Makes sense, right? If there are a million other basket balls on the market, Im gonna spend more time looking around to find the best one.
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How To Become An Amazon Selling Genius
The Genius Series is a free in-depth guide where some of the top Amazon minds will teach you how to effectively sell your own private label products on Amazon, and its completely guided by YOU, the Amazon selling community!
You spoke, we listened, and here we are to present an all star series for 2018.
In addition to Amazon product research, we will cover sourcing, importing, and marketing your own private label products.
You can head over to the Genius Series page below, and sign up to get the latest updates on when new sessions are coming up. Some of the sessions will be live, so well be sure to let you know ahead of time.
See you around!
Create A New Product Listing For Each Product You Sell
To make things easier for you, if youre selling something already on Amazon, you can search for the product. This way, you can use the product information already there to make filling out the detail page go a bit faster.
Once you search for a product, Amazon will show you all the current listings they have. You can choose to sell one of those or create your own.
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Do Market Research And Choose Your Products To Sell
Follow the steps above to do your research, and choose what products you want to sell. Remember to find a product that solves a problem, is niche-specific, fulfills a desire, and is brandable.
Crunch the numbers to make sure your idea has healthy profit margins a good chance of success. This is also the time to define your target keywords, start building your brand story, and connect with your prospective customers.
It’s possible to build your brand before deciding on a product to sell, which can give you a jump-start when it comes to launching your business. Spearmint Love, for example, started as a baby blog.
When owner Shari Lott decided to open her own store, she already had a dedicated audience ready to try her products.
Characteristic Of Good Products
If you are wondering how to choose the right product to sell on Amazon, you should follow the proper evaluation criteria at the first start. We recommend you use these six metrics in the evaluation process. If a product can satisfy all of the requirements, there is a good chance that you have found the winner.
Price range is between 10-70$
We have found out that this price range makes it easy for not only impulse purchase but also and informed transactions. Surprisingly, any product over $70 can make potential customers become skeptical and start comparing prices on different stores for a better deal. Besides, lower-priced products in the range of $1-$10 are generally considered to be not worth the shipping costs. People tend to buy them in physical stores instead.
In a high demand
We are finding products to sell throughout the year and not just during certain seasonal periods. You can use Google Trend report, which shows you seasonal sales spikes with high accuracy.
Less than 200 reviews
Products with more than 200 reviews already have gained the customer base, and of course, it becomes harder to complete. Because customers feel safer to purchase products from the store when reviews are plentiful. If you are a new Amazon seller, building a list of positive feedbacks will enhance customers confidence and your compatibility..
Non-perishable, easy-to-store and easy-to-ship
You can choose to sell items that are original, low-cost, and simple to fulfil.
Easy for restock
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