Are you starting out selling on Amazon and not sure what products to sell? I promise that I have been there, and arguably the hardest part of being an Amazon Affiliate Marketer is knowing which products have the best margins. Amazon is a massive online retailer, and it can be
It is challenging to know which products will be best to find your niche. The purpose of this article is to give you 10 Amazon research tips and help you decide if this is the right move for you.
Simply put, yes, you can! Amazon is the leader in e-commerce and is gaining in popularity every day. Third-party sales are continuing to increase, which can be seen as huge competition to first-party products that Amazon sells. For perspective, back in 1999, third sales only accounted for around 3% of the companies overall sales; in 2018, this number had shot up to about 58%!
By merely going off the numbers listed above, you can see that third party sales are doing very well on Amazon. Creating a brand and selling it on amazon is an excellent start to your business, whether you are just starting or having a team working with you. You can even handle the essential parts of the business like shipping and customer service, while Amazon will take care of the smaller details with the FBA program.
Through the sections below, you will learn how to be a profitable seller on Amazon, although keep in mind that buying in bulk and selling on Amazon is a terrible idea. The competition for wholesale products is just too cutthroat, I know, because I have previously failed at this business plan. The inventory does not move as much as it would be desirable, and you have the least leverage with this business model.
If you are dead set on using the wholesale business model, it would strongly be advised to invest in logistics for your business. It means having a warehouse and doing your shipping, although even then, this isn't a sound business plan. Even with the Amazon FBA, you will find some logistic issues can still arise.
Because Amazon is a very price-oriented market, consumers will often visit it first if they are looking for the best deal on a particular item. That also means that if you don't offer the lowest price for a product, the sale will go to one of your competitors, and you will be stuck with either a loss of profit or issues with moving the item. That means that your details may sell great one day, but a competitor could be getting your sales the next; there are two types of products that sell best on Amazon:
If you have generic products that you can comfortably sell for the lowest price, these are great examples of what will sell on Amazon. The product brand won't matter, but the low price point will; keep in mind that the most economical price wins as relates to your competitors. This is the main selling point for Amazon.
If consumers were concerned about the brand name, they would purchase it at the brand's website or physical store. However, if they are looking for a particular item and want the lowest price, they will check Amazon first. If you offer either a knockoff brand or have a brandless product, selling on Amazon is always the first place to go.
If you find a product niche that has not been over discovered yet by others, that is also a good instance of when selling through Amazon will take off. As with any type of product, having the right marketing strategy is key here. Either of the two instances listed above generally will guarantee a sale through Amazon, and you will be able to be successful in this particular online Marketplace, which will gain you profit and clear out your inventory for future sales.
The key to successfully selling on Amazon is to target the needs of consumers and sell items that they will purchase, clearing out your inventory, and turning a profit. To make this happen, it is essential to choose the correct types of products to sell. Here are the best selling product categories currently on Amazon:
· Skin Care
· Apparel/ Accessories
· Health/ Nutrition
· Home Decor
· Home and Garden
· Kids and Toys
· Pet Products
Before begin selling on Amazon, you need to bulk up your inventory of items that you have a good feeling will sell on Amazon. Here are ten proven ways to find products that will sell on Amazon:
Like SEO with Google, programs will keep track of the top items that sell on Amazon's platform. Jungle Scout is one of these programs, and is a great start; it will help you discover and validate product demand to start selling the most wanted products. This makes it viable to see how many consumers are looking for a specific product to determine if you want to start selling it.
To promote your products on Amazon and start making as much money as you can, you will want to decide on "low-competition" keywords that Google will trigger product ads. To begin implementing these keywords, you first need to find out what they are; which can be done by completing the following steps:
· Enter your product niche ideas into "Ahrefs Keyword Explorer."
· Click on All Keyword Ideas
· Filter results "Only Include Shopping Results."
· Filter results " Only Low Keyword Difficulty."
