Amazon Fba Competitor Analysis 101
- First up, go on the Amazon site and search for the product that you are looking to sell. Then, you have to analyze the top 10 listings for that particular keyword based on reviews. Think about it for a second one of the best ways to judge a product is through its reviews! The more reviews a product has, the more popular it is! So, you need to look at products which have less than 300 reviews.This is because it takes a long time to accumulate positive reviews on Amazon. So ideally, you need to compete with a listing that hasnt got more than 100 reviews up front.
- After you gathered the 10 product listings for your keyword, you will have to find the for each individual product. This can be found easily in the product details section on the listing page. In case you are not aware, Amazon Best Sellers Rank is an indicator of how popular an item is in that sub-category. The lower the rank, the more popular a product is.
- Now, all you have to do is use SellerApps Free to figure out how many sales each individual product is making on average per day. Simply enter the Amazon Sellers Rank in the tool, and you will be shown the approximate number of sales it makes on a daily basis.
In addition to competitor analysis, you will also have to look into the seasonality aspect.
Expedite Your Research and Get Accurate Estimates
Step 2: Source the Product
Negotiation is a delicate art and as such, it should be done carefully.
Looking For An Amazon Prime Agency Or Prime Seller Consultant
Being a successful ecommerce business takes a lot of time, money, and hard work. If you’re trying to juggle it all yourself, you’re going to struggle at some point. Instead, it’s far better to utilize a third-party consultant company like SupplyKick. There are three ways that we can help you thrive on Amazon, both through Prime and Vendor or Seller Central:
- – We’ll show you how to promote your items to drive higher sales. We can even take photos, create videos, offer listing optimization services, and develop marketing materials such as A+ Content orEnhanced Brand Content for you.
- – Navigating the ins and outs of Amazon’s platform can be confusing and time-consuming. We’re the experts, so we can get you selling on Prime much faster.
- – Tired of the headaches involved with Amazon FBA, Vendor Central, or SFP programs? Let us take care of everything so that you can focus on other key aspects of your ecommerce strategy and business growth.
Overall, when it comes to selling on Amazon Prime, SupplyKick is the best resource available. Connect with us and lets walk through your current listings and fulfillment strategy together.
Create Your Brand Name
Once you can source your products, you need to create a brand revolving around your products and business goals. Choose a name that is easy to remember, isnt very long and most important is different from everyone else. It doesnt necessarily have to match the products you are listing, but it should represent your business.
For example, if your focus is on beauty products, you want a name that reflects beauty. You can use Shopifys business name generator to help with that. Lastly, make sure you have the .com version of your brand name so that you can register it.
Here are other tips to consider when creating your brand:
Create Your Brand Logo
You will need an original branding logo for your new company or product line. You can hire a graphic artist, do it yourself or find one for cheap on places like Fiverr.
A branding video is a great way to show people who your business is and what you sell. This branding video will also play on Amazon for the customer when they scroll through their product listings. A branding video can be a huge advantage to your product and help you separate yourself from the competition. This branding video should have a professional feel, but not too flashy.
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How To List Your Items On Amazon
Once you have your account, you need to list the items you want to sell.
For some people, we may be skipping a crucial step choosing what items to sell. However, for this tutorial, Im going to assume youve already done this. If you dont know what to sell first, simply find some items around your house you want to get rid of .
To add your first product, you want to go to Inventory in the top of your screen and click Add a Product.
Once you click Add a Product you will be prompted to search for your product. I searched by barcode, however you can also search by the product name. Unless youre selling an item you manufactured , you shouldnt need to create a new product.
Note: Each product sold on Amazon has its own unique identifier called an . Its important to match your product with an existing ASIN or create a new one if you manufacture your own product. You can be penalized for creating a new ASIN for a product that already exists.
Once you select your product, youll be taken to a screen to enter important product information. There are three main things you must enter.
Read more about .
Lastly, you want to make sure you select I want Amazon to ship and provide customer service for my items if they sell. This is essentially the I want to use FBA option.
Mix Of Products To Sell
Having a sustainable business model can often mean that the merchant sells a various number of products and receives a relatively equal amount of their annual profit from each product being sold. Many merchants have taken advantage of diving into niches and selling as many different items as possible. This may sound good on paper, but it is imperative to take into consideration what percentage of your revenue each product-type accounts for.
