Amazon is the largest online selling marketplace around the globe. FBA (Fulfillment by Amazon) is a step of Amazon to help their users to store their goods in Amazon Warehouses. In addition to this, Amazon offers various other services too.
Now, you may think about what to sell on Amazon. Which products have more selling opportunities? You may also think Amazon is not for you because you do not possess products physically. Well, you are not supposed to have products on hand to do business on Amazon.
In this post, we won’t be trading with retail arbitrage. We don’t look for retail products sold on Amazon at a small premium price.
While people are successful with retail arbitrage on Amazon, there are still many issues of becoming a seller of someone else’s product. These issues include direct competition on the product, lack of supply, and fighting for the buy box.
The disadvantages associated with retail arbitrage are not alike on Amazon. They are the elements that make Amazon FBA a more feasible place in this perspective. A user will have an excellent earning potential through the development of products from scratch.
This article is a try to focus all those issues relating to selling on Amazon. Further, this article will discuss the main steps of doing business on Amazon.
Why Sell on Amazon FBA?
Numerous reasons make Amazon a better place while you are doing business on the internet. These reasons are discussed as follows:
Amazon is the perfect place to buy or sell. Especially if someone is interested in reaching more diverse clientele, then Amazon is the better option than any other e-commerce platform.
By agreeing on the terms and conditions on Amazon, you hand over service support and delivery process to Amazon. Consequently, you can focus more on your business rather than worrying about issues regarding shipment and customer relations.
Millions of Customers:
Amazon helps you to reach millions of customers shopping on Amazon. The statistics show almost 244 million active users are there on Amazon. Hence, if you offer your product on Amazon, there are bright chances that you can find customers.
Further, in addition to a broad audience, Amazon has the best reputation in providing online business forums. Let us compare it with eBay, for instance.
Many users will hesitate to shop on eBay because they feel it cheap and dishonest. The same users love Amazon and shop there frequently.
Therefore, sellers keep an eye on this issue while they are choosing between these two big e-commerce platforms.
No listing Fee:
A user does not need to pay for the listing an item on Amazon. You do not pay anything till you sell something on it. While on other forums, you may have to pay for this facility. Hence, you are in a position to enlist as many items as you want for free.
On the other hand, you should also consider the hefty cut of Amazon on the sales price. It is usually around 20 percent. Amazon will charge this cut if a user is participating in programs like Amazon FBA.
You are in a position to do less work in selling goods on Amazon. Unlike eBay, you are not required to relist items continuously.
Still, you have to control the shipping and other customer services on your own unless you choose FBA service. Amazon offers this facility for the UK and American Sellers only. Amazon does not offer this in Australia yet.
Therefore, you should read the full guidelines on FBA if you want to reduce your workload being a seller on Amazon.
Is Selling On Amazon FBA Worth It?
Whether you should opt for an FBA or not? Whether FBA worth for the user? These answers to these questions based on some variables. We will discuss one by one as follows:
· What you are selling:
It is true some of the fees FBA charge with ratio to size and weights. But the costs of picking and packing handling are fixed. It means that if a user’s goods are small in quantity, not too heavy and higher-priced, it makes FBA a more feasible option.
Moreover, a user should sell those items which are highly demanded on Amazon. He should avoid slow-selling goods.
· How much you are selling:
If you are selling a large quantity, then FBA is an excellent means to store your goods. You need not worry about warehousing your items. Further, you can sell more by using more storage space.
· How much workforce do you have?
If you lack the manpower to handle goods and to cope with several orders, then FBA well worth it for you. Additionally, for often, you may need more employees as compared to regular days due to workloads. Using FBA service, you can counter these unseen problems.
· How much you value Amazon’s reputation:
What if things went wrong? Answering this question can change many decisions regarding online business. Well, FBA sellers have proven themselves very successful.
Because there is a school of thought that argues that customers on Amazon themselves want to buy on Amazon, they do it because of the trust component. It leads to the reputation of the Amazon. It means if things go wrong, Amazon will solve the problems.
Furthermore, FBA sellers are also in a position to sell more because of the attachment of Amazon’s name with their products. It is the main reason behind paying an annual fee to Amazon for the facility of Amazon Prime.
How To Sell On Amazon FBA:
If you are doing business with Amazon for the first time, then don’t worry. We are sure that you will find many things here you are ambiguous about. This section of the article will uncover some basics of how to sell on Amazon FBA.
