Choosing the right product to sell on Amazon is not always easy. You must consider so many things, and you can easily make a mistake if you do not know what you are doing. One of the most common mistakes people make when choosing an up-and-coming product to sell on Amazon is thinking they have found a niche.
A niche is a small market with low competition and good margins. An up-and-coming product is doing well right now but still has room for growth in the future. It is important to understand the difference between these two concepts if you want your Amazon business to be successful. In this article, we share some tips for choosing an up-and-coming product to sell on Amazon that has the potential for success. Let’s get started!
Is it Profitable to Sell on Amazon?
It can be quite profitable to sell your products on Amazon, as the online retail giant has grown exponentially in recent years. An estimated 95% of all sellers want to expand their e-commerce ventures over the next several years. Clearly, those who are looking to establish themselves as Amazon sellers have huge opportunities.
The following facts may convince you that Amazon is the right place to sell your product:
- Three-quarters of sellers(76%) are profitable in 2022, despite serious disruptions due to supply chain issues and the continued COVID-19 pandemic.
- Amazon sellers have ambitious growth plans for 2022. Over half of them (58%) actively sell on other e-commerce platforms, and many more have plans to expand this year.
- Entrepreneurs are exploring new ways to make money through Amazon. One in four (25%) new Amazon sellers plans to sell their business to an aggregator.
45% of Amazon sellers said their profits increased from 2020 to 2021, even as some consumers returned to shopping in physical retail stores.
Selling on Amazon certainly has many advantages, but it is important to remember the risks that are also involved. Be sure to carefully research the competition and market conditions before deciding whether this platform is right for your business. If you decide to sell on Amazon, make sure that you have a solid plan in place for managing inventory and fulfillment, and be prepared to invest the time and resources necessary to succeed. With careful planning and a solid business strategy, it is possible to make a significant amount of money on Amazon.
What Is Amazon Product Research?
Amazon product research is the process of analyzing products sold on the retail giant’s website and identifying business opportunities. It requires careful consideration of many factors, including market size, competitors, price range, and ease of selling. You should focus on not only current results, but also future trends to stay ahead of the competition.
To conduct Amazon product research effectively, it is important to understand that not all products are created equally and some markets have more opportunities than others. Being well informed about the market can help you make better decisions when selecting a product to sell.
One of the reasons for choosing an up-and-coming product is the opportunity to gain an early market share. If you go with a product that has been selling well, it will be difficult to build your business because most buyers will choose products from established sellers. Therefore, if you are looking for a new and profitable business venture, it is important to thoroughly research the market and find a niche that has not been fully explored.
When conducting Amazon product research, you also need to consider other factors, such as your target market and competitors, to help you focus on one or two products that will be a good fit for your business. In addition, it is important to optimize your product for searches by including the right keywords and properly conducting keyword research.
Conducting effective product research is critical for building a successful business on Amazon. By analyzing market trends and understanding your target audience, you can identify the right opportunities that will help you achieve results. With careful planning and commitment, you can build a successful business and earn a good income through your Amazon store.
Why Is It Important to Conduct Product Research?
To successfully launch and promote a new product, it is important to conduct thorough product research. This will help identify consumer needs and determine the viability of your proposed new product in the market. Product research can also reveal growth opportunities and ways to improve existing products. To conduct effective research, you should consider the following factors:
Understanding your target customers and their needs and preferences will help you determine the best way to position and promote your product in the market.
It is important to conduct a detailed analysis of your competitors and assess their strengths, weaknesses, opportunities, and threats. This will help you identify any potential gaps in the market that you can exploit to gain an edge over your competitors.
Identifying the most effective marketing channels for reaching your target customers is key to successful product promotion. You should consider using online marketing strategies, such as social media, paid advertising, and search engine optimization.
Conducting thorough product research is essential for launching and promoting a new product. By taking the time to understand your target customers, analyze your competition, and identify effective marketing channels, you can ensure that your new product has a strong chance of market success.
Key Elements of an Amazing Product Opportunity
When you are considering starting a business, it is important to carefully evaluate all the available opportunities. You should look at many factors when determining whether a product or service is worth your investment. To be a successful Amazon seller, remember the following key aspects:
Learn which kinds of products and services are popular in your area and what people are looking for online. Identifying a need or gap in the marketplace is a great place to start when developing your own product line.
- Be willing to experiment and take risks.
Even if you have a good idea, some elements of it will likely need to change or evolve over time. To make the most of your opportunity and ensure your success, it is important to think outside the box and try new things.
- Pay attention to trends, and stay abreast of what is happening in your industry.
Understanding your environment and what is happening in the business world will help you make more informed decisions about where to focus your efforts. This may involve attending conferences, reading publications, and talking with other experienced entrepreneurs.
This list identifies the Amazon product criteria that you must have and those that are great to have.
Amazon Product Research Checklist
Here is a quick checklist to help you identify the right product. Using these criteria makes your job easier.
- Create a detailed search matrix to avoid skipping categories when researching a product.
- Establish a red entry threshold of $40 (selling price).
- Initially, it is important to use Amazon’s help to determine the three to five most relevant and high-frequency keywords that result in the most sales. Thereafter, you should start research more deeply.
- Find the best keywords for your product that will bring you sales.
- Use Amazon’s Product Opportunity Explorer tool. This tool provides information about what buyers are looking for to Amazon sellers and gives them access to data and trends to help them identify new products for their sites.
- Pay attention to monopoly and domination.
- Understand that the way to the customer’s heart is through the customer journey.
- Use the product to get to the bottom of the truth of life. The consumer must scream, “So, this is about me and for me!”
