Are you launching a new business on Amazon or looking to transform your existing venture into a profit powerhouse?
Amazon is the world’s largest online marketplace, and millions of buyers benefit from its vast offerings.
Before even thinking about finding products to sell on Amazon ,a seller must evaluate the categories most in demand by the consumers. A 2024 survey revealed that the most profitable category on Amazon was beauty and personal care, with over 30% of sellers tapping into this market. Clothing, shoes and jewelry followed closely, with 27% of vendors worldwide.
But how can you stand out from the crowd and find a product to sell on Amazon? These pressing questions are addressed in this blog. Consider the points below to gain pro tips and transform into a bestseller in the Amazon marketplace.
1. Grow Without Competing with Amazon
Amazon is the pioneer of the e-commerce market. As a monolith, it sells millions of its own products, and it’s wise not to challenge the king in his kingdom. To cut it short, don’t compete directly with Amazon.
This strategy saves you the heartache, as Amazon can always outprice you by grabbing the buy box.
Instead of opting for generic products, focus on niche items that help you sidestep the competition on selling products.
For example, try your luck in dominating a market for fitness programmes specially designed for pregnant women rather than a general fitness program.
2. Finding Goldilocks Keywords: Demand vs. Competition
Another tip to keep in mind while choosing the perfect product is to find the “Goldilocks” keywords that balance the demand and competition. The product you want to sell must be high in demand but face less competition – For this, you need to dig deep to uncover the golden opportunity.
To explore the demand for a particular product, the top two tools that can aid you are:
-
Amazon search bar:
The simplest tool of all is the Amazon search bar itself. Amazon evaluates the search queries to reflect the most demanded products. By typing a simple keyword like “BABY”, you can explore a list of high-demand baby products, giving you a clear insight into popular items.
-
Google Keyword Planner
Another comprehensive tool is Google’s free keyword planner. Use keyword Planner to discover what people prefer online. The tool highlights High-competition products to sell on Amazon, giving you valuable insights. It provides search results on an initial query, offering a broader perspective on the credibility of credible Amazon listings.
3. Avoid Big Brands dominance
It’s not just about competing on Amazon; big players dominate consumer goods and typically maintain a reputation and manufacturing budget that can easily outmatch you in the online arena.
If you are considering the shoe business, Nike and Adidas already hold the market crown. Thinking about toothpaste? Colgate and Crest are game changers.
What should you do now ? How can you carve out space for your business? Don’t worry ! The ideal strategy is to niche down. Search for a niche where big players won’t trample all over you – For instance, instead of going for regular snacks, try selling kale chips. Instead of general pet food, go for organic or grain-free pet food. Just make sure that there is enough demand for your chosen niche.
4. Financial Analysis: Every Penny counts:
Even if you beat the competition and rake in all the sales, it’s pointless if you are not making a profit.
Crunch the numbers to see if it’s worth your while. Count every penny, including manufacturing cost, storage fees, packaging charges and shipping expenses. After tallying all the costs, consider using Amazon FBA to lower your running expenses. If you can’t meet the recurring cost, pivot to the next opportunity without skipping a beat.
5. Amazon Customer Feedback: Key Insights for Sellers
Customers are the lifeblood of every business. Even the most affordable product cannot sustain itself in the market if it doesn’t win the hearts of consumers. Before investing in any item, closely examine the reviews. The best products sell quickly and make repetitive purchases, and result in fewer returns- and these are the customers you should target.
A product with more than a thousand reviews is usually a safe bet, but sometimes an excellent option may have fewer than fifty reviews. It’s crucial to read those limited feedback carefully and analyze whether they are fake or genuine. If they are authentic, take the plunge and go for that product.
6. Impact of Size and Weight on Product Performance
When searching for an ideal product, avoid adding large and heavy items to your list as they will incur higher store and shipping cost.
Consider selling athletic shirts instead; they are lightweight and can be compressed, saving on storage charges and validating stress-free logistics.
Similarly, if you’re considering selling mason jars, keep in mind they come in various shapes and sizes. They are fragile and difficult to handle, increasing the risk of damage during transit and making them more expensive to manage.
7. Selecting Products with High Cross-Selling Potential
When starting a business on Amazon, it’s crucial to plan for the longer term and consider the big picture. Once your first product meets its sales target, what could be your next move? Opt for products that complement each other. For instance, If you begin with body soaps, you can expand your range to include lotions, sanitizers, and shampoos. However, if you choose to sell handcrafted wooden watches, your options for expansions will be more limited.
8. Single vs. Repeat Purchases
Customers typically only need one smartphone or bed set, but products like baby wipes and shaving razors benefit from recurring purchases through monthly subscriptions. While planning to sell products in an online marketplace, make sure your offerings encourage consumer commitment and cater to items frequently demanded by the buyer.
9. Unlocking the Business potential with AI
While AI cannot guarantee a successful journey on Amazon, it can benefit business in various aspects, especially in brainstorming and refining potential ideas.
For instance, if you are considering launching biodegradable glitter makeup, ChatGPT can generate diverse ideas, suggest variations, highlighting potential challenges to sell products on amazon.
BrandNewMD: Your Partner in Successful Amazon Selling and Logistics Management
Are you ready to kickstart your career as a credible amazon seller? BrandNewMD offers a comprehensive sourcing solution, guiding you from potential manufacturing partners to managing the complexities of logistics. Thousands of customers have benefited from our trusted sourcing services, paving the way for selling success on the world’s largest online platform.