Amazon FBA literally means what the name suggests. In this program of Amazon FBA, Amazon takes responsibility for all the hard work on your behalf.
Here’s how it works:
Firstly, you send your goods to Amazon, and they store these into their big fulfillment centers. These fulfillment centers are massive warehouses operated by robots and devoted employees of Amazon.
As a second step, your goods are sorted and inventoried with great care. For instance, if something happens terrible to your products in the Amazon fulfillment center, then Amazon will compensate you with the full retail price.
When the customer orders your products, Amazon controls the whole transaction on your behalf. It is an entirely automated process.
After the transaction is done, Amazon picks your goods from their shelves in FBA, pack them into a box. Then Amazon ships these to the customers on your behalf.
It is not the end with the handing over the products to your customers. Amazon continues to follow up and ask the customer if they are satisfied with the products. For instance, if the customer finds a problem, then Amazon takes care of it on its own.
If Amazon does everything, what do I do?
Now you might be thinking of, but you are supposed to do if Amazon is handling everything. Here are some of the works you have to do is an FBA Seller.
Pick the products:Although Amazon is handling the things on the back end, you have to decide from where goods to be picked up and what to sell.
Keep inventory in stock:When your stock is getting low, Amazon will inform you. Then you have to arrange further stock from the suppliers.
Promote and advertise:Amazon is an online market for millions of products. Hence, you are supposed to do a little work to promote your things so that the customer can see these on Amazon. It is a straightforward work. So do not worry.
What Is the Strategy to Find A Great Product?
If you are doing business online, then one of the crucial questions is to answer who to make a strategy to find the right product. You need to find the most trendy, profitable goods that will sell quickly with less work.
Coming up with the products having the above characteristics is not as easy. In a real sense, it is the trickiest process to decide this strategy in online business. You are supposed to perform many market and customer analyses to plan the strategy.
Almost every product you want to sell is already selling practically everywhere. If you are finding the product with the right profit margin, then many people find the same product. So, you are facing a competition even before coming into the business.
Do not worry. Luckily, there is always an opportunity for new goods because they sell most of the time. Anyhow, I have tried to put forward those essential ways to find the right product for your business. These are.
Your product should solve a customer problem.
Your products must appeal to enthusiastic hobbyists.
Your products should also comply with your passion.
Doing business requires professional experience. So, focus on those goods about which you have expert knowledge.
Focus on current market trends.
Consider the customers’ reviews on the previous goods and select these accordingly.
Select those keywords based on search inquiries by the customers.
Start your business on a low level to test it. Afterward, you may increase it.
Invest in those goods offering high-profit margins.
You must consider those products also; customers often purchase together in that specific niche.
Always keep your eyes and mind on to scan the opportunities in the market.
What are the Best Products to Sell on Amazon FBA?
Whenever you are going to a new place of purchase, you will be inclined to ask about those goods benefiting you the most.
Similar is the case when you want to start a business on Amazon FBA. You should start by knowing what the best products to sell on Amazon are. These are essential aspects to consider.
The process of doing business on Amazon starts by picking the best goods to sell, and here are some things to consider.
Priced Between $10 – $50:What is the price bracket falling into which the products sell more?
Generally, the products having a price of less than $10 will not offer you plenty of profit. On the other hand, the goods pricing of more than $50 will need more investment. Further expensive goods sell less. So, investing in those goods ranging from $10 to $50 will be an excellent option to start. Another factor is to consider is the way you sell your products.
Must be 1/3 of its Sales Price:It is evident that if your goods are shown on the front page of the Amazon, then there are more chances that your products will be sold. So, keep in mind this important aspect while doing business on Amazon.
Slashing a good’s price at least by third will increase the likelihood that your product will be on the front page.
Shipping Should Not Be a Hassle:The more substantial the product, the more challenging to ship. Therefore, to avoid the complex arrangements to ship bulky goods, one must consider the lightweight products. It will also decrease the cost of shipment. Eventually, you can earn more profits.
Furthermore, your products should be in as few parts as possible. Also, you should avoid those products which are breakable during transit to make your shipment hassle-free.
Must Come from a Reliable Source:Customer is an asset for your business. So, you should avoid every aspect that causes your customer to disappoint. Indirectly it is attached to your supplier. You should build a supply chain with a reliable source. That is why, before starting a business on Amazon, it is essential to search for a reliable supplier.
