How to Find Profitable Products to Sale on Amazon FBA
- Conley Stallard
- Jul 24, 2017
- 4 min read
The first thing to do in finding products for sale on Amazon FBA is RESEARCH!
It will take some time, but if you put in the time and effort to research it properly,
you will be rewarded with finding a great product to sale on FBA.
A good place to start looking for a product is Amazon's Best Seller page. Amazon's Best Sellers are made up of the most popular products in sales and is updated hourly. You can see what products are selling well and perhaps give you an idea of the product you want to sale on FBA.
Once you get to Amazon's Best Seller page, go through each category and sub-category until you find some products that interest you. One thing to keep in mind is that you can sale products that you buy and sale for a profit, or sale your own created products.
If you want to sale your own product, the first thing you need to do is to find a supplier which will make your product cheap enough for you to make a profit on your sales. To meet this requirement, China comes to mind. With this option, you are creating your OWN brand and the product that is made is going to be your own product. Of course, you can make your product anywhere you get the best deal.
Tip: Select a product that doesn't compete with Brand Name products.
Once you reach an agreement with a supplier, the supplier can ship it to an Amazon warehouse somewhere in the United States for your FBA sales.
Ideas to consider when choosing a product to sale on FBA:
Keep Your Average Product Sale Price Between $10-$50 - The selling price for your product is something you MUST know before you buy a product for resale. Therefore, if you know that your sale price is going to be between $10-$50, you have to pay an equivalent amount for your product to make a profit. The $10-$50 price range is considered the ideal range for pricing because people make impulse buying decisions for products in this price range.
Look for Lightweight Products (under 3 pounds) - You want your product to be as light as possible due to shipping cost. Otherwise, you have to sell the product at a higher price to cover the extra shipping cost. This reference to product weight includes the item itself, packaging and shipping container.
Similar Products Have Less Than a 5,000 Best Seller Rank (BSR) on Amazon - The best way to determine how well a product is selling on Amazon is to take a look at Amazon's BSR for a similar product. The BSR shows how well a specific product is selling within its category. For example, a product with a BSR of 20,000 would be much more competitive than a product with a 5,000 BSR. This is another tool that you can use as a seller to determine the demand and competition for a specific product to sell on FBA.
Look for Products That can be Bought or Made for 25% or less of Sale Price - This is a quick estimate you can use to determine if the profit margins will be adequate on your potential product. Before you order your product inventory, you should do a more exhaustive calculation on your product's profit margin. If you are going to sale your own product, you can search for your product or a similar product on the Alibaba website (Alibaba Group Holding Limited is a Chinese e-commerce company) to get an estimated cost for suppliers to make your product. Many suppliers show an estimated per unit cost on the Alibaba product page. If the supplier cost is below 25% of the sale price, then the 75% profit margin should cover shipping costs, Amazon FBA and selling fees, which would still leave you a decent profit margin.
Look for 2-3 Products on Google First Page with Less Than 50 Reviews - To go through this process, Google your product name and look for 2-3 similar products on the first page which have less than 50 reviews. The consensus is that items with less than 50 reviews are considered to be less competitive and this gives you a good chance to rank your product on the first page. If you find a product with high demand (First Page listing) and a product with only 5 reviews on the first page, then you have found yourself a good competitive product. The amount of reviews is one of the best ways we have to check on the level of competition for a product. Amazon uses customer product reviews as a major factor in ranking it's products. Don't overlook the idea of using this review process as part of your research before you enter the market for your product.
The option of buying existing products for sale on FBA is also a good way to make money selling on Amazon. Remember this old adage, "Buy Low + Sale High=Profits."
If this post has been helpful to you, leave us a comment below.
Comments