Survey reports say that 64 percent of Amazon sellers make money in their first year. And one of the most important reasons for this is the items they offer. How do you select the most profitable items that you can invest your money in?
The first goal is to determine the factors that make a product successful for Amazon sellers. Things to look at include the weight of the ship, its durability popularity of the category, competition, wholesale prices, Amazon seller fees, and shipping costs.
It’s also essential to consider the market demand and any restrictions that might hinder sales.
Certain categories are more popular on Amazon than other categories. This is something to consider when you create the foundation of your Amazon brand.Â
The following chart shows that the categories of fashion and health, products, electronics, and other items are likely to witness significant growth in the next few years.
Here are the steps and tips for finding items that will be successful to sell on Amazon. Amazon:
Use Amazon Sales Data
Amazon lets anyone view the most popular items according to sales figures using an Amazon Best Sellers list. This list can be a good starting point for conducting research on products and identifying successful product ideas.
This Best-Sellers List is organized according to the standard departmental categories and subcategories within these categories.
Check out Sellerapp’s Amazon statistics blog to understand the current statistics of Amazon.
You can switch between sub-lists to view various indicators, for example,
- New releases: Amazon listings with a rising trend in sales and more products that will be released soon.
- Movers and Shakers: the top gains in sales rank in the last 24 hours. This list may highlight trending fashions or the seasonal market.
- Most wished Items are frequently included in Amazon Wishlists and Registries. The list doesn’t display purchases but can give you an idea of the level of interest from customers.
- Present Ideas for Gifts: These are the most sought-after items purchased for gifts. This page can be a great gauge of the best-selling items within the niche category for a variety of specialties as well as seasonal and holiday-related products.
Explore these lists to find the most promising products and categories. Find products that don’t depend on the popularity of a brand’s name and ones that are quick to deliver.
Also, you should focus on items that are priced at a reasonable cost. For newbies, it’s recommended to sell low-cost items. This reduces the risk to your finances that comes from selling them and will allow you to increase the variety of your stock.Â
The good news is that the majority of the best-selling items on Amazon tend to be low-cost products.
After you’ve developed a sense of the consumer’s appetite and some suggestions for products that will be profitable, you can start to conduct keyword research and focus on the specifics.
Conduct Keyword Research
To be able to sell smoothly on Amazon the product must be well-known and easily accessible to shoppers. Conduct keywords to find out if the product you are considering purchasing has the appropriate proportion of traffic and competition to be successful.
Amazon’s platform utilizes an in-house search engine that works similarly to Google. Searchers type in keywords to locate results, and the information generated by these searches can be utilized to gain valuable insights into these variables.
Finding keywords that have low to moderate competition is the most effective formula to create a successful product.
There are a variety of Amazon seller tools to assist you in doing just that. SellerApp is a top seller due to its powerful paid features that extend beyond keyword research.
Here’s what to be looking for when doing keyword research:
- High search volume: Look for products with keywords that have more than 500 to 1,000 monthly searches.
- Low competition: Take into consideration the number of competing products and the brands that dominate these sales.
- It is easy to locate items that consumers can search for and then list under different keywords and categories.
- Low BSR Search for related product keywords which have an unsatisfactory Amazon Best Seller Rank (BSR). This is the number that indicates how often the product is sold on Amazon. The less the BSR is, the higher the sales. What constitutes a great BSR differs by class, but anything under 5k is considered to be a good number.
- Customer reviews: Search for similar products with an abundance of reviews. You should also prioritize products that have positive reviews.
Consider Amazon Product Restrictions
Amazon has a long list of restrictions on products that are in addition to typical FTC guidelines and rules. This list of restrictions must be taken into consideration when deciding on the products to market, particularly for beginner and intermediate sellers.
Restricted & Prohibited Products
Amazon’s restricted items include products that are governed by state or federal laws, as well as items that are subject to conditions or susceptible to misuse and false representation.
Certain restricted products, like electronic cigarettes, tobacco, and lockpicking tools are completely banned. However, the majority of restricted products can be sold, provided that they adhere to the market’s strict rules, which differ according to the item.
These rules are usually simple and easy to understand So don’t be afraid to reject the possibility of a product because it is on the restricted list.
Beyond these regulations, all products that claim to have been FDA-approved or feature the FDA logo or images must meet additional standards. Visit the FDA website for more details.
Pre-approval Category Requirements
Amazon’s restrictions also contain the requirement for pre-approval to list items in specific categories, like jewelry and watches, music, collectibles, and much more.
The process of pre-approval requires more time effort, money, and effort but it’s not guaranteed. This hinders sellers from negotiating with these types of categories.
The specific requirements and limitations differ for each gated class, and certain products have their own rules, but most of them require the payment of fees, passing tests of performance, and providing additional documents.
Read the Reviews
Reviews can be a major element in the success of a seller. It’s the reason why it’s helpful to concentrate on products that have many positive reviews.
This attribute is not only a reflection of the product and the buyers they attract, paving the way to the creation of a profitable listing.
There’s another benefit to seeking reviews that aren’t perfect in your research on a product
A surefire method to launch an item that will be successful is to fill gaps in the marketplace. Amazon reviews of products are extremely helpful in identifying the issues that consumers face and then making them into listings that have an advantage.
When you find an item that addresses the problems of the consumer that are discussed by reviewers, your product will be more likely to sell better than the competition directly.Â
In this scenario, ceramic mugs with a lid that is dishwasher and microwave-safe would make a strong impression.
Calculate Profitability
Once you’ve found an appealing product to market it’s essential to calculate the numbers before investing.Â
The product you offer must have a sufficient margin that you can cover your overhead expenses, which includes Amazon fees, and yet remain profitable.
There are numerous tools to determine a product’s profit. The free, simple website SellerApp lets you enter granular information such as the product’s cost as well as a delivery method, package details, and Amazon seller’s plan types.Â
Then, it takes into account Amazon’s fees and calculates your possible gross profit and return, and margin.
Other apps provide the same functionality as well as a myriad of other features that can assist you in managing sales on Amazon.
Recommended Guide: How to increase sales on amazon in 2022.