· Click on the SERP for each keyword
· Zero in on Low Domain Rank Sites
An excellent way to see that a particular niche is less competitive than others by spotting a lot of low Domain Rank sites on the first page of the search results. Follow the thread and see what products it will reveal.
Although eBay is a different online marketplace, you can still use it for a resource; by merely seeing what is selling. WatchCount.com is a great way to accomplish this; it operates in real-time and allows you to see the most popular items on eBay. This will include ranking and has unique search parameters to narrow down your potential money-making products for Amazon.
Going the way of seeing what the consumers are asking to determine your next big product launch, delve through the user reviews to get consumer feedback. For instance, if you are thinking of selling a particular product on Amazon, go to the product pages and read through the reviews. A few things that you will be looking for are:
What items have top ratings
Why customers are unsatisfied with a particular product
Utilize consumer complaints to find the product that would fix their issues
This way, you will understand firsthand what consumers think about a specific type of product. Take this into consideration when you are for your product, and modify it to get satisfied customers.
As with other products, if you want to sell white label products, you will need to determine what category of these products are considered "big sellers." Once you have a basic idea of which products fall into this category, use Alibaba to search for them, you will be able to find a multitude of products that are offered by oversea suppliers. Research the products using Alibaba to find your next inventory purchase.
The best sellers list on Amazon is a treasure trove of information for your next sale items; it only makes sense to do this, as you will be selling your wares on Amazon. You can narrow down your search results by category, and even some subcategories. It will help to point you in the right direction if you have hit a wall coming up with your next hot item to sell on Amazon.
Because you want to find a product with little to no competition, utilizing Jungle Scout allows you to type in a keyword that relates to your product and determine if it is a low-competition niche. It makes researching specific products more natural and effective to ascertain what would be an excellent product to sell on amazon.
Finding the right market varies by the demand for the product, how much competition the product has, the real opportunities of the product, and the ability to profit. When your product meets these criteria, you can rest easy knowing that it will sell on Amazon.
By finding out where top sellers are selling on Amazon, you can, in a sense, utilize their research for your selling benefit. They have a team working with them to determine what products to sell, so why not use this?
Find known publishers in your niche and type their domain into Ahrefs' site.
Click "outgoing links."
Determine how many links are sent to Amazon
Research these links with anchor text to determine which products they are linked to.
Using the trending topics section of Google will help you determine which products have a higher chance of selling well on Amazon; this feature will show you popular products that you can take note of. Regardless of the niche, you are selling in, using Google Trends has multiple categories to choose from to find the best one. This is a popular search tool that can help filter good from lousy selling products on the Amazon marketplace.
Using a Google Chrome extension, you will be able to browse Amazon by-products that are currently selling very well. There are a few extensions to choose from, and some of the top ones now are:
· Jungle Scout
· Unicorn Smasher
· AMZScout Pro
· Helium 10
· AMZ Base
By using any of the beforementioned extensions, you can thoroughly browse Amazon listings quickly to determine which products may be useful to start selling. You can compare prices, look over margin estimates, find projected revenue, and view keyword insights.
Once you have picked your niche and found what is selling on Amazon well, it is currently time to decide what you will be selling on this online Marketplace. If you already have an idea and used the steps above to confirm that it is viable, that's great! If you need help with picking a product, there are ways to find out what would be an excellent product to list on Amazon.
Utilize gathered data
Analyze ( do you have at least a 40% profit margin?)
We will be going into more detail on each one further down; note that it is essential to compare product ideas and weigh the margins.
Product Search Volume
If you are concerned whether Amazon or Google has more popularity for searching, the consensus is still up in the air on that one, so you will want to understand the search volume of both.
Using search engines as a unit of measurement, Google will use the total number of searches for a specific keyword or group of keywords that are performed by users. These will be kept for 12-month increments, and it is a powerful tool in determining what to sell on Amazon.