- Realize that in most cases, advertising conversion equals organic conversion, more or less.
- Be sure to include a certificate that indicates the laboratory and manufacturer in your product description. If the manufacturer of the product does not have a certificate, find a seller who has one and request the certificate.
- Understand that ROI should not be less than 100% and net profit should not be less than $15. Account for the speed of the goods turnover cycle (3–4 times per batch per year) in your analysis.
- Understand that conducting an extensive analysis is 80% of success.
- Remember the words of Nir Eyal, who said, “The California Roll Rule says that people don’t want something truly new; they want something familiar done differently.”
Top Tips for Finding Products to Sell on Amazon
Every Amazon seller knows that finding the right product to sell is vital to success on the platform. With limitless options and a dynamic marketplace, it can be tough to know where to start your product research. Here are our top tips for finding products to sell on Amazon:
Find a niche market
When you are looking for products to sell on Amazon, it is important to find a niche market. This will help you focus your search and make it easier to find the right products. When choosing a niche market, consider the following questions:
- What are the needs of the market?
- What are the trends in the market?
- What is the competition like in the market?
Conduct keyword research
Keyword research is a great way to find products to sell on Amazon. By using the right keywords, you can target your audience and make it easier for them to find your products. As you conduct keyword research, consider the following questions:
- What are the most popular keywords?
- What are the most frequently searched keywords?
- What are the most competitive keywords?
Research your product
Once you have chosen a niche market, it is time to start researching your product. You can research products on Amazon using a manual or automated process.
Manually researching products on Amazon can be a time-consuming process. However, it is the best way to get an in-depth look at products that are selling well in your niche market. When researching a product, consider the average price of the product, the number of reviews for the product, and the average rating for the product.
Automated research tools can make the process of researching products on Amazon much easier. Some of the most popular research tools include Viral Launch, Jungle Scout, and Sellics.
Find a supplier
Once you have chosen the product that you want to sell on Amazon, it is time to find a supplier. You can find suppliers in several different ways, such as using Alibaba and Google Search, attending trade shows, and visiting manufacturers’ websites.
Alibaba is the largest online marketplace for finding suppliers. It is a good place to start your search because you can find a wide variety of suppliers in one place.
Using Google Search is another way you can find suppliers for your products. Simply enter the product that you are looking for into Google and add the word “supplier” after it. This will provide a list of potential suppliers that you can contact.
Attending trade shows is another great way to find suppliers for your products. Trade shows allow you to meet potential suppliers in person and see the products they have to offer.
The manufacturer’s website is also a good place to look for suppliers. Many manufacturers have a list of authorized distributors that you can contact.
Negotiate with suppliers
Once you have found a few potential suppliers, it is time to start negotiating with them. When negotiating with suppliers, consider the price of the product, the minimum order requirement, the lead time, and the payment terms.
Place your order
After negotiating with suppliers, it is time to place your order. When placing your order, remember to:
- Make sure that you understand the terms of the agreement.
- Read reviews of the supplier before placing your order.
- Place a small order initially to test the quality of the product.
Set up your Amazon listing
Once you receive your products, it is time to set up your Amazon listing. When setting up your listing, be sure to:
- Use keyword-rich titles and descriptions.
- Optimize your product images.
- Choose the right category and subcategory.
- Set the right price.
Set up your Amazon listing
Promote your products
After you set up your Amazon listing, you need to promote your products. You can promote your products on Amazon in different ways by using pay-per-click ads, Amazon Vine, and Amazon associates.
Monitor your sales
Once you start promoting your products, it is important to monitor your sales. You can do this by checking the “Best Sellers” ranking for your product, as well as the number of reviews and the average rating for your product.
Optimize your listings
Once you start selling your products on Amazon, it is important to optimize your listings. Take the following steps to optimize your listings:
- Use keyword-rich titles and descriptions.
- Optimize your product images.
- Use negative keywords.
- Split test your listings.
These are just a few tips to help you sell your product on Amazon. If you follow these tips, you should find a profitable product to sell in no time.
Products to Avoid Selling on Amazon
Products that fall into certain categories cannot be sold on Amazon. You should avoid choosing complex products, such as cameras, photos, paintings, and home appliances, for the following reasons:
- Cameras and other electronics cannot be sold on Amazon because they are considered high-risk items.
- Home appliances cannot be sold on Amazon because they are bulky and difficult to ship.
- Paintings and other works of art cannot be sold on Amazon because they are valuable and can easily be damaged during shipping.
To prevent problems with your account, it is best to avoid selling these types of products on Amazon. If you must sell one of these items, be sure to choose a reliable shipping method and insure the item for its full value. Any damage that occurs during shipping will be your responsibility.
Are You Closer to Determining What You Should Sell on Amazon?
Amazon is a great place to start and build a business. If you have been trying to determine what you should sell on Amazon, you are not alone. It can be a tough decision, especially if you are starting from scratch.
Here is a quick test to help you determine whether your idea is likely to be successful:
- Is there a large enough market for your product?
- Is your product easy to find and purchase?
- Can you price your product competitively?
- Is your product easy to ship?
- Can you provide great customer service for your product?
If you answer “yes” to all these questions, you have likely found a good thing! If not, then it may be time to rethink your strategy. Do not worry if you cannot immediately find the perfect product. It takes time and experimentation to find success on Amazon. If you are still unsure what to sell on Amazon or if you want some help getting started, contact Dinarys. We can help you with everything, from product research to listing optimization. We hope that this article is helpful. If you have any further questions, please do not hesitate to reach out to us!