How to Find Products to Sell on Amazon
If you’re eager to kickstart your Amazon selling journey but unsure how to find the right products to sell on Amazon, don’t worry - this is a perfectly normal concern for new sellers. After all, the process of finding profitable products in 2023 can be challenging, especially when it means making a hefty investment, but with the right strategies and adequate preparation, there are plenty of lucrative selling opportunities to take advantage of on the platform - even if you’re starting as a beginner!
So, how can you find the right products to sell on Amazon? In the following guide, we're going to take you through the essential steps to find products that will help you succeed on Amazon, no matter your niche. Let’s jump in!
Market Research and Analysis
Before diving into product selection, it's firstly important to conduct thorough market research and analysis. This is going to help you identify niches with high demand and low competition, so here's how to get started:
First, begin by selecting a category or niche that interests you and aligns with your expertise - or even just something you buy and enjoy yourself. It's essential to have genuine interest and knowledge in the products you intend to sell, as this makes it easier to both source quality products, as well as describe and market them correctly.
Your next step is going to be studying your competitors within your chosen niche. Analyse their product listings, pricing strategies, customer reviews, and overall market share. By looking at their negative reviews or 3-star reviews, you can identify gaps or opportunities where you can differentiate your products and ultimately make them better.
Next, you need to begin doing keyword research. Ideally, you should use keyword research tools to identify the most relevant and high-traffic keywords related to your chosen niche; this is because understanding the top keywords shoppers use is going to help you optimise your product listings for better visibility. This is also where you can enlist experts to help with advertising on Amazon, as they’ll have the right SEO tools, experience and knowledge necessary to find trends and keywords to suit your business.
Product Sourcing and Selection
Once you've narrowed down your niche and identified potential product ideas, it's time to consider how you'll source and select your products:
- Sourcing Options: Determine where you will source your products; common options include wholesale suppliers, manufacturers, dropshipping, and private labelling. Each method has its pros and cons, so choose the one that aligns with your business goals and resources.
- Product Quality: If you want to run a successful Amazon business, you need to be ensuring that the products you choose meet high-quality standards. Poor-quality products can lead to negative customer reviews and damage your reputation before you’ve even had a chance to succeed on the platform.
- Profitability Analysis: Finally, you’re going to need to calculate the potential profit margins for your selected products. Consider factors like product cost, Amazon fees, shipping expenses, and your desired profit margin, but always aim to be realistic. If other sellers are pricing their items in the £10-£15 range, it’s going to be difficult to take off as a new seller if your products are substantially more expensive.
Tools and Resources for Product Research
Circling back to SEO and keyword research, there are several tools and resources at your disposal that can help simplify the product research process:
- Amazon's Best Sellers: Explore Amazon's Best Sellers list to identify trending products and categories.
- Third-Party Research Tools: You can use third-party tools like Jungle Scout and Helium 10 for in-depth market analysis, product tracking, and keyword research.
- Amazon's Own Tools: Amazon provides tools like Amazon Seller Central and Amazon Brand Analytics, which offer valuable insights into product performance and customer behaviour.
While it’s good to have your own niche, staying updated with the latest trends in e-commerce can give you a competitive edge. Keep an eye on industry publications, social media trends, and online forums related to your niche, and use Google Trends and social media listening tools to track emerging trends and consumer preferences.
Private Labelling and Branding
To differentiate your products from competitors, consider private labelling as a strategy. Not only does this allow you to get creative, but private also allows you to build a brand identity and customer loyalty, which can drive your success on the platform and even, eventually, on your own domain website.
Supplier and Manufacturer Relationships
One of the most important things to remember as an Amazon seller is that building strong relationships with suppliers and manufacturers is imperative for success. This is especially true if you’re not using FBA and will be shipping all your products yourself, so maintain positive communication and build trust with reliable manufacturers.
Competitive Pricing and Profit Margins
As we touched on briefly above, success on Amazon means striking the right balance between competitive pricing and maintaining a healthy profit margin. Monitor your competitors' pricing and adjust your prices accordingly to remain competitive, while still making a profit.
Ensuring competitive pricing while maintaining profit margins can be a delicate balancing act. Here are some tips to help you strike the right balance:
- Automated Pricing Tools: Consider using automated pricing tools that adjust your prices in real-time based on competitor pricing and other factors; this can help you stay competitive without constantly monitoring the market.
- Bulk Ordering: If possible, order products in larger quantities to negotiate better prices with suppliers, as this can help you reduce your product costs and improve your profit margins in the long run.
The Bottom Line
Ultimately, finding products to sell on Amazon is the first and most important step in your ecommerce journey, so you shouldn’t rush to hop on a popular trend without doing adequate research.
Don’t forget that the Amazon marketplace is highly competitive, and success often comes through continuous learning and adaptation. In short, don't be afraid to test different products and strategies to discover what works best for your business and the ever-evolving Amazon platform.