If you’re looking to start selling on Amazon but don’t know where to start, this guide is for you. I’ll show you how to find a good product and get started ASAP. I remember when I first decided that I wanted to sell on Amazon. I had no idea what to sell on Amazon FBA or how to even go about finding one. But after doing some research and trial and error, I finally found a good product and got started with my business. And now, just a few short years later, my business is thriving!
So if you’re wondering what to sell on Amazon FBA, read on for the ultimate guide.
Why Should You Sell on Amazon?
Amazon has almost become a synonym with e-commerce. In 2018, it had sales of $232 billion, more than the GDP of all but 33 countries in the world.
There are many reasons why Amazon has soared in popularity.
You can use Amazon to sell both physical goods and digital products.
Amazon has become the go-to marketplace for many shoppers because of its huge selection, low prices, and fast shipping.
As a seller, you can take advantage of this by using Amazon to reach a large audience of potential customers with minimal effort.
With Amazon’s Fulfillment By Amazon (FBA) program, you can tap into its world-class logistics network to have them handle storage, shipping, and customer service for your products while you focus on growing your business.
In 2018, there were over 200,000 sellers on Amazon doing over $100,000 in annual sales. This is thanks in large part to the fact that there are over 300 million users on the online marketplace.
When you list items for sale on Amazon.com, you will be responsible for all of the costs associated with selling the item. This will include the cost of getting the product to an Amazon warehouse, and then the cost to ship it from there to your customer.
Selling on Amazon can save you a significant amount on shipping costs, as they can get deep discounts from carriers. This can result in savings of 50-80% compared to shipping the items yourself.
How is Amazon Different from eBay or Shopify?
Though Amazon does purchase some of its products, like Walmart would, over 50% of Amazon’s sales come from third-party sellers.
(Source)The biggest difference between the companies is how fulfillment works.
eBay takes on the responsibility of shipping products to customers who order items from their website.
With Fulfillment by Amazon, you handle all shipping and customer service.
The Best Products to Sell on Amazon FBA
Now that we’ve gone over selling products through Fulfillment by Amazon, it’s time to figure out what you’re going to sell.
Here are some basic principles to remember.
How to Find a Good FBA Product
If there are already a few companies offering the same product or service, it means there is a market for it. This also means that customers are willing to pay money for it, making it a profitable venture.
A product that doesn’t have any competition in its market isn’t necessarily a good thing. It could mean that the profit margins are too small, or that the product has other flaws that haven’t been discovered yet.
On the other hand, too many competitors could be a bad sign. If you find a great product and all your competitors have 2000+ 4-5 star reviews, that means you might be biting off more than you can chew without significant connections or resources.
The easiest way to find success on Amazon is to look for products that are similar to the ones you’re selling but have fewer than 50 customer reviews. If some of the higher-ranking products are getting a few bad reviews, you can capitalize on that by improving on what’s missing. This will allow you to leapfrog over your competition.
You can use this information to find a good potential FBA product.
Target Products That Sell For Under $100
This isn’t a hard and fast rule, but if you’re just starting out, it’s ideal to consider selling products that cost less than $100.
If you have the financial resources to pursue a high-priced product line, it can be a successful route for you as a seller.
Most new sellers on Amazon run into the problem of needing a large initial investment.
Although products that cost over $100 may seem to have greater profit margins, the reality is that these margins are often no greater than those of products that cost $25 or less. You can typically expect to make between 15-45% profit on each unit sold for both types of products.
If you’re looking to maximize profits, it’s generally best to go for the more expensive product. While it requires a higher initial investment, you’ll make that money back and then some in the long run.
As you creep over the $100 mark, you are no longer in the realm of impulse buys. You are now talking about larger purchases such as laptops, TVs, and furniture. These items require more research from the customer before they make a purchase.
When making these types of purchases, customers are more likely to consult with their spouses, read more reviews, or look for videos on YouTube. This extra research helps ensure they’re making the best decision for their needs.