If you sell multiple products, but one product accounts for 75%-90% of your revenue, you cant really say that you have a multiple-product business. You face a lot of competition within the Amazon marketplace, so if your product can be sourced by other merchants at right around the same price, then the longevity and sustainability of your business model must come into question.
Straying away from products that tend to fluctuate in price consistently can help ease the nerves of potential buyers. With smarter products being sold, the more content your potential buyer will likely be. A smart product is one that consistently sells well at most times of the year, and doesnt commonly experience radical changes in price. Thorough and careful product research will lead you to products that have a long-running track record of sustained high-sales performance.
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How To Sell On Amazon Fba For Beginners Step By Step
If you are new to selling on Amazon FBA, this blog post will help get you started. Well walk you through the steps of becoming an Amazon seller and give you some tips for setting up your first product listing.
You can make money online by using the fulfillment services of amazon.com. You will sell products that you get from manufacturers or wholesalers at a price that is much cheaper than retail prices.
FBA can be a complicated process but this guide will walk you through the fundamentals. How do I find a product? How do I find suppliers? How much money can I make?
This article will answer these questions and more, providing tips on how to sell on Amazon FBA for beginners in a step-by-step fashion.
The Importance Of Customer Reviews
Customer reviews for your Amazon business are so important because they impact your visibility in search results. If you have a lot of negative reviews it will negatively affect your product ranking and in some cases, may cause you to lose business.
Heres an example: This is the worst chocolate ever! It tastes like cardboard with a hint of salt!
Customers tend to trust other customers when doing an online purchase. They also tend to trust the few top-ranked businesses more than a business with a lot of positive reviews who are further down in the search results.
Dont be afraid to ask your customers to leave a review. If you have a good product, theyd be more than happy to.
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How Long Will It Take To Sell Your Amazon Fba Business
The time it wil take to sell your Amazon FBA business will depend on the specific business and the terms of the deal. Generally, for the large deals of over $1M, they will take longer to sell than the smaller deal under $300K because of how complex the business is and the high risk of the buyer.
In addition, it’s important to note that if you use a website broker, they will charge 10-15% of the gross sale price to sell your Amazon business depending on the business size. There’s an average timeline of how long it will take your Amazon FBA business to sell:
- Less than $100,000 K- 66 days
- Between $100,000 â $500,000- 118 days
- Between $500,000 â $1 million- 151 days
- Between $1 million â $2 million â 128 days
- Between $2 million â $5 million â 146 days
- Over $5 million â 170 days
Create Your Product Listing And Optimize It
Now that you have got your branding down, have your products, and are in the process of shipping them to Amazon, you will need to create your product listing. Your product listings should include optimized titles, descriptions, keywords, and images.
Before you create your product listing on Amazon its important to understand the Amazon search engine. Search engines are designed to mimic real-life searches people make in their day-to-day lives. For example, when people want to buy a new smartphone they might use Google or Bing to find what they are looking for. The same principle applies when people are shopping on Amazon only that the search volume is much higher than Google or Bing because Amazon is used worldwide by both consumers and businesses alike.
To create a well-optimized product listing, product titles should have a professional feel but not be too flashy. Product titles should draw the attention of a customer from their Amazon search to your product. You can do so by placing some clear, unique, and identifying information to draw potential customers to your product.
A trick you can apply is searching for similar products sold on Amazon and seeing how they list their product titles. Also, dont forget to put one keyword in your product title.
Heres an example: VISION ZS6 1080P Full HD Sports Action Camera. Ive included our main keywords Vision and ZS6.
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Optimize Your Inventory Turnover Ratio
You pay for FBA storage, so dont waste money on products with low turnover rates. Dont invest in too much inventory until youve tested a product and know it sells.
For example, Xbox controllers would have a higher turnover rate than Xboxspeople need multiple controllers and replacement controllers but only a single console.
Calculate your inventory turnover ratio with this formula:
Average Inventory = / 2
You have to walk a fine line between keeping inventory stocked and not burning your budget on storage. Too little inventory, and youll miss out on interested customers. Too much inventory, and youll waste money on short-term and long-term warehouse fees.
Inventory turnover is flexible. Depending on your product, you may burn through stock during the summer and barely make sales during the winterthats something youll need to factor in when deciding how much inventory you send Amazon FBA.