Additionally, you should look for the supplier who can manufacture goods for you within short notice. Hence, you may satisfy those customers having emergent needs. After all, any wrongdoing on the part of your supplier will end up with your defamation.
Branding:To make your products legitimate and recognizable, branding your products is very important. Additionally, they can be appropriately labeled. It will instill your product’s confidence in the eye of your buyer.
Sales and Reviews:As a rule of thumb, your items should be capable enough of producing more than 3000 sales in a month, having at least one hundred reviews of top sellers. It is to consider while you are doing business on Amazon FBA. It will also make you understand whether the product is profitable.
What should I not sell on Amazon:
Currently, more than 600 million goods are selling on Amazon. But there is also a restriction on many products that cannot be sold on Amazon. Some goods are banned due to apparent reasons like explosive devices, dangerous animals, and human remains.
But what about antique coins, baby formulas, and surveillance equipment? It gets more complicated when you talk about some categories like makeup or dietary supplements.
There is a complete list of restricted products on Amazon, and therefore, you should not sell these products on Amazon.
Most Profitable Product Categories for Selling on Amazon FBA:
Listing the goods that are more profitable on Amazon is good practice. There are different categories in this regard, which are as follows.
Books:Books are one of the most popular goods on Amazon. You can shape a profitable niche on Amazon in this category.
There is a considerable profit margin on it. If you purchase books in bulk, you can sell them on even 1000% of the original price.
Baby Products:The exciting thing about baby products is that babies need different sizes very soon in stuff. Further, other baby products are used on more frequency. Secondly, baby stuff is inexpensive to buy and gives a huge profit margin. Especially keep in mind that parents spend more on newborn babies.
Exercise Clothing:In clothing, workout wears the hottest item on Amazon. You can get exponential sales if expanding niche into sports times in addition to because most people buy clothing in pairs. Hence, you can enjoy a handsome benefit.
Jewelry and accessories:Jewelry and its accessories can give you a profit margin of 50% and more. Only you need to market these diligently. The jewelry items are one among the female things having exponential demand.
Electronic Items and All Their Accessories:It is obvious that the demand for electronic items is increasing day by day. People love to have their gadgets for the latest technology. What is additional for you is.
Lower Amazon commission (8% versus 15%)
Multiple options in each category.
Technology is changing day by day.
You can work within each purchasing capacity.
How to Find What to Sell on Amazon:
This page is of immense importance if you are looking at what to sell on Amazon. Amazon is dealing with more than 600 million products. Even experienced seller finds it difficult to decide among the products to sell.
Following are ten simple ways how you can decide what to sell on Amazon.
Use AMZ.One to Find Low Difficulty Niches:
You need to opt for a product having low competition. Product Finder tool can help you with that. Use powerful filtering options to search among best selling products on Amazon. Also, Amz.one provides a way to come up with the keywords which are associated with your product and determine the difficulty level in its niche.
This also helps you to make your product searched easily on the internet. Additionally, you can decide what to sell on Amazon.
For finding the best niche market, many aspects are to be considered, and here again AMZ.One can help. These aspects include demand level, competition level, additional monetizing opportunities, and physical product opportunities.
When your product proves itself to be right in these aspects, you are opting for a product having low difficulty in niche categories on Amazon.
Use an Amazon Keyword Search Tool:
Using an www.amz.one Keyword Search Tool is the first step to carry on. It is recommended to use Amazon Keywords Tools to configure these keywords. It will show you the search volume and help you to validate your product name.
See What eBay Products Sell:
It is essential to know what is selling on eBay, to find best selling goods on Amazon.
Use Amazon Reviews to Find Product Market Gaps:
It is essential to know about the needs and requirements of customers by analyzing the reviews by current users. It is the easiest way to find the gap between the products offered and the consumer’s demand. Now fill this gap.
Since many sellers lack the time and budget to min customer reviews, Mining Amazon Customer reviews may prove the best in both ways of time-saving and cost-effective.
If you want to sell your goods on Amazon, search amazon reviews; You should consider the following things.
What items for people are wandering?
Search for unsatisfied customers with a specific product.
Use their complaints to update your products in those perspectives.
