Do you need to select a product to be profitable?
Once you have decided to sell products on Amazon, you can sell whatever products you like. But to be profitable, you should follow some strategies to find out what to sell on Amazon. This includes the keyword research, competition analysis, looking for bestselling products, finding out what do the customers want, and your favorite niche, etc. By doing these kinds of researches, you can narrow down the availability of products to a small list from which you can choose. This is because Amazon is a Giant marketplace with millions of products. This article will discuss some of the strategies to find out what to sell on Amazon.
Table of Contents
- Looking for what people want
- Researching Amazon’s bestsellers
- Based on the production cost
- Competition analysis
- Performing Keyword Research
Looking for what people want
The ultimate end of the product cycle is the hands of the end customer. So, if you need to find out what to sell, you should get to know what people actually want. This can be identified from customer reviews of already existing products. You can find customer reviews for Amazon’s products. You will get to know exactly what the expected features of a product are and the niches that are in high demand. Going with a product with no demand will not be profitable. You can also find what people are buying through the suggestions that appear below the listed products on Amazon. You should select a product that has demand throughout the year. You should avoid seasonal products.
Researching Amazon’s bestsellers
One of the best ways to find products to sell is to look out the best sellers on Amazon itself. Amazon maintains its list of bestsellers in almost all categories. You can simply go through the list and find a specific category of your interest. Although the main bestselling categories will have high competition, the products in sub-categories will have relatively low competition with the same demand. You can find different niches in the sub-categories as you go deeper. Those products will be unique and less in supply. Selecting that kind of product will help improve your sales and profit.
The product you are going to select should be high in demand and low in competition. Although this combination is rare to find, researching for this kind of products is vital for beginners. A beginner cannot go face to face with a giant competitor with a huge brand name and size. The competitor’s ability and reach can also be found through the reviews they get for their products. If a seller gets thousands of reviews for his product, then you should better stay out of that product.
Based on the production cost
The main objective of a business is to generate profit. So, you need to consider all the costs incurred from manufacturing the product to shipping it before setting a final price. If your final price is only a little higher than the cost, the profit margin will be very less. So, your cost should be 30 to 40% of your final price to see a considerable profit. However, just increasing the final price to have a profit margin will decrease sales because of the unaffordable price. Hence, the product you choose should be made at a low cost so that even after deducting all the costs incurred, a profit margin is left although the final price is affordable for the customers. The average selling price should be $15 to $50 for your product. It should be like a win-win situation for both the seller and the customer. Less weight and evergreen products will fall under this category of low-cost products that improve profitability. Your product’s size should be small enough to make it easily portable and reduce the shipping charges. The losses due to damage during shipping should also be reduced. So, you need to choose your product that fits all these requirements.
Your product page should be viewed by many customers in order to increase sales. To drive traffic to your page, keywords are important. Keywords are the common words used by customers to search for the products they need. You can use some keyword research tools to find out the keywords with low competition and a decent search volume. If you go for high competitive keywords, your competitors will win the search results. So, try to choose low competition keywords and select products according to that.
Before selecting a product to sell online, you should focus on factors like the keyword competition, customer expectations, reviews, profit margin, and competition in the niche to get an idea of the possibilities of profit generation. It is safe to go with low competition high demand products as a beginner.