Amazon is taking over the world of e-commerce. And why not get your piece of the profit? You can make a great income selling products in the virtual marketplace.
Fulfillment by Amazon makes processing and shipping orders simple. The system streamlines filling online orders, making it easier for anyone to start selling online. Amazon handles storage, fulfillment, and customer service. This allows you to focus on choosing the best merchandise.
But with the number of products sold on Amazon, it can be tough to find your niche. Luckily there are tools you can use to find the products to result in the highest sales and profit. Here are some simple ways to identify the most profitable items to sell.
Find The Right Price Point
Customers head to Amazon for convenience. Many shoppers order items on impulse. Having a pricing strategy that encourages fast decisions will boost your sales. You can use things like an Amazon fee and profit calculator to help you figure out what kind of price point will still turn a profit, yet entice customers to buy from you.
Consider how shoppers purchase items at different price points. Higher priced items are seen as more of an investment. They usually require more research and shopping around by consumers. Shoppers often want to visit stores to try out or view more expensive items in person.
Try to choose items that can be priced under $100, and ideally under $50. Think about at what price point you are willing to buy an item with little research or consideration. The more you can appeal to impulse buyers, the higher your sales numbers will be.
Keep Your Investment Low
Obviously, the less you invest in your product, the more profit you will make. Keeping your costs low should be a priority in choosing your products. You will also need to evaluate your options for sourcing your product.
One of the most popular ways to keep costs low is by importing your items from overseas. Many Chinese based companies sell products at an extremely low cost. This allows you to more of a mark-up window for a higher profit.
Vet your suppliers carefully. You want to reach out to several manufacturers and get quotes to compare. Once you narrow it down to a few, it’s a good idea to order an item from each one. You want to make sure you are stocking and selling a quality item.
Make sure to factor in overhead costs. You want to include Amazon fulfillment fees in your calculation. The charges for storing your items will need to be factored into your margins. You will also need to consider inevitable losses from damaged products and customer returns.
Look For Popularity
Do some research to find out what consumers are buying. You will want to research buyer behavior on Amazon, as well as elsewhere on the web. Also, finding out what people are searching for on Amazon will help you decide on products that are more likely to be found by shoppers.
Check out the best selling categories on Amazon. Books and movies are always popular. But categories like food are making a big leap in popularity. Think about the time of year you are entering the marketplace. You are more likely to succeed in the toy category during the holiday season, for example.
Jungle Scout is a great site to determine the popularity of products. It will provide you with data on what shoppers are searching for and ultimately purchasing. It has several planning tools to help you start and plan your sales. There is even a training academy with tips and tutorials from experienced sellers.
You can also use an SEO tool to determine how customers are searching Amazon’s site for items. This will help you figure out the most in-demand items so you can decide what product to sell. It will also help you write product listings that are more successfully found in searches.
Avoid Strong Competition
You want to find your own niche on Amazon. Your best bet is to find an item with the least competition possible. You don’t want your product to lose the chance of being considered against a dominant brand in the same category.
Focus on categories that aren’t already saturated with sellers. Search the keywords for the products you are considering. The fewer results for your product’s specific keywords, the more likely it will be successful.
Also, look for categories and products with a more open market share. If your product falls into the same search results with a huge name brand, it isn’t likely to be competitive. You will be more successful in categories where sales are spread over a variety of brands.
Reviews drive online sales. So look for a category where the competing products have as few reviews as possible. The number of reviews determines where items are listed in search results. Your product will gain a higher listing position faster if you don’t need to fight to overtake competitors with a huge number of reviews.
Consider Size and Shipping
In online sales, shipping is a large component of the business. Think about your costs of getting your product to your customers. It’s also important to consider the storage of your items.
Your shipping costs are decided by the size and weight of your item. Your Amazon fulfillment fees are as well. If you choose to sell an oversized product, you are looking at significantly higher costs on the backend eating into your profit.
You will also likely invest more in merchandise if you choose a large item. You might make a larger profit margin. But you will need to calculate carefully to account for a large number of overhead fees and shipping.
You also want to consider the ease of shipping the item. Is it extremely fragile? Does it need to be kept frozen? This can turn off buyers from purchasing the item online as well as complicate your shipping process and costs.
Amazon is a great way to get your product in the hands of millions of consumers. The trick is finding a product that stands out on the already crowded marketplace. And making your product appealing and easier for shoppers to find.
Finding the best product to sell takes a multi-factored approach. But once you figure out how to select and market products, you can expand your offerings and grow your profits. And see success as part of the booming e-commerce industry.