Search Alibaba for White Label Products:
If you need to sell white label products, first, you should figure out the types of white-label goods are big sellers. To do this, you can review the top product label ideas to start a $100K+ brands
Once you understood product ideas that are most lucrative for selling on Amazon, you can now search them on Alibaba. It is considered a significant procedure to look for white label goods that sell on Amazon.
Further, you can find the hot items too on this forum. Additionally, on Alibaba, you can find products of every type which are offered by overseas suppliers.
Check Amazon Best Selling Categories:
What are the best ways to come up with good product ideas? Amazon’s best sellers list might be one of these. Since you are going to sell your goods on Amazon, it makes sense to understand what sellers on Amazon are hitting the big. From the smallest to the most substantial items, you can see the top sellers on Amazon.
It will help you to cater to the best-selling categories. Eventually, you can move in the right direction by selecting the ideal inventory to sell on Amazon.
· Research Trending Topics on Google Trends:
You can narrow down to the most selling products by looking at the trending topics on Google. Google trends will tell you which products are mostly demanded in which time frame. Ultimately, it can be beneficial for you to decide the best products accordingly.
It seems not to matter what niche a user is looking for to target his product to sell on Amazon. Looking at Google Trends will give him an idea of the top sellers in various categories.
Hence, Google Trends is one of the most popular research tools that you must use to zone in the most favorable goods to sell on Amazon.
Where To Source Your Products From China To Sell On Amazon:
Based in China, Alibaba is amongst the world’s top online commerce companies. Hundreds of millions of users, in addition to millions of businesses, are hosted by its three main sites. These sites are Tmall, Taobao, and Alibaba.com.
You can source goods from Alibaba for your Amazon, but you have to consider some issues with it. If you have not hired a prep company, then you may face a lousy inventory and quality issues.
· China Wholesale Market:
China has become a vibrant marketplace. China is leading in both wholesale and retail sectors. Thousands of foreign people in business and customers are associated directly or indirectly with China Wholesale Markets.
There are many wholesale markets in China situated in different cities that benefit your business in many ways.
I have tried to cover all aspects related to finding the best products on Amazon. Following these instructions, you can increase the chances of good sales of your goods.
You need to focus customer need to get attractive goods instead of investing in those products; customers do not need. Also, you should know the Amazon’s fees before starting your business on Amazon.
One thing is for sure that business on Amazon is based on pursuing popular products and undercutting the competition in these.
So, if you desire long term e-commerce success, you should sell your products on your site or opt Amazon affiliate marketing. Otherwise, Amazon can drown you out.
Sharline is the founder of LeelineSourcing.com. With 10 years of experience sourcing in China, She loves to share knowledge and ideas in sourcing bussiness.She writes only the truths which others are normally not willing to tell. This makes her posts distinguishable from other import & export articles.
Importing from China is pretty common these days. The country boasts numerous wholesale websites and markets for you to choose from. This allows you to purchase premium quality goods at affordable prices.
Amazon has helped millions of people to start an online business, make money, and realize their business dream. How? They created an Amazon account which enabled them to build a shop on the platform. In the shop, they listed their products and initiated various marketing campaigns aimed at increasing conversions. Do you want to join their group and start to make money? Maybe you are trying to decide if it’s right for you. It’s not for everyone. This article contains all the things you need to know before deciding to become an Amazon seller. It will help you determine if it’s in line with your goals and expectations What are your options to sell on Amazon? What can you sell on Amazon? What should you know about the Amazon business? We will break down these questions, and give you the details before starting your Amazon business. Let’s get started. 1. Amazon Seller Account If you are going to sell on Amazon, you have to create an Amazon seller account. There
Ever since it was first introduced back in 1982 . the e-commerce market has only gotten bigger and bigger. More so in recent years. Statistically speaking, in 2020, 1 out of 4 people shop online, and the number is only expected to grow in the coming years. If you’re wondering, that roughly sums up to about 2.05 billion online shoppers worldwide. Amazon has proven to be a juggernaut, especially when it comes to the whole e-commerce market. It provides buyers everything at their fingertips and a massive audience to the sellers. This is why it shouldn’t come as a surprise that in 2019, Small & Medium Businesses located in the US, on average, sold more than 4000 items per minute. (Amazon, 2019). If we know anything about humans, we are creatures of habit, and most of the time, we tend to follow similar patterns and behavior. Understanding consumer patterns is a crucial part of any business model strategy. If we look at a Google published consumer survey on shopping & vis