If you’re thinking about beginning an online business, one of the finest techniques is to sell on Amazon. It’s simple to learn and extremely profitable, thanks to Amazon’s popularity and Success.
It is undeniable that Amazon is the king of ecommerce, with over twelve million things to choose from. It’s one of the first places a customer will look if they need home decor, pet food, or skincare, which means third-party vendors have an almost limitless number of options.
Why? It all boils down to trust and Amazon’s unblemished image as a global hub for finding high-quality goods at reasonable rates.
The vast array of merchandise available is one reason Amazon has become the top online retailer in the world. The sheer amount of opportunities can be overwhelming for anyone who wants to begin selling.
The secret to becoming a successful third-party vendor and earning revenue from products from other vendors is having a thorough market research strategy.
In short it is important to know the reasons why something sells, and why people are looking for it on the internet. Third-party sales are all about profiting from items that are well-known and popular without risking failure by offering the product in a highly competitive market.
Is Selling on Amazon Worth it?
If you’re still not sure whether you should join the ranks of an Amazon seller and begin expanding your product offerings on Amazon take a look at the facts. For the year 2020 Amazon had a revenue in excess of $80.5 billion, and more than 50% of that revenue comes through third party sellers.
No matter if you’re brand new to retail online or you already have a brand and are seeking profitable products for sale on Amazon which will expand your product range, it is essential that your amazon product hunting is based on data.
Finding Profitable Products to Sell on Amazon
In order to start your research, there are crucial aspects to be considered and the tools you can use for your benefit.
1. Amazon Best Sellers
Amazon provides a wealth of consumer-generated data on a platter for sellers to utilize to inform their choices on what to sell on Amazon.
Take your time looking through the best Sellers section to view the entire list of items with ratings ranging from 1 to 100.
Best Sellers lists are dependent on the amount of sales. So you will be able to see what items customers are purchasing the most , either from the general categories or specific niches or sub-categories.
You can even go more in depth with your research online with Amazon’s Best Sellers Rank (BSR) measure.
Although you cannot use BSR as a precise indicator of the potential sales potential for a product, it’s a good beginning point to develop an estimate of the number of sales you’re likely to generate in a given day, and then decide if it’s an appropriate product to include in your online product line.
Don’t forget to take into consideration what size each of the subcategories is. BSR can provide useful data to work with , but every ranking is only applicable to the category that it is in, and they cannot be used to compare categories.
Find out the percentage that a product is in by using the search bar ‘[]’ to find a particular area within Amazon’s Amazon search bar to determine the number of products in the specific niche.
Finding those products that rank within the top 10 percent of a particular category composed of many items, for instance this is much more useful than trying to compare ranking across categories, every category having their own unique patterns in the marketplace and various variables that are at work.
2. Keyword Research
After you’ve successfully used Amazon’s consumer-based data sets and tools, it’s crucial to follow up by conducting a thorough research on keywords that takes into consideration the search volume for both Google as well as Amazon itself.
There are an array of keyword research tools available that you can look into investing in to discover lucrative products if you are looking to establish a long-term and agile strategy for e-commerce.
- Ahrefs
Another option for doing keywords can be Ahrefs which are used by SEO experts and agencies around the world to locate keywords that are relevant and to look up websites of competitors. For using Ahrefs to perform valuable keyword research for your products, you can modify your searches for evaluating the results of your shopping and, in the ideal world, locate keywords that have little competition but are highly sought-after.
- Amazon
You might be surprised to learn that you can conduct your initial keyword research on Amazon itself. Just type the name of a product in the search bar and get a vast selection of possible keyword variations that customers are likely to use to find the item in order of volume.
3. Product Reviews
Take a hard look at reviews for some more insight if you’ve chosen a product niche or have a selection of products in mind. Consider the number of reviews first. A product with thousands of existing reviews is typically indicative of an over-saturated market, whereas one with none can indicate a lack of demand.
Amazon product reviews can also disclose a wealth of information on market gaps, with many customers going into great depth about a product’s advantages and disadvantages, as well as where it falls short. Make the most of this free information about your target customers’ pain areas, learn from other vendors’ mistakes, and strive to provide a product that goes above and beyond the competition.
Understanding Product Demand
When conducting Amazon market research, there are a number of factors to examine, including market trends, seasonal variations, and profit margins.
Market Trends and Seasonal Change
Google Trends is a fully free resource that can provide important insight into market trends and variations in product demand: simply type in a product’s main search term to see a clear graph illustrating the ebbs and flows in product demand.
You can utilize Google’s data to spot distinct seasonal trends and determine the optimal time of year to start selling a particular product, or you can look for a profitable product that is in demand all year to generate regular monthly recurring revenue (MRR).
Profit Margins
As previously said, BSR is not the be-all and end-all when considering the LTV or possibility of stocking a particular product. Profit margins should be on your mind at all times to ensure that you are shopping for things that will make you money.
Those who are new to ecommerce and third-party selling should always strive for a profit margin of 50% on each product they add to their inventory. This manner, whether you bring in a little or high volume of early sales, you can ensure that you still make a profit.
Always consider an item’s weight, size, and shelf life when calculating profit margins. Large and heavy items might be costly to ship, which can eat into your revenues over time.
This manner, you can anticipate any drops in demand and prevent having a large quantity of product with no one to buy it.
Read More : Amazon Seller FAQs: Answers to All Your Top-of-Mind Questions