To get the most revenue and turn the most significant profit, you will want to find high-searched keywords with low competition. To do this right, you will want to find a tool that can help you get the data compiled quickly. SEMScoop is one such program that is free to use, although there are paid plans available to get the most out of it.
Amazon Search Volume
You will also want to search the Amazon search volume, especially considering this is your selling platform. Once you have found what people are commonly searching for on Amazon, the next step would be to look at any competition. Remember, you want a product with a low competition level; make sure there are not a lot of selling trying to sell a similar item to you.
CAGR (Compound Annual Growth Rate) is a term used to define the rate of return that is needed for an investment to yield a profit; although it isn't a valid metric, it does represent the rate that investment would have grown if it grew at the same rate each year. It will help you in determining long-term growth and profit.
To compile this information,
· Search Google for market research documents; use keywords that include "market growth."
· Look for the free information (or purchase a market research document)
· Use the data to confirm if you will be able to turn a profit on a specific product
Potential Market Size
When you are looking for a product or products to sell, you should always have the term "growth" in your mind. Can you grow a business based on these products? And is there going to be future demand for your product? Consider these questions before you begin your selling journey on Amazon.
Check Potential Margins
As any businessman will tell you before you decide to invest in a product, you need to determine the potential profit margins. That means both wholesale and retail pricing; you want to get the lowest price for the product to make the most profit. Using Alibaba, you can compare the wholesale with the pricing on Amazon to determine the pricing for both.
There are plenty of options related to buying cheaper products and getting the best profit when selling on Amazon. Research and determine whether to choose wholesale of retail merchants to get the best price for buying your product.
Avoid Big Brand Names
You will want to avoid buying brand names, as the product price will be significantly higher. You will also not want to be competing with brand names, because it is almost guaranteed that you will not be successful in doing so. You are a small business, and as such, you want to be competing with other small businesses, not big brand names like Amazon.
After you have laid the groundwork and determined the products that you are going to be selling on Amazon, you will need to set up an account to get started. Setting up an account is secure, and can be done in a few quick steps:
Now that the natural part is over, you can start to perform the necessary product research and picking products that have a high likelihood of turning a profit for you. There are also a lot of selling tools that Amazon offers upon signing up, and it is recommended to take full advantage of these.
The answer to this question isn't black and white; dropshipping is allowed while selling on Amazon. However, many rules and regulations come with this. For instance:
You must be the seller of your products (and identify yourself as such on packing slips/labels)
You cannot identify as a third-party shipper on your packaging.
Must be responsible for all customer returns and complaints
Comply with the Amazon seller terms and conditions
If you are looking to give Amazon some responsibility, you can consider sighing up for Amazon FBA, which will allow Amazon to take responsibility for the shipment of your items. This offers sales assistance and fulfillment by Amazon can make your job and life far more comfortable.
To Make Money, You Will Need Certain Things
Before you delve into selling products on Amazon, it would be wise to create a checklist for yourself to make sure that you are fully prepared.
· Know your product cost
· Have a substantial gross margin
· Evaluate your startup costs
· Know your "break-even" point
· Predict what your revenue will look like
· Come up with a sound marketing strategy and stick to it
Now that you have done the research and have the knowledge of how to get started selling on Amazon, it's time to determine if it is the right fit for you. If you don't want to deal with a lot of technology but want to work from home and be your boss, this is a great way to get started with that lifestyle. You will get the most benefit from selling on Amazon if you introduce a new product that everyone will get on board with. Remember:
While this is a great way to get your foot in the door, it is not exactly the most sustainable fit and you will need to adapt. With more competition, selling on Amazon will get more complicated, and you are less likely to make the profits that you will need to. That said, be prepared with a business strategy and start selling on Amazon.
Many people will use Amazon as a stepping stone to bigger and better things, and that is what I would recommend doing as well. Selling with Amazon is easy, but it is not how your business should be running long term; there are other platforms as well once you hit the ground running.