The further you are from the range of impulse buys, the fewer customers you’ll have.
When starting out with Amazon FBA, it is advisable to go for high-quality items that are less expensive. This way, you can build up your small business before moving on to bigger ticket items.
How To Choose A Product To Sell On Amazon
The Bestseller Rank (or BSR) of an item is a number that helps sellers decide which products they should sell. Click To Tweet
If you see products with a high best seller rank, it means that there is high demand for them.
If you sell products that are very similar to those that are already bestsellers in your niche, you can piggyback on their success. This will attract the same target audience as the bestselling books and convince them to purchase from you.
You want to see several products with a 3,000+ BSR. This shows the product is doing well.
On the AMPM Podcast, they recommended looking for the top three results with a 3,000 or less BSR.
This shows the demand is high for these products, and that the market is receptive to new competitors.
A product with a high BSR is more likely to be in demand than other products, making it a good choice for your pet supplies business.
Find a popular product with a lot of searches. If there are a lot of searches for the product, but there are no major players, it is an opportunity for a new company to enter that space.
Look for opportunities where your competitors are missing out on optimization for a particular keyword. For example, they might be ranking high for “best starter chicken food,” but if that phrase isn’t included in their product description, you could have a chance to beat them to it.
If you want to optimize your FBA business and outgrow your competition, then you need to find missed optimization opportunities. This type of optimization can help you if there is enough search volume. Without search volume, you will not be able to improve your ranking or sales.
You don’t have to guess which books will be popular. Just look at Amazon’s bestsellers, and you’ll know.
There are a lot of different ways to learn how to make money selling products online, but not all of them are created equal. While learning through trial and error can be a good way to learn, it can also lead to a lot of wasted time, money, and effort. Luckily, there are tons of resources available to help you learn how to start a business, including Amazon.
When I found a product in 2017 that made $4,399 in 30 days, I used Jungle Scout, a software tool that helps me find the best keywords and the least competitive markets. As a 30% off special for Niche Pursuits readers, you can use the same tool for your own Amazon business.
What to Sell on Amazon FBA: Product Criteria
To ensure that you select the best products for Amazon FBA, there are some criteria you need to follow. First, it is not a good idea to try to sell designer brands or well-known products.
Amazon is not the right place for this! Amazon is, naturally, the best platform for selling own-branded products at affordable prices.
Most Amazon shoppers are not interested in purchasing high-end, brand-name products. They are interested in finding a decent product that is affordable and looks good.
This strategy, however, does mean you will potentially be going head to head against other sellers offering similar products. To make your product stand out amongst the competition, consider taking the ‘similar but better’ route.
You can sell the same product but under your brand name and offer something extra. It doesn’t need to be something huge, but it can be faster shipping, better product listings, and better service. Let’s take a look at some of the most important criteria to consider when deciding what product to sell on Amazon FBA.
Choose a Lightweight Product
When selling on Amazon FBA, it is important to consider the size and weight of your product. Heavier and bulkier products may require more complex shipping. Amazon will store your product for you, but the amount of space it takes up in its warehouse is an important consideration. If you choose a slow-selling product, you may be charged extra storage fees.
You will need to take into account the shipping costs from the manufacturer to Amazon FBA. The bigger and heavier the product, the more those costs will be. Remember, many buyers will expect free shipping even if they are not Prime members.
To ensure your product is ideal, it should be small and lightweight. You will want to avoid products that are easily damaged, so look for products that do not contain glass or delicate parts.
Brand Your Product
These days, it’s more profitable to private label your products on Amazon FBA than to sell unbranded generic products. By private labeling your products, you’re essentially branding them as your own. This allows you to differentiate your product from others on the market and command a higher price point.
Private label products are simply goods created by one company and branded and sold by another company. The usual process is to get your branding done at the manufacturing stage, although you may decide to source unbranded products and then simply label them with your own brand yourself – this is the cheaper (but less professional) option.
