Business Insider found that Amazon FBA sellers are selling their businesses for more than 30 million dollars- people can profit immensely from their Amazon seller profile. But how do you make sure you’re selling the right products at the right time for the right price?
As an Amazon seller, you need to consider what products you include in your inventory carefully. A well-researched inventory leads to steady profits and a sustainable business model. A hap-hazard inventory can reduce and even cancel out any profits your Amazon business makes.
While it’s simple to get started on Amazon, turning your Amazon profile into a top performer is a little more complicated. This article discusses the most strategic products to include in your Amazon seller profile. It also discusses how to search and find the products that fit your market needs the best. Continue reading to learn how to make the most out of your Amazon FBA profile.
Seller Mobile provides Amazon sellers with intuitive software to streamline their inventory process and make sure they turn a profit. Using tools such as Lost Sales Analysis and Restock can position you for long-term success in the Amazon marketplace.
Consumers have something to say to those who believed printed books were a thing of the past: “you were wrong.” Printed books are resurging in the Amazon space, a fitting trend considering Amazon got its start selling books.
The reason printed books are an excellent choice for Amazon sellers is because their profit margins are through the roof- you can find books for a dollar or less and sell them for exponential amounts.
This system isn’t fail-proof, so if you’re going to include books in your inventory, you need to diversify. However, books are an ideal cash cow for your Amazon FBA business.
Clothing, Bags, Accessories
Clothing, bags, and accessories are standard-size products that don’t incur high storage fees at Amazon Fulfillment Centers. Amazon fees are lower in the off-season (January to September).
Regardless of the time of year, clothing, bags, and accessories can fit into average-sized boxes without the risk of damage, increasing their profitability.
Because of this, you can maximize your storage space cost-efficiency. You can package any item together without compromising the product’s integrity.
Baby Clothes and Accessories
Baby clothes and accessories are recession-resistant products that are always in high demand. Amazon simply makes parenting easier. What parent wants to go shopping for baby toys when they can just get them delivered to their front door?
Parents need to buy a lot of baby stuff. They also need to buy baby stuff often. Babies grow quicker than kids. Parents need to outfit their child’s wardrobe every couple of months, translating to more profits in your pocket.
The reason why baby clothes are such a fail-proof investment for your Amazon store is that they’re always in demand, inexpensive, typically lightweight, and durable for the most part.
You have to be careful when trying to incorporate jewelry into your inventory. The market is saturated with vendors. However, if you can utilize the correct long-tail keywords and you can access niche jewelry markets, you can enjoy astronomical margins at 50+%.
You should avoid jewelry if you can only target generic keywords. Unless you can target long-tail keywords, it’s advisable to stay on the safe side and go with something a little easier to move.
Exercise is all over the internet for a reason: people buy it. One of the best aspects of exercise clothing is that people always buy it new, which increases your profit margin.
Electronics have quite a few advantages, including the following:
- A multitude of niches so you can find the product that you think will sell best given your circumstances.
- New devices that come out frequently.
- Different ways to market to different audiences based on brand names.
- Retail arbitrage opportunities.
- Lower commission fees
Another benefit for electronics such as smartphones is their small packaging opportunities. Because of their high demand, fees rarely eat into your profits.
What Makes a Good Item to Sell on Amazon FBA?
There are a few common characteristics to the best-selling products on Amazon. These products typically have low storage costs, move quickly, avoid high margins, and ship easily.
Low Storage Costs
Storage fees can quickly eat into your profit margin. The best items to pick out for your FBA are items that your can store easily, at low costs. Amazon’s storage fees are based on your items’ size.
Note: If there is a difference between Amazon’s and the seller’s information, Amazon uses its system to determine storage fees.
The longer your product stays on Amazon’s shelves, the more storage fees accumulate. If you’re trying to take advantage of Amazon FBA’s benefits, you need to avoid these fees.
The benefit of Amazon FBA is that you can store and ship your inventory at a fraction of the cost of storing at a private storage facility. When you don’t unload the product, your fees can cancel out this benefit.
Price matters for Amazon FBA sellers. Items priced lower than $15 can quickly become unprofitable. There are exceptions to this rule, but you want to be mindful of warehouse fees and delivery fees when sourcing low-cost products.
Conversely, mid-priced products ($50-$120) with compact sizes are an excellent choice to improve your margin: the higher the item’s price, the more straightforward the cost. With higher-priced items, make sure to stay within a competitive price range.
Selling products with high competition is challenging. Standing out in the competition takes strategic planning for long-tail keywords. The most straightforward way to sell products via Amazon FBA is by finding your niche.
Finding your niche for Amazon FBA makes it easier to become a best-seller and simplifies keyword research. Hence, if you try to sell books, you’re going to have a tough time competing for the keyword “books.” But if you target “romance novels,” you can narrow your competition and reach a more substantial portion of the market.
How Do You Find the Best Products to Sell on Amazon?
Deciding which products to sell on Amazon comes down to a few subjects. Performing tasks such as checking the bestseller list, staying away from fringe niches, and analyzing product sales can help you find the best products to include in your inventory.
Check the Amazon Best Seller List
Checking the bestseller list on Amazon is an excellent way to start your research for the products you want to sell. However, you don’t want to stop here. Researching the best sellers gives you a feel for your niches and lets you jot down the items that pique your interest.
You can also eliminate seasonal items throughout the year. However, this is only the tip of the iceberg. From here, you need to get down to the nitty-gritty details.
Become a Private Label Seller
Combining private label selling with Amazon FBA lets you put your spin on items that have proven profitability. With a private label seller title, you can add your own branding to a product that’s already selling well.
Source Items With Low Manufacturing Prices
Target items that have simple, cheap manufacturing processes. Doing so almost invariably increases your profit margins. The more affordable it is to make products, the easier it is to profit from them.
Analyze the Products’ Seller Ranking and Sales
When targeting your next product, you need to keep an eye on two things: sales history and seller ranking. Products’ sales history shows their performance over a given time, allowing vendors to gauge whether the product fits their preferences.
The seller ranking shows you how many units your competitors are selling. This metric helps you gauge how hard you would have to fight for market share.
Conclusion- What To Sell On Amazon FBA
Selling on Amazon FBA is an excellent choice for anyone trying to establish a side business or businesses requiring a cost-efficient product storage solution. However, if you’re looking to decide which products to sell, you need to be cognizant of some misconceptions.
For example, the idea that Amazon FBA does all the work for you- Amazon FBA is not a fix-all solution, and you still need to implement effective business strategies. You also need to dispel the notion that you can sell anything on Amazon and turn a profit. You need to conduct thorough research to determine which products have market potential.
Incorporating business software and tools such as Inventory Analytics and cost and price analytics can help ensure you maintain a steady cash flow and turn a profit on your business.
Seller Mobile helps you manage your Amazon business on a global platform. Our tools let you grow your market reach, optimize sales, and increase your profits using the full-suite software of Amazon tools. Contact us today to see what we can do for your business.