Discovering the perfect product to sell on Amazon can be daunting as it involves finding a balance between selecting a product that is not too obscure to attract buyers or too common to face stiff competition. Fortunately, Growth Hustle has come up with some helpful tips to simplify the process of narrowing down your options for selecting the right product on Amazon.
1. Find Products In The Right Pricing Range
The most successful products on the market typically fall within the price range of $20-50, striking a balance between affordability and value. This is due to the fact that moderately-priced items are more likely to be purchased on impulse compared to higher-priced items, which require more consideration and research before committing to the purchase.
On the other hand, extremely expensive products can be challenging for sellers to invest in initially, as it requires a significant amount of capital upfront. Conversely, items that are priced too low are often viewed as having poor quality by consumers.
2. Products That Aren’t Heavy Sell More
It is common knowledge that the weight of an item significantly impacts its shipping cost. However, the size of the package is also a crucial factor that determines the shipping cost, and choosing a larger package can eat into your profit margins. Selecting a smaller and lighter product can help you manage shipping costs and FBA fees more efficiently.
However, it is essential to be mindful of not selecting a product that is too small or light. There is a risk of the package being crushed by other items during shipping, which can be a concern for both lightweight and heavy items, especially if they have fragile components like electronics or glass. It is advisable to opt for a product that is sturdy, durable, and easy to handle to minimize such risks.
3. Keep An Eye Out for Products With Little Reviews
Product reviews are a critical aspect of selling any product successfully online. Potential customers tend to rely on product reviews to make informed decisions on whether or not to purchase a product. However, it is crucial to be cautious when selecting a product with too many reviews. This is because the higher the number of reviews, the more intense the competition for that product. In such a scenario, it becomes incredibly challenging to stand out from the crowd and attract customers to purchase your product.
On the other hand, opting for a product with fewer reviews can be advantageous for your business. With fewer reviews, you have a greater chance of collecting more positive reviews, which can increase your rating and improve your chances of getting noticed by potential customers. This strategy can help you to achieve a higher ranking in search results and ultimately lead to more sales.
4. Know Your Product
The age-old adage, ‘write what you know,’ holds true for selling products as well. When you have a deep understanding of a product, you can craft product descriptions that are not only accurate but also persuasive. You can highlight its unique features in a way that resonates with potential customers and convinces them to make a purchase.
In addition, being familiar with a product allows you to identify the best complementary products to offer alongside it. This can lead to increased sales as customers are more likely to purchase additional items when they are presented with relevant and complementary options.
However, the passion you have for a product can be infectious and positively influence potential customers. When you are genuinely enthusiastic about a product, it shows in your sales pitch, and this can increase the likelihood of customers giving it a try.
5. Determine a Product Margin of No More Than 25%
When it comes to selecting products to sell on Amazon, finding items that offer a healthy profit margin is crucial. One way to ensure profitability is by choosing products that are priced at 25% or less than what they sell for on Amazon. This may require a bit of math, but it is a simple calculation that can be done by estimating the profit per unit and return on investment.
Fortunately, there are many tools available to help sellers calculate these metrics. Look for a tool that includes fields for product cost, product price, product size, product weight, monthly storage fees, pick and pack fees, estimated monthly sales, total FBA fees, product profit per unit, and return on investment.
It’s important to note that sometimes the more expensive or lower-selling items can offer the most profitability. It’s crucial to carefully analyze product margins to determine which products will yield the highest profit margins.
By using these tools to evaluate potential products, sellers can make informed decisions that increase their chances of success. Selecting products with a healthy profit margin is one of the keys to success on Amazon and can make a significant impact on a seller’s bottom line.
Selecting the right products to sell on Amazon can be a daunting task, but by following some key strategies, sellers can increase their chances of success. Start by researching product niches and competition, and look for items that have healthy profit margins. Consider the size and weight of the product, as well as any potential shipping costs or FBA fees.
Additionally, pick products that you are passionate about and knowledgeable of, as this can help you write compelling product descriptions and convince customers to try your product. By using the tips we provided, sellers can make informed decisions when it comes to product selection and increase their chances of success on Amazon.