Get Quality Images For Your Listing
You can take the pictures yourself, but we recommend using a professional photographer in order to present your product to potential customers better than your competitors do.
First, make sure you know about Amazons photography requirements:
- Your main product image needs to feature your product against a plain white background, without any props or watermarks.
- 85% of the main image has to be taken up by your product.
- Your image should be at least 1000px by 500px in order to be zoomable.
- You are allowed to include up to 9 pictures, and we recommend having as many as you are allowed.
Next, use your photos to present your product optimally, clear up any confusion a user may have , as well as allowing the customer to picture how life would be better if they had your product.
- Consider lifestyle photos , infographics, .
- Keep in mind that many customers will be browsing on mobile devices, so keep designs simple and clear.
- Include backgrounds that are unique and specific to your product. For example, if you are selling an outdoor toy, include a park in the background.
If youre brand registered, you can also include a video in the photography section, which helps enhance your listing and stand out from your competition. Adding a video is one of the best ways to promote your product and increase conversions.
In this clip, we give you tips on price negotiation and how to ensure the quality of your product using Supplier Database.
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Avoid Competing With Brand Names Or Super Well
Especially for your first product, go with something that doesnt have a crazy amount of competition in the form of brand name items. Keep this in mind while doing your market researchis a product trendy simply because of its brand name? If so, this could indicate that the market wont be as competitive as youd think . If you want to break into a market thats dominated by a major brand name, your product will need to be pretty revolutionary.
It can also be difficult to start your Amazon FBA business in a product category with many well-established, non-name brands boasting incredibly high ratings. If most of the products in a category have over 50 awesome customer reviews and theyre highly rated on the Best Seller Rankings, this could also be a sign that the market in this category might be too competitive to break into, at least to start with.
But perhaps while meandering through the products on Amazon, you realize theres an opportunity to greatly improve on the way that a certain product is being marketed. Perhaps you also notice that it isnt in a super competitive market.
When you find opportunities like this, you can try and break into the market with a product that uses your own private label, which allows you to use a retailers name instead of that of the products manufacturer. Doing this gives you way more freedom when it comes to creating a brand for your business and your product.
Sounds Great Do I Need Anything Special To Start
Thats the beauty of it Amazon was built for the student fresh-out-of-college looking to create their own brand, the burned-out employee looking for a career change, and the corporate retiree looking for an accessible way to generate a passive income stream.
You do not need formal business experience to sell on Amazon.
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How Amazon Fba Works
This is how Amazon FBA works: you sell, then Amazon ships. The eCommerce shipping and logistics will take care of your deliveries, but it comes with a price. For a better understanding, here’s the lifecycle of Amazon FBA from start to finish:
- Seller sends inventory to Amazon’s fulfillment centers.
- Amazon receives, sorts, and stores the inventory once it arrives at the fulfillment center.
- The customer orders the seller’s product from the marketplace.
- Amazon picks, packs, and ships the order to the customer.
- Amazon will handle customer service.
- If the customer wants to return the product, Amazon will also take care of it.
But I can also avail myself of this service from courier companies or third-party logistics providers! We wouldn’t argue with you on that matter, except it doesn’t have perks like customer service and item return features. But what else can you get from Amazon FBA?
Create An Fba Shipping Plan
Before you send your inventory to Amazons warehouses, make sure theyre quality products in good condition. Youll also want to be prepared with enough inventory to meet expected demand. When youre ready to send them to a fulfillment centre, follow Amazons packing guidelines and shipping and routing requirements. This includes information on shipping labels, UPC codes, and other barcodes. Once your inventory arrives at the fulfillment centre, Amazon handles the rest.
Taking advantage of Amazon FBA passes benefits along to your customers, like free 2-day shipping for Prime members or free shipping on eligible orders. You customers will appreciate the savings on top of the convenience of buying on Amazon.
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Summary Of What Products To Sell On Fba
Here are the main takeaways of finding Amazon product ideas:
- Keep goods between $25 $50
- Keep them small and lightweight
- But dont have them break easily, as they could get damaged during transport
- Dont pick seasonal products opt for evergreen ones
- Find products that need an improvement
Selling on Amazon FBA may feel scary at first. Any financial risk does. But this article helped guide your decision in picking what products to sell on Amazon. You should continue to do deep research into your niche, but we hope you can get to selling quickly.