Do you want to know the key to successful selling on Amazon? That’s simple – sell a product that’s high in demand but with low competition.
We all know that products with great profit margins that generate a lot of sales are key to growing a successful Amazon business. But, often, choosing the right products can be difficult.
Luckily, we’ve discovered there’s an optimum size, price and context for products on Amazon.
Here are e-Comas – eCommerce Made Simple’s six tips for choosing the right product to sell on Amazon.
1. Product size
As products move a lot, this will impact your costing structure and, therefore, your success. Try to choose an item that’s small and lightweight yet durable. Ideally, something that would fit inside a shoebox is a good idea. Smaller, light items tend to be:
- Cheaper to buy: finding lower-cost items means you can reduce the investment you need to start selling on Amazon.
- Cheaper to ship: of course, the more an item weighs, the more it’ll cost to ship. Factor in weight, especially if you want to import items from China.
- Lower in fees: Don’t let large, heavy items cut into your profit margins. They will cost you more if you plan to use Amazon’s FBA program.
2. Product price
If your product is too cheap, logistics will kill your profitability, but if it’s too expensive, your market shrinks. What’s more, high-priced items don’t sell as well as lower-priced items, and the cheapest items don’t offer great profit margins.
Try to aim for products that retail between €50 to €150, with a perceived value of at least 20–30% above the price tag. Products in this price range tend to be impulsively purchased more than expensive ones and are easier for you to get started. Therefore, they’re more likely to offer good margins and sales volume.
3. Choose the right category
- Toys & Games
- Home & Kitchen
- Lawn and Garden
- Beauty and Personal Care
There are other profitable categories, but this is a good place to start. It’s also important to keep in mind product restrictions and red tape for categories such as clothing, jewellery and cosmetics. Take the time to find the right niche for you.
4. Build your brand
Amazon specifically looks for brands and gives extra benefits to brand owners. You can display your products better and increase your sales conversion rates by 30–40%.
Speaking of brands, it’s important to remember that some categories have stiffer competition with big brands leading them. If household names dominate the top results, it might be a good idea to reconsider your product.
5. Choose easy-to-understand products
Try to choose products that you can easily understand their purpose just by seeing a few photos. These are the ones that have the most impact. A product that is easily recognisable and/or can provide great photos is ideal because high-quality imagery increases conversion rates.
Think about the visual effect of your design in the way the product can be seen (or viewed on a video — which is growing more in popularity now).
6. Product availability
It’s simple to say, but not always to do: make sure you have plenty of stock to grow and support your brand’s growth. Also, consider products that have low seasonality. It goes without saying that selling evergreen products that can be sold throughout the year results in steady sales in the long run.
So, to recap, what does our dream product look like?
- Compact and lightweight (or great ratio of value-to-size)
- Priced between €50–150
- Top-selling categories
- Branded products
- Photogenic USPs
How to find the right products?
There are several ways you can research the right product for you, each with varying difficulty.
Find a gap in the market: the most straightforward option – what’s missing from your life? If you have an inconvenience in your life, chances are so do other people. If you can create a product or find a gap that’s not filled that solves the problem, you’re onto a winner.
Manually research on Amazon: start with Amazon’s best-selling items. Explore specific categories and sub-categories to help you niche down. Then check the search volume on Google keyword planner or Helium 10’s Magnet² tool for each product to gauge their levels of demand. The downside is manual search will invariably take a long time.
Use an Amazon tool: there are tools like Helium 10’s Black Box that can do the heavy lifting for you. You can use Black Box to find the best product ideas based on your exact needs, niche and preferences.
Storfund accelerates your marketplace payouts across multiple geographies and allows you to manage your finances in one place. Storfund helps e-commerce sellers drive sales and increase profitability by shortening their cash cycle, thus allowing them to purchase additional inventory and never run the risk of being out of stock. Our clients receive their sales the same day, irrespective of the marketplaces’ actions, be it rolling reserves or 14- or 30-day payment cycles. Storfund is available in 17 Amazon marketplaces and in the French marketplace Cdiscount. We work with companies registered in the European Economic Area (EEA), the United Kingdom, the United States, Canada, Australia and New Zealand.