In the beginning, I’d like to tell you a few interesting facts about Amazon and the steps to finding Amazon profitable products. Then further on I’ll be getting into the main subject of this article “Amazon Profitable Wholesale Products”.
Furthermore, I wanted to let you know that I am going to try and cover the parts of this process the best way I can. So, I am hoping it will be of great help to everyone!
What is Amazon.com? How does it work? What is Fulfillment by Amazon and How does it work?
Amazon.com, or Amazon as people like to call it, is an American company based in Seattle, Washington specializing in electronic commerce, cloud computing, machine learning and drone delivery. Furthermore, it was founded by Jeff Bezos on July 5, 1994.
It basically sells a lot of things, almost everything. You can find anything from clothing to kitchen accessories, furniture and many other things you might want to buy.
What makes Amazon so special is their effort in details. Besides its grand product range, Amazon makes every possible attempt to customize the buyer experience.
Moreover, another main feature of it, is the multi-leveled e-commerce strategy it uses. Amazon.com allows a wide category of people/companies to sell almost anything using its platform.
The Process of Fulfillment by Amazon (FBA)
Using this process means you would first have to find a supplier that will make your products at a low cost and then create your own brand using the supplier’s products. Once that’s done you just send them to Amazon’s warehouse. The same goes if you have your own products.
In addition, this process also includes printing bar-code labels for products, bagging or packaging items per Amazon requirements, and shipping them to its warehouse.
As soon as Amazon has your shipment in the warehouse you can put your listings on Amazon and start selling. Of course, this comes with extra fees on top of your Amazon seller fees, but it also comes with many other great benefits, such as:
–Shipping is free for Prime buyers;
–Most buyers are looking for Prime;
–You get prime-eligible product listings;
–Higher rankings for product listings;
–More Buy Box listings;
–Trust factor – buyers trust the package will arrive as expected;
–Higher sales potential;
For many small sellers, this is a task done once or twice per month, so it’s more manageable than filling orders daily. Furthermore, Amazon’s inbound shipping costs are quite cheap, so the cost isn’t an issue for them. The important step is finding Amazon profitable wholesale products!
How to Find Profitable Products to Sell on Amazon
The first step, would be finding out what it is that makes a product profitable on Amazon. In order to do so, the best way is to identify a product that meets a standard ship weight, firmness, popularity and competition.
FACTORS THAT ARE REQUIRED FOR A PRODUCT TO BE PROFITABLE
These are the factors you need to keep in mind when choosing a product:
#1. Products sale price between $10-$50
The selling price of the product is the one that actually ensures the profit of your business. For example, many people find this $10-$50 price range an affordable price.
Therefor, they are willing to make decisions based on their impulse because if the product is not as good as advertised, the risk of losing money is not high. Furthermore, you will end up having more purchases then you would have with a product that sold at a higher price. Hence, more money for you!
#2. Lightweight (not more than 2-3 lbs.)
It is preferable to have products that are as light as possible, easy and cheap to ship. Therefor, from what I read online, 2-3 lbs. maximum would be best for someone that is just starting their business, including packing materials and box.
If you want to find an estimated weight of the product you chose, the best way to do so is to find similar products with similar size on Amazon and see their shipping weight.
For example, let’s say you want to sell necklaces and you want to know the shipping weight. What you would do is search for necklaces on Amazon and then find a similar product to yours. Afterwards all you have to do is look for “Product Details” and there you will find the shipping weight.
In addition, lightweight is something crucial if you want to get higher profit margins and success for your product.
#3. Products that are unbreakable and would last during shipping and use
You should be focusing on selling a product that is simple, durable and mainly unbreakable. The best way to find such a product is to look for generic products that are durable made for one purpose only.
In addition, this is also another way of increasing your profit because usually these products are cheaper.
#4. Cost of product’s sale price should be 25% to 35%
Finding the perfect affordable sale price for your product is essential. The reason why it is so important is because if you can get a product made for under 25% – 35% of the sale price then that leaves you 75%-65% profit margin left. So the 75%-65% profit margin should be enough for you to cover the expanses of FBA, shipping and Amazon selling fees and yet still have a profitable income left for you.
#5. Superior quality of the product
The superior quality of the product is something you want to keep in mind as well because it will help with your competition. Therefor, the better quality, durability and efficiency of your product, the more chances you have at winning the competition!
#6. Similar products have a 5,000 Best Seller Rank (BSR) or lower in main category
In order to determine which product is best sold on Amazon you have to look for the Best Seller Rank (BSR).
The BSR allows you to see which product is selling better within its category. For example, a product with a BSR of 15,000 is not going to sell as much as a product in the same category with a BSR of 1,500.
The reason why BSR is essential for your strategy is because it allows you to see whether there is demand for the product in the market or not.
There are of course more ways of determining the demand of a product on the market, and I will be listing some of them later on.
#7. Ability to expand your brand into complimentary products
If you are interested in expanding your brand by creating complimentary products, this is something that you should take into consideration.
Basically, it means that you should be going into a niche that gives you the opportunity to create multiple products that are related to each other. Afterwards, you will be able to sell these products under a single brand.
For example, let’s say we choose yoga mats. This would be a good choice of product, because through it you can sell other products related to it and create a brand for them. Since a yoga mat is categorized under sports & fitness, you could actually sell anything related to that.
Furthermore, if you’re a creative person you could put some work into it and come up with an idea of a unique set of yoga mats. This will definitely increase your profit and give you the opportunity of ranking high in the best seller rank.
#8. Products that can be searched and listed under multiple keywords and product categories
Opting for a product that can be searched and listed under multiple keywords and product categories is an excellent strategy on Amazon.
