Why Correct Product Selection is Important
Whether you decide to sell on Amazon or build your own eCommerce business, correct product selection is integral in your sales success. In fact, your ability to offer the right product at the right time and for the right customers is what will determine your success or failure.
Why Selling the Right Product is Crucial for an Amazon Seller
Your success lies in careful and correct product selection.
Nearly 80% of products and services offered today are different from those that were offered half a decade ago. Similarly, in five year’s time, majority of products and services will be new and different from those being consumed today. This data tells you that consumers’ taste, lifestyle, wants and needs evolve in such a short period of time. With millions of offerings in the market today, consumers will never run out of things to choose and buy. Likewise, you have millions of options to go through, giving you a more difficult time. Apart from that, you also have to make sure that your products are profitable.
Amazon alone sells 350 million individual products, making the competition in the eCommerce industry fiercer than ever. The good news is that you have a myriad of opportunities to enter the Amazon marketplace and compete effectively with a unique, well-thought offering that could be way better than what the competition is selling.
Take note, only by choosing and selling the right products can you shine out from the crowd and become a successful seller.
Your business processes are connected to each other
All businesses, regardless of whether it is a brick and mortar store or an eCommerce, have many separate processes that all need to work together. Examples are marketing, customer service, inventory and accounting. All processes are interconnected so if something goes wrong in one area, other areas are affected. Each area is also influenced by the type of product you are offering in the market. Meaning, if you are not certain what product you want to sell, your business faces massive obstacles before it even embarks on its journey. If your product line is not well thought of, it will be tough to streamline the other aspects of your online store.
For example, if you are selling alcoholic beverages, you will want to know the additional taxes that you have to pay. When it comes to your online presence, it is important that your product reflects your brand. Let’s say you are selling electronic tools, you probably wouldn’t want to design your Amazon store with brightly colored photos. Have a look at your competitors to find out what type of designs they are using.
Thoroughly researched product yield profits
Assess the product’s profitability by considering its shipping weight and cost, popularity, category and its competition. Look at the retail price too. A retail price ranging between $25-$50 USD makes it possible to cover direct costs, such as Amazon’s fees, cost of goods sold and advertising costs. You will also want to pick a product that sells throughout the year and not just during certain seasons.
Another great way to zero in on products that will sell is by examining customer reviews. Find out what people are talking about and what they are disappointed by. Products with over 500 reviews are highly trustworthy products and likely to have a lot of demand. Selling niche items, such as handmade bags and custom jewellery items, are great too. This way you minimize the competition not only from large sellers but also from Amazon itself.
Figuring out what to sell on your Amazon store is a decision that shouldn’t be taken lightly. We know that being an Amazon seller could give you financial freedom but that might not happen if you have not conducted thorough product and market research beforehand. Think hard about what you really want to sell. The more you think about a product you want to bring into the market, the more informed your decisions will be.
Need help with streamlining your Amazon business processes? Want to track your orders, sales and profits at a glance? Curious what the competition is doing? SellerMobile offers an array of advanced analytics and cutting-edge tools to help you succeed in the Amazon marketplace.