An initiative by the world’s largest online selling marketplace, Fulfillment by Amazon (FBA) helps businesses store their products at fulfillment centers while being responsible for packing and shipping the products.
By signing up an account with Amazon FBA, you place your delivery process and customer service support in their hands. Also, doing so allows you to focus more on your business and not worry about shipments and customer relations. More importantly, you get to reach out to millions of users shopping on Amazon – 300 million active users and counting.
If you think Amazon FBA is not for you because you don’t have any products to sell this post will help you determine what to sell on Amazon.
WHAT TO SELL ON AMAZON
The most crucial component of your Amazon FBA strategy is that you need to figure out what to sell. Here are 6 ways to find the best products to sell on Amazon.
- Discover Profitable Products
You need to identify products that meet most of the criteria such as shipping weight, popularity, category and competition that makes a product profitable.
Consider three things: Shipping cost, wholesale pricing, and Amazon Seller fees and then try to purchase products considering the following specs:
- The cost should be 25% to 35% of your target selling price
- Your target selling price should be in the range of $10 to $50
- The product should be lightweight including box and packaging
- Simple and sturdy items that would reduce the risk of loss from damage
- Evergreen or everyday use items
- Better quality products when compared with the competition
- What Others Are Selling
Small-scale sellers are making it big by selling niche items – from handmade items to unique items -reducing the competition from large sellers and from Amazon itself.
Amazon is a really good place when it comes to upselling products as it keeps a section showcasing recommended products underneath a product’s description. This encourages buyers to consider the products that are being showcased.
- Check For Competition
You need a product that is priced profitably to bring in profits, is found and shipped easily and in demand.
Below are the key factors that determine whether your product meets these criteria
- Products that are currently not being sold
- Similar items that have Amazon’s Best-Seller Rank (BSR) of 5000 or lower
- Items that can be searched under multiple product categories and keywords
- Leading product keywords having not more than 10,000 searches/month
- Similar product listings having less than 50 reviews
- Size Matters
Many FBA courses recommend that you sell a product that would fit inside of shoebox reason being your shipping and fulfillment costs for that item are going to be much lower compared to selling heavy items.
But it isn’t necessary that your product has to be small and light to be successful. There are plenty of oversized items that do extremely well, however, you should know the dimensions and weight and which tier you’ll fall into before you decide to buy a product.
- Select Your Source
When you are done researching on which products to sell, you should start thinking about sourcing them.
A category can make or break an item.
But firstly, you would want to familiarize yourself with the categories that are gated. The most common gated categories are
- Health and beauty
- Travel products
You can only be approved to sell in these categories if you have a professional-level FBA account. Once you are granted approval, you can sell freely in those categories as you would in the open categories.
Amazon accounts for nearly half of all online sales offering a lot of profitable opportunities for sellers. Before you shortlist products to sell, concern yourself with market research focusing on creating a remarkable buying experience for your customers.
It’s not just about how many products you can sell a day, it’s about is how many repeat customers you can get. This will help you become a successful seller on Amazon.
All the best!