Making money when selling on Amazon is largely dependent on the product that you choose. There are over 2 million active sellers on Amazon, and the list keeps growing. With all the competition, Amazon is still leading the online market place. Finding the right product to sell can boost your income on Amazon. It is good to research well before you venture into this business as it can also lead to loss of revenue. You don’t know what to sell on Amazon? We have got you covered as in this article; we are going to look at various ways that can help you identify what you want to sell on Amazon. These strategies include:
Understanding demand and competition.
An ideal product to sell on Amazon should have a high demand with low competition. Now, you need to identify that product that many people want, but the supply is very low or better yet, nonexistent. Finding such a product is not easy.
Most product niches on Amazon are highly saturated, and it may be hard for a beginner to make sales with such products. You need to know how you can determine competition or demand for a product on Amazon. You can consider the following metrics:
- Monthly revenue is high.
- Main keywords have a high search volume.
- Increased monthly sales
- A low best seller rank
What you need to look out as indicators for low competition:
- The average rating is bad.
- Listing quality is bad.
- Very few reviews
- Very few products that are competing
Consider Profit Margins
The goal of learning how to sell on Amazon is making a profit. This is a key factor that you can consider for your desired product. The profit margin is a very vital metric that you should track for any product that you want to add to your inventory. The majority of sellers on Amazon confirm that they are making profits. This shows you that it is a good business model to consider. You can use Amazon selling tools to help you track your profit margin.
Size of the product
Most sellers start selling on Amazon at a low budget. This means that considering the size of the product that you want to sell is vital. Your cost for acquiring the product and shipping will go up when you go for a great product. If you are selling many units, the increased cost will eat into your profit margin.
It can also be a niche product. However, before you decide to add it to your inventory, additional market research is required.
Beginners to Amazon are advised to sell products with a price range between $15 and $50. The reasons are:
- Selling products below $15 will mean that you will struggle to make money and break even.
- Products with a price range above $50 require a lot of money to purchase the inventory. Customers will also compare prices against your competitors to get the best deal. This will make selling very hard for you.
It is also important to point out that selling high priced products can be a niche for you. However, like with product size, research can help you to determine this.
Now that you know what products you can look out for, we will now look at how to identify those niche products to sell on Amazon.
Use keywords to identify a product: Here, you can make use of the available Amazon seller tools to search for keywords. Some of these tools are more comprehensive than others; it is good to keep in mind before you settle for one. You can look at the online review for more information.
- You can tweak and filter your search results to display volume, revenue, price, reviews, and many other options. The displayed data will help you make a decision when selecting the product.
- Search for the products on Amazon directly: You can use an Amazon seller tool extension when doing this.
You will notice we have referred to Amazon seller tools several times in this article. This is a key tool to have if you are going to have a successful business selling on Amazon. The benefits of investing in a tool include:
- Processing payouts faster: Amazon can create a schedule for making payouts quickly when you have this tool. This can also include the processing of any refunds you are owed.
- They are useful when you want to reprice a product or manage the price.
- These tools are highly effective when conducting market research, searching for keywords, researching a product as well as calculating your profit margin. You now see why they are useful when deciding which product to invest in.
- Managing your inventory and product listing on Amazon can be done through the use of these tools. You can even get an alert when your inventory is running low.
- Making an order for inventory, as well as managing the shipping, is simplified when using these tools.
There are many other benefits of using these tools as you launch a successful business.