Amazon is the largest online retailer with a huge product turnover, which attracts people from all over the world. Amazon is the 5th most visited site in the US.
As a huge virtual shopping center with thousands of stores offering items of various categories, this platform allows almost anyone to present their product to millions of potential customers. The attractiveness of trading on Amazon also lies in the well-developed infrastructure, thanks to which a number of important elements of trade billing and logistics are handled by the company itself.
Amazon FBA
Fulfillment by Amazon (FBA) is a special service of the American marketplace that frees the seller from solving many of the mandatory tasks of online trading. As an FBA member merchant, you can sell the product and makes a profit, while Amazon takes over the issues of attracting buyers, storing and packaging the goods, processing payments, and other interactions.
Thus, with a relatively small investment and a well-thought-out strategy, almost any seller can start earning quickly. The key to successful trading is choosing a product that will sell well.
How to choose a product to sell on Amazon
This stage is key since the size of your profit depends on it. A trending product is a source of high income and quick sales. The level of competition in the marketplace allows a beginner to breakthrough. Having a “flair” for a product in demand or an emerging trend, you can very quickly start making good money. The ability to analyze the audience, correctly assess the demand, as well as certain strategic points are the key to successful marketing on Amazon FBA.
Choosing the right niche and the product to sell is the most important stage at the start, on which all other business processes depend. The main thing in successful trading is not a beautiful website and a catchy name of the store (which is also important), but what is sold in it. Hence the question arises: how to define a resonating product, i.e. one that will resonate in the soul of the buyer?
One of the tactical approaches to finding “your” product can be everyday life. Think about what annoys you about the things around you that could make your life easier or more comfortable. The idea can also come from communication with other people. All that remains is to look at the Amazon website to see if this offer is in stock.
Here are a few resources to get your idea of what products to sell from:
- Reviews of popular online stores;
- Blogs on social networks;
- Product reviews on YouTube;
- Amazon Best Sellers category;
- Google Shopping reports;
- Rating listings on Aliexpress and Alibaba.
The evidence of the competitiveness of a product is a large list of large sellers with significant sales or a huge number of positive product reviews. The number of views and comments under the video review of a new product allows you to assess the audience’s reaction to this subject, and then select an inexpensive analog from China for it. Blogs in social networks will suggest new trends and fashion trends.
It is worth paying attention to analytical marketing articles dedicated to the top online selling products. By researching reports from Cloudways or Google Shopping, you can find the categories of commodities that are most in-demand by the consumer.
You can use dedicated software tools to find a profitable product on Amazon FBA.
Here are some of the best ones:
- Helium 10 Chrome Extension – universal software for product search, keywords, optimization and maintenance of Amazon listing.
- Viral Launch is an Amazon product selection tool with search, keyword research, market and competitor analysis capabilities.
- AMZ Scout – Specializes in helping sellers discover a promising niche on Amazon.
- Google Trends – allows you to track the trend of changes in demand. If the product has been known for a long time and interest in it is falling, then selling it through Amazon will be unprofitable.
TOP 5 product categories that sell well on Amazon
From time to time, Amazon publishes a list of its top-selling items. Followise offers a list of five categories, whose products invariably go to the first lines of popularity ratings with a buyer.
1. Baby products and toys
Children are some of the most powerful consumers on the market, so this category has vast potential.
The demand for hygiene for babies, diapers, car seats, strollers, pacifiers, teethers, and other baby care accessories are always in trend in sales on Amazon.
The list of Amazon’s 100 Best Toys for 2020 includes: a Candylocks doll with fragrant hair and included accessories, a set for laboratory experiments from Crayola, drawing tablets, construction sets, puzzles, and interactive toys.
2. Beauty and health
This is a great niche for the aspiring internet entrepreneur. This category sells a huge range of products from organic supplements and vitamins to medical gadgets and health books.
An excellent option is also everything related to the beauty industry: cosmetics, all kinds of technological innovations, massagers that can improve the appearance or slow down aging.
3. Home and kitchen
This niche is ideal as it provides ample opportunity for sellers to expand their business. The category provides high demand, offers many simple products and good pricing.
4. Clothes
In this group, sports equipment is always popular. This is due to the popularization of the culture of sports, a beautiful body, and a healthy lifestyle.
Slimming underwear, which is now more and more popular among buyers of all ages, has become a trending novelty. Trade analysts predict that the global market for compression and shapewear will reach $ 5,576 billion by 2022.
Clothes for pregnant women are becoming very popular among Amazon buyers. Maternity clothing category sales growth has consistently increased by 2.01% on average since 2014, according to reports from leading vendors in the market such as Amoralia, Destination Maternity, Envie De Fraises, Isabella Oliver and Mothercare. A key factor behind this is the increase in the number of pregnant women working.
5. Electronic novelties, gadgets, and accessories for smartphones
Headsets, screen protectors, glass for screens, wireless chargers, smartwatches, robotic vacuum cleaners and other useful technological gadgets are selling well.
Innovative applications for smartphones and PCs are also in great demand, such as: tracking physical activity, determining the calorie content of food from a photo, trying on online, choosing a haircut, etc.
Bestsellers among all manufacturers on Amazon in 2020 were the Fire Kids Edition Tablet, the Fire TV Stick streaming media player, and the Echo Spot, Echo Dot, and Echo Buttons line of smart speakers with Alexa voice assistant.
A few tips for choosing a product
In addition to forecasting sales and the level of competition when choosing a profitable product, it is recommended to pay attention to some aspects that can attract or repel a potential buyer.
Factors affecting the demand for goods:
- Low price. It has been found that a $ 15-30 item encourages the buyer to buy impulse. This price gives a high profit with daily sales of more than 20 units. These can be various kitchen accessories or household gadgets that can make housework easier.
- Dimensions. It is known that small-sized goods are in great demand on Amazon. This is due to the ease of storage in the warehouse and low shipping costs. These include personal hygiene items, phone accessories, small electronic gadgets, etc.
- Impact resistance. A simple, less fragile and not subject to breakage is more attractive for sale, since it will most likely reach the buyer whole and in working order. This will avoid returns and conflicts.
- Cost price. Goods with a low cost will not entail significant financial losses when reimbursing cash compensation in case of return. In addition, such products can be used for promotions to attract more customers to the store. This way, a low-cost commodity will work for your promotion on Amazon FBA.
Conclusion: determining a niche and a product that will sell well on Amazon and bring profit is an important stage on which the success of the business directly depends. More details on this topic can be found on the online platform Followise, a business training program at the world’s largest trading floors.