This guest post was written by Gabe Nelson of Synccentric.
Selling on Amazon can be a very lucrative business venture when you play your cards right. Amazon shipped over 5 billion items in 2017 alone, so the opportunities for making money are endless. The biggest key to success is to figure out the most profitable items to sell on Amazon.
When you're getting started, optimizing profit and minimizing risk is a big factor in making sure you're going to actually make money. You may think you have a great product to sell, but without putting in a little effort to double check your ideas, you could end up with a product that just sits on a listing page without ever gaining traction.
Here are some simple tips to figure out which items are going to be the most profitable to sell on Amazon.
1. Consider What's Trending to Find the Most Profitable Items to Sell on Amazon
There's a reason the big guys on Amazon are pushing the products they are. They have marketing teams that spend a lot of time researching what consumers want, and when they want it. They use analytics like trending searches and data about how a product is searched over a period of time to determine what to push and when.
The good news is you can use their strategies and hard work without hiring your own marketing team. Check sites like Google Trends to see what topics are being searched for in real time, or look at their trend maps to see searches over previous months or years.
Look for increases in searches and popularity to determine what consumers are interested in. Remember to focus both on real-time and the way a product trends over time to really get a good idea of what you're working with.
Trends can change quickly depending on seasons, holidays, or highly anticipated new product releases. Keep this in mind and make checking trends a regular part of your routine so you can stay relevant and maximize your sales.
2. Check Out Amazon Reviews to See What Consumers Are Missing
If you aren't sure what to sell yet, reviews can be a powerful weapon in your arsenal. Look at the reviews left by previous buyers and see what their complaints about a product might be. If they're buying a phone case, but they mention that the case overlaps part of their screen and covers their keyboard, you could use that information to your advantage.
Consider hunting down cases that cover less of the screen, or cases that include a stylus to increase ease of use. The phone case is just an example, but you get the idea. See what shoppers are missing out on and fill that niche. Use the reviews left on big players' pages to your advantage by learning what their products leave to be desired.
3. Select a Source with Options That Benefit You
There are a lot of options to choose from when it comes to where you will get your products. Sites that are based overseas can have great deals on bulk rate orders. The low price per item isn’t always bad, but there are some things you should consider when you’re choosing a supplier.
Make sure the item you’re choosing doesn’t have a lot of reviews from past customers discussing things like the disappointing quality or size of the item. Those issues will be passed along to you as the Amazon seller, and then you’ll have to figure out the best way to help your customers overcome the same problems.
There are also bulk sites like Alibaba that will offer you the chance to bulk order under a private label. You’ll need to look at what costs are involved in selling private label on Amazon, but private-label products often get more attention than similar items when customers are making a buying decision.
Most sites meant for bulk orders will offer to send you a sample of their product, but be aware that there will usually be a shipping fee involved, even if the sample itself is free. If you’re narrowing down your product choices, make sure you’re only choosing the top items to get samples of. The shipping fees (especially if you decide to import from China or another country overseas) can add up quickly.
4. Avoid Categories Big Brands Already Dominate
This is a big factor in how successful you can be selling on Amazon. If you have a product that a large brand is already selling in the millions, you're just going to get buried and you will probably never see much, if anything, in the way of profits.
Remember that phrase Mr. Wonderful likes to use on Shark Tank? "They'll just crush you like the cockroach you are." It's not a very nice way of saying you'll get eaten alive, but it's true. If the market is already saturated in a specific category, find a better niche and stick with that instead.
Don't forget the previous tips. Look for gaps in what's already being offered and go there instead. Fighting with the big guys can take a lot of time and resources you may not have. Go where they aren't, and make your own path to success and profitability.
5. Consider Fees and Returns
This may not be about finding an exact product to sell, but it's still important. Remember, there are fees associated with listing on Amazon, and with returns made by customers. If you pick a product that has a high probability of being returned, you'll find out pretty quickly that large volumes of sales won't mean much if you have to take on returned item fees.
Also, consider your Fulfillment By Amazon costs if you use FBA. There are FBA fee calculators out there to help with this part. A quick Google search for "FBA calculators" will help you find some good options. Whatever you end up choosing, just make sure to keep assorted fees and returns in mind when you're choosing profitable Amazon products. It will be a big factor in your overall success.
Starting your Amazon journey can be a little overwhelming, but with simple tips like these in mind, you'll have a head start on others making the same venture. If you're already selling on other sites like eBay and you're adding Amazon into the mix, you could start getting a lot of messages fast.
ChannelReply can help with that. You can streamline your messages and be more efficient, which means more time selling and less time visiting various platforms just replying to messages.
Use your time and these tips wisely and enjoy the profits you'll be raking in. Good luck!