The following article was written by DataHawk. To learn more about DataHawk, visit them at datahawk.co.
Your ultimate goal as an Amazon seller is to increase your monthly sales while spending as little as possible. Automating most, if not all, of the logistics of an Amazon eCommerce business is a dream of many owners, something you can achieve by understanding the right sales opportunities.
If your goal is to increase your sales rank, it all starts with finding the right products. If you want to find the most profitable sales opportunities, this article will help you find them.
Finding the best product to sell on Amazon involves breaking down some of the more specific aspects of product finding. These aspects include the following:
A good product should not only be in high demand but also have a low chance for customer returns.
When it comes to attracting customers, price is crucial. Stick with products that vary from $15 to $60 when choosing your first (or next) product to sell on Amazon.
This price isn't in the premium range but isn't in the cheap range either. Choosing a mid-range price point offers two significant benefits:
Pricing is only one aspect of launching a good product. For example, you might still struggle to gain sales without first finding the right niche. A good business model considers multiple facets when deciding to sell a product.
The more customers in your product niche, the more challenging it will be to rank. You can quickly determine the popularity of a product through a customer review count, which should ideally be anywhere from 75 to 100 product reviews.
Ideally, you would be surrounded by sellers who have no idea what they are doing. However, making that assumption is one way you could end up failing. It is never smart to underestimate your competition.
Also, be aware that this situation only applies if you share your product listing with others. This is relevant to drop shippers, direct sellers, arbitrage specialists, and wholesalers. However, if you are a private label seller or seller of handheld products, you are the only one selling your brand. Therefore, comparing reviews doesn’t concern you.
During the research phase, you should create a list of keywords for your products. Each of those keywords should be chosen in consideration of its search volume. The search volume indicates how many people are currently searching for your product. Ideally, this figure would be a total of at least 10,000 people.
You can access historical monthly data on trends and search results using a sales estimator tool. You can also learn more about this tool by reading up on how to estimate monthly sales for a given product.
Looking for trending products to sell is, of course, a great way to make a short-term profit. However, you don’t want to add these to your permanent list or products. For example, those who bought fidget spinners found out too late how the rise and fall of fads can negatively impact sellers.
You should also avoid selling seasonal items as your primary product offering. Unless you only plan on selling your products three months out of the year, seasonal products should be a secondary offering.
Low competitiveness is a crucial aspect to consider when targeting your preferred market niche. However, Amazon simplifies this by breaking down each product listing through a number of sellers. If you want to avoid high-competition areas, stick with products that have five (or fewer) sellers as part of the mix.
Having five competitors gives you a higher chance to appear in a favorable position on the other sellers' list. Having the right amount of competition plus quality shipping will help you win the buy box.
When you are among 17 other sellers, your chances of being found are incredibly small. In this case, in order to make a sale, you might need to cut your prices incredibly low, eliminating any chance of making a profit.
If you don’t want to lose money, stick to finding products with decent sales volume and only a few other sellers.
Finding affordable shipping costs is a big bonus of selling through Amazon FBA. However, those costs can become much higher when selling large, heavy items. To save money, you should sell products that are under five pounds and smaller than a shoebox.
Selling lightweight items will save you money. You can then invest the money you saved back into your business, in an advertising campaign for example.
Here are some products you should avoid selling:
If you want to earn the sales behind Amazon's bestselling items, you need to understand what products work. To do this, you need to know the following:
When performing Amazon product research, it's easy to get tunnel vision. It's important to never rely on a single piece of data when making your decision; always get a complete picture. This is what we do at datahawk.co. Check out our demo software to get an idea of what a complete picture should look like, and contact our sales team today to find out how we can create success for your Amazon company.