Not only will it help with your ranking, but it will also bring more chances of higher profit to your door. So, I would suggest keeping this in mind as well.
#9. A few similar products that have less than 50 customer reviews on the first page
The number of reviews is one of the best ways to see the level of competition for a product. Since the reviews for a product is one of the most used ways of Amazon to rank products, you should be looking at the number of reviews very close before entering the market for a product.
Products that have less than 50 reviews are usually easy to beat. That is why you should see at least 3 products with less than 50 reviews on the first page. Furthermore, it means that there is a fair chance you will be able to accomplish getting your product on the first page.
#10. Evergreen products
Evergreen products are items that are not seasonal. The reason this is an important factor when choosing your products is because items that can be sold all year round will give you a higher income and a better chance of improving your ranking.
#11. Top product keywords have over 100,000 monthly searches on amazon
The amount of monthly searches on amazon a product has is how you can make sure your product is demanded on the market.
If your top product keywords have over 100,000 monthly searches then that means you made the right choice and there is more than enough demand for you to be able to sell.
#12. Products that don’t have big brand names within Product Category/Niche or aren’t being sold by great Amazon sellers.
I believe finding a product that doesn’t have a big brand name or dominating seller is crucial because competing with such brands is extremely difficult and most people fail when doing so.
Therefor, choose a product that allows you to grow easily and compete without having any disadvantages.
#13. Products have the ability of providing repeated purchases
Although, this is not a must, it is still something that should be taken into consideration.
Instead of having people buy from you once, you could have the same people buying repeated times from you which is amazing for your profit.
The only down side of this aspect is finding products like that and being able to easily compete with other similar products.
What Is Amazon Product Listing?
The Amazon product page listing is something that gives you important information about the product you are looking at and the spot where you can find more important information is under the product description.
That option is placed under the product’s image, on Amazon’s product pages.
How to Come Up With Ideas of Potential Products That Sell on Amazon
In my opinion, this step is one the toughest. You will have to do a thorough research until you find something that’s worth investing in. It will take some time, but I’m hoping that with the help of this article you will find it easier.
AMAZON BEST SELLERS
This is one of the best ways to go when looking for a product. Why? Because it shows you what products are selling well and whether you have opportunities to enter the market with your product.
Here you have a few options through which you can go about to find a suitable product or simply see if your product matches the market’s needs.
- New Releases
- Movers & Shakers
- Most Wished For
- Gift Ideas
Merchant Words is one of best Amazon seller tools that can streamline your keyword research and much more. This tool is very useful and it is vital because it shows you exactly how many people are searching for your product each month.
Moreover, you can use it to determine whether the selected product is demanded and profitable. So, before you go about ordering your product, you want to make sure it is highly demanded.
In order to access the website, you need to go to www.merchantwords.com.
In addition, you can use it to see if the product has more than 100,000 monthly searches on Amazon.
Example of Choosing a Product That Fits Most of The Criteria I Shared With You Above
As you can see in the picture above, the product I chose is a lightweight yoga mat that can be used anytime no matter the season.
The price of this product was $17.95 and is now on sale at $13.89.
Furthermore, it meets the factor of $10-$50 range. In order to be profitable you have to come up this type of item at a wholesale cost of around $3.49 to $4.90 to meet your cost = 25%-35% of the sales price factor.
The weight of this product is 1.8 pounds and the shipping weight is 2.1 pounds, which is light enough to ship cheaply. Its size is also relatively good, at 24 × 6 × 6 inches. So it fits the lightweight and cheap-to-ship factor as well.
In addition, since it’s a yoga mat, it won’t break while shipping, which fits our simple and easy-to-ship factor too.
Moreover, the yoga mat’s Best Seller Ranking in its largest category, Sports & Outdoors, is #2, which is way under the BSR 5000 that we look for. In the second niche categories it ranks even higher. It’s in the Top 100 in Sports & Outdoors > Sports & Fitness > Exercise & Fitness > Yoga > Mats, being #1.
In addition, it is a product that attracts both men and women. And it has different colors to choose from. Which actually makes it so much more profitable, marketable, and salable, compared to products that are just for men or just for women.
Where to Find Wholesale Products to Sell on Amazon
Getting wholesale products is probably the most effective method of sourcing your inventory. And, with the potential to sell for millions annually, wholesale could be the right option for you.
Here is the best way to find such products:
Alibaba is known as the “Chinese Amazon” due to being one of the biggest online marketplaces in the world. Also, because it has very low prices and many retailers, including Amazon sellers, that source their products from it.
SEARCHING ALIBABA PRODUCTS
Even though the procedure is very similar to Amazon’s or any other site’s, Alibaba has many different products that others don’t.
A positive aspect about searching for product ideas on it is, if you find something, then you know for sure that there is at least one supplier which can make the product.
In order to access Alibaba’s site where you can start searching, all you have to do is go to www.alibaba.com/Products and you will see a page that looks like this:
As you can see here we have a few different categories that we can go through. If you find something that you need, you can just click on a subcategory title that is highlighted in blue.
Afterwards you will see a page that is basically the homepage for all Sports & Entertainment products.
Here we have a few product ideas under “hot products” and “hot categories” through which you can go. If you already know what you want, you can either search the name of the product you want or you can look for it on the page. For example, I want to look for “yoga mat”:
And then look through the results and see what’s best for you!
In conclusion, doing a little research and investing a small amount of money, you can easily achieve a great income. It can be a lot of work at first, but I believe it is worth it.
In addition, I hope you this article helps you and answers your questions. Moreover, if there’s anything else you want to add to this topic, please do! I look forward to getting back to you.