Amazon’s FBA (Filfillment by Amazon) service allows merchants to sell products on the online marketplace without any physical contact.
Merchants import their stock, send it directly to an Amazon warehouse, and can start selling on Amazon immediately.
Amazon takes care of shipping, customer service, and returns for the seller.
These times, the question arises whether the FBA service is still worthwhile for sellers, or is it no longer profitable at all?
What strategies must Amazon sellers choose?
In the following, I present the Out-Of-The-Box Strategy that still makes it possible to find profitable products.
Competition is increasing in every market. The number of Amazon Sellers has also risen significantly in recent years.
As a result, many niches are already occupied by profitable sellers.
Therefore many niches and products are offered in a wide variety of variants by a large number of sellers.
In these times, it has undoubtedly become more challenging to discover profitable niches for yourself.
For Amazon Seller, it used to be customary to offer small and light products and bring them to the market.
Logical, as small and light products do not consume as much starting capital as, for example, a large electronic device.
But does this strategy still work? Or are all niches already occupied by profitable sellers?
With the out-of-the-box strategy, Amazon sellers can find precisely those products that still have a lot of potential.
These are precisely the products and niches that no other seller dares to enter.
The strategy is based on the idea of looking for precisely those product categories where there are high barriers to entry and therefore, less competition.
The obvious niches are already occupied by good sellers. That is why this method may be suitable, as previously mentioned above.
So what characteristics should a product have if it is not to be small and light?
In the following, I will present the main features of the out-of-the-box strategy.
High purchase price
Search for products that have a high purchase price. In this way you can exclude a large part of your competition in advance.
Most Amazon sellers, who are just starting out, have a small starting capital.
That’s precisely why they focus on small and light products.
We have already discussed above what effects this will have.
You can also look for oversized products. For such products, however, there are a lot of shipping costs.
Keep in mind, however, that it is not the shipping costs that are at issue, but the margin that you achieve with your products.
And this is usually higher for large and bulky products, which is why oversized products can be a profitable business.
However, if you are ordering oversized products, you should also make sure you have sufficient seed capital. After all, you don’t want to be “out of stock” after a few sales and risk your good ranking in the search results.
Extravagant products, for example with eye-catching colors, also fit perfectly with the out-of-the-box method. Of course, these must not only be products with eye-catching colors, they can also be products with eye-catching shapes.
If you find a product and feel a WOW effect, you should definitely take a closer look.
Another good option is to offer products that are currently only available in standard colors in a striking color.
Maybe a specific target group would like to buy a product, but they only want it in their favorite color.
All in all, on Amazon, just like everywhere else, you should never do what everyone else does.
With the Out-Of-The-Box Strategy, it is possible to discover niches where the competition is significantly lower than in other crowded niches.