Fulfilled by Amazon (FBA) is the world’s largest online selling platform. How do online entrepreneurs manage to break even and make high profits in a highly competitive marketplace? How do you determine the best and top-selling products?
If you are an aspiring Amazon seller or an online entrepreneur, read this guide to understand how you can find the right products to sell on Amazon.
1. Get the Products with High Demand but Low Competition
The above strategy sounds almost impossible in a highly competitive online market. However, it is possible to sell high-demand products at a low cost.
The best products to sell should retail at between $25-$50. Market research shows that most people purchase products within this price range. The price range is suitable because it helps you cover selling costs quickly.
2. Manually Conduct Research on Amazon
If you have decided on the products you want to sell, take your time to research the major players in the market. Check the number of sales other sellers make to avoid wasting your time on slow-moving products or products that do not sell. There are several tools to help you research the best products to sell on Amazon. Read here to find the best tools for conducting product research.
3. Weigh the Competition
Another factor to consider is the competition in selling the said products. To determine the level of competition in the products you are selling, go through the reviews.
The higher the number of reviews on a product, it means the competition for that product is relatively high. Go for the lesser competitive products with less than 50 reviews on the product. It means the competition is manageable, leaving room for a new product to enter the market.
You can use various tools to help you determine the competition. The right software can help you identify and check your competitor’s sales and performance in the market.
The Amazon Best Sellers Rank (BSR) helps you find out both the recent and historical sales of a product. If the BSR is high, it is an indication that the product is in high demand.
To break even and make profits as an Amazon seller, avoid too much competition. Although competition is right in the marketplace, avoid dealing with products with too many sellers.
4. Introduce New Products in the Market
Using a simple organic search, you can introduce new products in the Amazon marketplace. Find a gap in the market and fill it.
Once you have created your product, emphasize what makes your product special. Ask yourself why would someone want to buy your product, and make a point of describing your target audience.
If your product is seasonal or suits better to be launched in a particular part of the year, launch it when its interest is highest. People out there are looking for everyday products but with different modifications.
5. Deal With the Products that Sell
The golden rule is to ditch what you like and sell what sells when selling on Amazon. It minimizes the risks of selling products that do not sell quickly. This is a significant part of planning what products you want to sell. You want to make sure the products you are selling are something that users would actually want to buy, so focus on the users’ needs.
Make use of the chrome extensions to research Amazon keywords. It will help you find out what products are high in demand and most searched for on Amazon.
Planning, research, marketing and many more factors play a role in how successful you are as a seller on Amazon.
It is essential to conduct product research and track your possible competitors. And making sure your product has a unique selling proposition and a target audience can play a significant role in introducing your new products to the market. Selling on Amazon can fetch you high profits. However, you have to stay on top of your game by selling high-quality, unique, and reasonably priced products.