Are you thinking of becoming an FBA seller? Or have you been in the Amazon FBA business for some time but can’t get the results that you want?
Almost 57% of the Amazon fulfillment orders used FBA sellers. This speaks volumes about the potential to earn huge from this business.
But that’s not always the case.
Chances are, the products that you are selling aren’t competitive enough to drive sales from your target market. So many FBA sellers have attempted to crack the FBA code only to find out that the product that they’re selling isn’t what the consumers really prefer. On the other hand, they may be selling a popular product but just can’t get a good profit margin.
Think about it: Amazon carries more than 450 million products. If you’re just new to the FBA business, what are the chances that you’ll strike it big in this eCommerce platform?
You have to begin with the right product.
Yes, order fulfillment is a tricky process if you don’t know where to start. It’s easy to be a third-party seller but it’s not the same if you want to stay in the game.
There’s no one-size-fits-all formula to determine what products can sell well on Amazon but there’s a method to finding out what can be profitable on your chosen niche.
Below are the ways to determine the products that will boost your sales. However, make sure to consider all of them when making a decision.
Through the Amazon Best Seller page, you can search for the top purchased products per category from Computers and Accessories to Pet Supplies. Smart speakers and streaming sticks dominate the Electronics category while $10 gift cards are at the top of the list in the Video Games department.
The Amazon Best Seller page gives you an idea of what products are trending so you can narrow down your choice of what to sell. But remember that some products require you to have prior knowledge, technical know-how and larger shipping costs for bigger and heavier items.
Search term volume can be a great indicator of what products are best sellers on Amazon FBA. The more searches for a particular product or keyword, the higher the chance of being noticed by customers and ultimately leading to higher sales. The idea is to optimize your product pages with relevant keywords that are related to the product you wish to sell. This makes it easier for customers to find your product and increase the likelihood of successful sales. Additionally, you can even look at competitors listings to observe which keywords are being used to promote their products. This gives you an idea of what keywords should be included in your listing so that it stands out from the competition and drives more sales.
Consistent sales are often affected by year-round demand for products. You need to reach customers at any time of the year instead of only earning revenues during the Christmas season or Valentine’s Day.
Seasonal cash flow can frustrate newbie FBA sellers who want steady profits. Seasonal products are not recommended for those starting in this business. Instead, you should include seasonal items to your main product line to add more sales during holidays and special occasions when Amazon shoppers are looking for special items.
Evergreen products are ideal for new FBA sellers because they provide consistent cashflow throughout the year. These products are not influenced by seasonal trends or special occasions, so they can be relied upon to generate sales at all times. Plus, evergreen products don't require extra effort to promote them as there is no seasonal competition or pressure for customers to buy. Therefore, evergreen products are great for FBA sellers as they offer a steady and reliable source of income. Examples of evergreen products include books, electronics, home items and storage solutions. By selling these products on Amazon FBA, you can maximize your profits while ensuring a good profit margin. Additionally, since evergreen products remain popular all year round, you can leverage your existing customer base by continually introducing them to new products and inspiring them to buy from you again.
If you’re deciding what to sell between Product A that has high demand but has 10,000 competitors versus Product B, which has a slightly lower demand but only 200 competitors, which do you think is easier to sell?
If you’re new to the scene, then it makes sense to choose Product B because you’d have fewer sellers to compete against. Only very few FBA sellers get to succeed in an oversaturated supplier market. Of course this can become much more complex.
High demand is critical for success when selling on Amazon FBA. Even though products with low competition may be easier to sell, having a product that customers are looking for is essential. If the demand for a product is high but it’s only produced by a few sellers, the price will increase quickly and customers won’t be willing to pay more for your product. On the other hand, if there are plenty of sellers offering the same product, customers will be able to find lower prices and it’s therefore important to make sure that your product stands out from the competition in terms of quality and value. It’s also important to make sure that you have a sufficient supply of the product to meet customer demand. Having a low supply in comparison to the high demand will result in customers being hesitant to purchase from you, as they won’t want their order to be delayed or cancelled due to lack of stock.