Choose a Product that Solves a Problem or Fulfills a Need
If you are trying to sell a product without addressing a specific need or solving a problem, it will be much harder to succeed with Amazon. Most people use Amazon to browse for specific items, so it’s unlikely that someone would randomly come across your product.
For instance:
The teen who is worried about their pimples, the parent who is concerned about their baby’s safety, the artist who is on a budget, and the shopper who is on trend can all find something they need on our site.
You’ll find that almost every product can be classified as solving a problem or fulfilling a need, though sometimes it may be difficult to see how. This is because every product serves some purpose, whether it’s to make life easier or provide entertainment.
Choose an Uncomplicated Product
When deciding what products to list and sell on Amazon, electronics is a popular option. This is because it appeals to a large market of potential buyers.
Electronics can be very profitable, but they can also be problematic. Some products have restrictions like shipping with lithium batteries, and certain items can malfunction. Make sure you choose your product wisely to avoid problems.
When it comes to clothing and footwear, you’ll want to make sure you have a good selection of colors, sizes, and styles on hand. This way, you can be sure to have something for everyone who comes into your store.
There are a few products you should stay away from if you’re looking to simplify your dropshipping business. Food, toys, and batteries are all examples of products that may require special certification or documentation.
Choose a Non-Seasonal Product
Selling products that are only relevant during certain times of the year can be risky. Instead, focus on selling products that will be in demand all year round.
You should not choose to sell products such as Christmas lights, Valentine’s Day gifts, or paddling pools. Ski accessories would also be an example of a product that should not be sold.
Adding seasonal products to your inventory can help you achieve additional sales, but they should not be your main product line as seasonal fluctuations will occur. Having a diverse range of products is essential to weathering the storm of seasonality in the market.
Getting Started – How to Find Your First Product
If you haven’t created a Seller Central account yet, you can follow the instructions in the article. Once you have logged in, you should see a page that looks like this:
Now, how do you go about finding a product that you can sell online?
If you are doing Retail Arbitrage, you want to buy anything that you can resell for a profit.
If you are selling products through a private label method, then you should remember that the riches are in niches.
If you’re looking to private label a product, it’s important to find one with moderate search volume. You can determine keyword volume by using a free research tool like Helium 10. This will help you find products that are less competitive and have the potential for more growth.
The Keyword Research Tool, or “Magnet”, is free to use.
The search term “garlic press” has been used on Amazon.com 52,949 times in the past month.
There are only 2,327 searches for a stainless steel garlic press each month.
If you’re looking to start selling products online, we suggest going with something like the Stainless Steel Garlic Press. These are often made with higher quality materials and are more durable than cheaper plastic models.
I always make sure my products are profitable. If I buy a product that costs $20, then I’ll make sure to sell that for $20 or more.
If you want to sell a $20 product for $60, you’ll need to markup the product by 3 times.
What Are The Costs of Selling on Amazon?
There are five primary costs that you will be charged by Amazon Web Services: referral fees, outbound FBA shipping costs, inbound FBA shipping costs, advertising costs, and monthly storage.
15% of revenue is paid out as referral fees.
When ordering something from Amazon, the shipping cost will depend on the weight and size of the item.
Although you don’t need to advertise, it can certainly help increase your sales. Expect costs typically between 10-20% of your total sales.
On top of these costs, you’ll also have your manufacturing, shipping, and any associated duties.
Start Selling on Amazon FBA
There you have it. You now have everything you need to get started with Amazon.
Now that you’ve learned what to sell on Amazon FBA, the only thing holding you back is you.
Don’t just randomly pick a product and contact a supplier. Choosing a product that doesn’t fit your market or audience can be a costly mistake.
The key to success lies in understanding what people want and meeting their needs. When you can provide what people are looking for, they will be more likely to buy from you.
