21 Jul What to Sell on Amazon FBA?
What to Sell on Amazon FBA?
“I’ve spent 8 months researching & I can’t find a good product to sell!”Analysis paralysis grips somefor literally years. Can you REALLY be totally sure when choosing your first private label product? Truthfully… no. But with the right guidelines, you’ll avoid the indecision that kills so many dreams of financial freedom.
What Makes a Good Product?
We’ll get to the numbers in a second, but first, there are 3 corecriteria to the perfect product to sell on Amazon.
- Medium sales volume
- Weak to moderate quality competitors
Sales volume can be the difference between market domination, and epic flop. Too little & you won’t sell enough even as top dog. Too much and you can’tafford the first shipment, & competition is likely fierce.
The sweet spot is 3 to 6 sellers on page 1 making good cash, and the rest struggling for the scraps. How much is “good cash?” That’s highly subjective, but a good rule of thumb is at least $10k per month revenue. You can find this estimated sales volume with a chrome extension called Jungle Scout. [AFF LINK]
Is none of this making sense? Check out our “How to Sell on Amazon” post here.
The quality of competitors is something not talked about enough by gurus. If page one for yourproduct is full of differentiated products with AMAZING photography, beautiful infographics, professional writing,& hundreds of reviews, how will you rank on page one? Not to say it can’t be done, but it WILL take a ton of money and skill so unless you have serious coin to throw, steer clear!
If there’s ONE thing that shouldn’t be skipped, it’s differentiation. You can polish up the same old grill brush with $2000 photos but at the end of the day… it’s still the same damn grill brush.
Obviously, it’s best to come up with an entirely unique product from scratch, but that’s usually costly & time intensive. There’s a trick to differentiate without the downside.
- Scan through customer reviews & questions on competitor listings to find the most common complaints about this product.
- Think of possible solutions& ask potential manufacturers if they can modify the product in this way.
- Brainstorm small visual mods to your product to make it unique such as color, shape (if it’s a simple product), size, quantity, etc.
Ideally you want to accomplish both 2 & 3, but sometimes 2 isn’t possible without spending a fortune. So long as you’re differentiated in some way you’ll stand out from the crowd, even if it’s simply bundling two products together or selling as a multi pack.
Key Numbers to Look For
For your first product a healthy profit margin is important so you can afford more inventory & invest in new products quickly. This is where most people freeze up because every guru gives you different numbers. I won’t give you exact numbers… I’ll give you guidelines that work for YOU.
The truth is ideal profit margin, sales per month, &number of reviews is different for everyone based on budget & risk tolerance.
If a product sells 600 units a month & costs$10 per unit to get into Amazon FBA, do you have the $6000 AND another $6000 to buy the next shipment before you’re paid for the first? If you only have $2000, find a product you can get one month of inventory into FBA for $1000 so you can afford to place your second order & avoid going out of stock.
The ideal profit margin is 40% or higher, but many sellers are happy with 30% or even 20%. Just know thatwith lower margins comes higher risk because of less wiggle room to lower the price before losing money on every sale. It also means you need to invest more money to make money. If you have a small budget, steer clear of anything less than a 40% profit margin. If you’ve got big bucks, consider lower margin products as they often have less competition.
The number of reviews& star rating is also important. Social proof will make or break any company & if competitors have hundreds or thousands of positive reviews, you’re starting at a big deficit. One competitor with high reviews is nothing, but if page one is filled with triple or quadruple digits, it’s hard to overcome. High reviews can be overcome with a superior product & product listing, but as a general rule you want a solid chunk of page 1 competition with less than 50 reviews so you can quickly catch up.
Finding Product Ideas
You can find ideas across deal sites or reddit, but that can be SUPER hit or miss & takes a long time.
There’s a great method that turns up product ideas super-fast, reliably, & is easy to do…spying on competitors on Amazon. This is a great way to leverage work that other sellers have done for you.
- Scroll around on Amazon and use Jungle Scout to find products selling well within your number range. Open in a new tab.
- Close any tabs for products that aren’t TOP NOTCH listings with great photos & well written sales copy.
- On remaining products click on the “sold by” link (seller’s name, not brand name) then click on “seller storefront”
- On this page openJunglescout [AFF LINK] chrome extension to see which of this seller’s products are selling well. These are all products for you to research!
- Repeat this cycle over & over, endlessly going down different rabbit holes until you have a big list of products, then dive in & start researching each market.
This is powerful because you have proof that sellers who know what they are doing have ACTUALLY INVESTED money in these products & are doing well. Most products won’t be good to sell, but it’s a better starting point than randomly shooting in the dark on reddit or deal sites.
Now you have the guidelines to go out, kill analysis paralysis, & pull the trigger on your first private label product. Butfinding your first product is just step one. Learn the FULL process to selling on Amazon FBA in our other blog posts below.