By carefully selecting products that have both high demand and low competition, FBA sellers can maximize their profits and build a successful business on Amazon. Selling products with low competition will help you get your foot in the door quickly and make it easier for customers to find your product, while having a product that has high demand will guarantee steady sales throughout the year. With careful research and dedication, FBA sellers can have success selling on Amazon.
You can use online tools to identify what keywords a product ranks for and how many competing and similar products show up for such keywords.
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Some of the most saturated products on Amazon include nutritional supplements and mobile accessories.
Amazon customers have so much to talk about their purchases, especially when they’re not satisfied with it. This is where FBA sellers can dive in and learn about what customers want. You can improve an existing product, find a new supplier or look for a better alternative that meets buyer’s needs based on the information that you uncover.
Reading customer feedback can provide valuable information when developing a new product. By understanding what customers do and don't like about an existing product, FBA sellers can identify potential areas for improvement or look for opportunities to introduce something completely new.
For example, if a customer complains about the lack of storage space for a specific product, the FBA seller can develop a new version that solves this problem. Likewise, if customers have expressed dissatisfaction with the quality of materials used in an existing product, then a better-quality alternative could be introduced.
Carefully reading customer reviews and responding to their needs, FBA sellers can create products that not only meet but exceed consumer expectations and generate more sales.
Aside from low competition, price is also an important factor. Price it too low and you’d only settle for a profit margin lower than 5%. Price it too high and you’d barely make any sales.
When selling products online, it is important to ensure that the price of the product reflects its value and profitability. As an FBA seller, it is essential to set your prices so that they cover your cost of goods, while still providing enough margin for profit. Aiming for at least 10x the cost of goods price is a great way to ensure that you can make a profit from your sales. Additionally, it is important to consider the competition when pricing your product; if there are similar or competitive products available for sale, setting too high of a price could cause customers to purchase the alternative instead. Setting the right price for your product will help ensure that you remain competitive and continue to generate sales. Ultimately, the goal should be to find a balance between price and profitability. By taking all factors into consideration, FBA sellers can make sure that their pricing strategies result in maximum profits.
So, what’s the best price? Set it below $60 (or $59.95 if you want) and you’d make a profit. Of course, you have to consider other factors too but below $60 is a safe figure for those just starting in the business.
Anything lower than $10 won’t do you any good. FBA fees and other charges will eat up any possible profit.
Selling products that can pose a risk to your customer’s health or may jeopardize their safety is too risky for new FBA sellers. Try not to sell cosmetics and food supplements that require safety and health approvals for now.
When it comes to selling products online, simplicity can be a seller’s best friend. By offering simple products with fewer features and components, FBA sellers can reduce their risk of experiencing problems related to product quality and functionality. Complex products are often difficult to source, expensive to manufacture and may even require additional safety and health approvals before they can be sold. Additionally, complex products often require more customer support and technical maintenance than simpler items; this could lead to costly customer service costs and dissatisfied customers.
By sticking with simpler products, FBA sellers can avoid the hassles of dealing with complex items while still providing customers with products that meet their needs. Simple products are also easier to manage, allowing FBA sellers to focus their efforts on marketing and customer service. Ultimately, simplicity can help maximize profits while minimizing the risk of customer dissatisfaction. Therefore, it is beneficial for new FBA sellers to focus on simple products as they start out in the business.
In addition, fragile items such as ceramics and glassware can break during shipment, and you’ll have to pay for return costs. So, choose products that are easier to ship.
Amazon FBA sellers can strike gold if they sell products that fulfill a need or solve a customer’s problem from popular categories such as apparel, baby, garden and outdoors, home and kitchen, jewelry and toys. However, making decent profits in your FBA business requires more than that. You need to consider price, seasonality, risk and competition to help you narrow down your search.
Overall, when it comes to selecting the right product for Amazon FBA, there are many factors that sellers need to consider. From pricing and competition to seasonality and risk level, these tips should help you narrow down your search for a profitable product. Ultimately, by taking all of these components into consideration before investing in an item or listing on Amazon FBA, you will be better prepared to maximize profits while minimizing potential risks associated with selling online.
Remember, the better you refine your product ideas, the better niche product you can offer to the market.