Selling various products on Fulfillment by Amazon (FBA) can be a lucrative business. The good thing about this business model is that Amazon has Fulfilment Centers where you can store your products, and they pack and ship them for you when you get a sale. However, it can be complicated working directly with Amazon, so you may want to find a company to provide prep services for you. You can find out the benefits of working with an entity outside of Amazon by learning more about what are FBA prep services? Keep in mind that not every product will be successful on FBA since there are other limitations on your business. For instance, Amazon sells close to 400 million products. Therefore, picking the right products that suit your niche can be tricky. Read on to learn the top ways to find perfect products for your FBA business.
High Product Value
If you want to succeed in this FBA venture, you must target the best product categories that offer high value to customers. You must choose smaller items that sell fast to avoid inventory buildup. Some of the popular product categories on Amazon that you might consider include the following:
- Apparel and accessories
- Kids’ products and toys
- Home and garden
In other words, you will notice that smaller items are better when choosing product categories on Amazon.
Many people use Amazon to find cheaper products. Most of the products are price-driven, meaning that goods with competitive prices attract more buyers. Additionally, larger prices attract more fees, and this can impact the revenue you can generate. Therefore, it is a good idea to stick to small, lightweight products to maintain your costs at a minimum. You should make sure that the profit for each product is about half its face value. Essentially, it is not the brand that attracts the customers, but favorable prices. If customers are particularly interested in the brand, they can shop at the manufacturer’s website.
Choose the Right Product Research Tool
There are different product research tools that you can utilize to scan the products that can help you locate potential opportunities for various types of goods. There are two options that offer exciting features, like a profitability calculator and review downloader to help you save money, time, and energy when choosing products to sell. The product research tools also consist of continual updates and feature the bestseller ranks for various items, which is perfect in helping you find out the goods that are performing well on the site. Ideally, you should try products that are within the top 5,000 of the best seller ranking.
Utilize Amazon Reviews
Customers first read reviews posted by other people who have purchased the product before buying it. Likewise, you should also access Amazon reviews to find out what people say about a particular product before adding it to your list. You should get an idea of what the customer wants. You must also go through all sections to look for negative customer comments about a product and use the information to make an informed decision. You can only ignore customer reviews at your peril since you would not be the first person to sell the product through your FBA platform.
Avoid Restricted Brands
Other brands, like technology items, might be selling extremely well on the market, but you should never be tempted to sell them through FBA. For instance, there are restricted brands that you cannot sell via your FBA account. Other brands are susceptible to being imitated, and Amazon has zero-tolerance toward counterfeit products. In some cases, electronics companies have deals with Amazon, and it retains the exclusive rights to sell the products. Customers would rather purchase the products from the manufacturer if they are very popular.
Target Impulse Buyers
Selling a product that is over $100 is not a great idea if you want to improve the performance of your FBA business. In most cases, the buyers will view the products that cost more than $100 as an investment. As a result, the potential customers will take time researching the product, your company, and reading reviews to get insight into how the item performs before purchasing it. Therefore, bigger products are less likely to attract buyers. However, smaller items that cost below $100 are ideal for impulse shoppers since they can easily justify the purchase.
Selling products through an FBA business can be extremely profitable since the model is profitable. However, beginners and established traders often encounter the challenge of picking the right products that can generate fair profits. If you are interested in getting perfect products for your business, there are different things that you must consider. You must use the right tools to search for products with high value and that are also in demand. The issue of pricing might also determine the success or failure of your business. More importantly, you must understand the needs of the consumers to be able to generate more revenue from your business.