Amazon FBA (Fulfillment by Amazon) can be an excellent avenue for fresh-faced Amazon sellers. However, it is paramount that you understand where to start. Surprisingly, determining which product category will best serve your profit margin is the first - and most challenging - thing to establish. This article will explain why you should sell on Amazon FBA and which product ideas make for the best Amazon FBA products.
So, What is Amazon FBA?
Source: provenprepcenter.com
The Amazon FBA is an initiative crafted by Amazon. This method allows third-party sellers to fulfil order placements and shipping services automatically. Amazon FBA is unlike Amazon FBM (Fulfillment by Merchant), whereby you’re responsible for the entire fulfillment process.
Amazon FBA: The Business Model That’ll Grow Your Business
As of 2023, 89% of sellers on Amazon utilize the Amazon FBA business model, and it’s easy to see why.
FBA is a great tool for you as you start building your business. It grants you the time to investigate the most profitable products and situate trending products in your product listings. It also gives you the time to acquaint yourself with the reality of meeting high demand.
Eliminating your self-reliance on shipping services and financially supplying packaging materials and warehouse space is an immeasurable time-saver. And, of course, a time-saver is a money-saver.
Picture this: you have the time to develop your budding knowledge by employing tools that'll help you make sense of complex history graphs, sales ranks and seasonal, trending products.
How to Decide Which Products to Sell on Amazon
You now know the benefits of selling items on Amazon FBA. You also are now aware of how vast your competition is. The next step in your trajectory to becoming a distinguished Amazon seller is knowing how to conduct research. Here are a few valuable strategies to help you find the most profitable product(s) to sell on Amazon FBA.
1. Conduct Product Research
Manually researching popular products is a significant first step to finding the top-selling products on Amazon. Utilize the Amazon search bar to situate profitable products to sell from a category that interests you. From here, you should dive into subcategories to maximize the potential of finding a profitable product to sell on Amazon FBA.
Finding popular categories is one thing, but finding product categories that interest you is crucial. Seeing top-selling items that resonate with your brand’s identity will garner customer retention.
As more customers relate to your brand’s message, you will become a credible Amazon seller. You also considerably boost your profit margin when you have a large customer base.
You may also investigate what ‘Customers Also Bought’ to acquaint yourself with your customer’s needs fully. You can now determine if those similar product ideas will be appropriate for your brand.
Once you’ve established a well-researched product listing, check Google keyword planner to determine your product’s search volume. Keyword searches will help familiarise you with which product ideas are in high demand.
2. Make Use of a Handy Chrome Extension to Research Products
An effective Chrome extension will help you make well-informed product decisions. The journey to finding the best Amazon FBA products has never been made easier with the help of the following highly effective tools:
Source: revseller.com
Tools like RevSeller will drastically help you save time. Observing a product's sales rank, category, and profitability saves you time and prevents you from making ill-timed and costly stock purchases. RevSeller strives for the most accurate net proceeds estimates with a real-time calculator.
Source: selleramp.com
Another excellent Chrome extension is SellerAmp. SellerAmp goes above and beyond for any Amazon seller that employs it. Offering fast access to data to help you make the most profitable decisions, SellerAmp provides a current and historical overview of product BSR, Buy Box, sale prices and estimated sales.
3. Investigate the Best Sellers List
The Amazon Best Sellers list ranks the most popular products in the Amazon store based on sales velocity. Browsing item types that coincide with your brand’s identity is an excellent way to see if your product idea has potential. With frequent updates, the Amazon Best Sellers list is worthy of consistent inspection.
Your inspections will help you acquaint yourself with the unpredictability of trending products; you’ll know when and who to sell to. You’ll be able to monitor products in low and high demand equally, maximizing the opportunity to find a profitable product to sell on Amazon FBA.
4. Check the Best Seller Rank
Investigate each product’s BSR (Best Seller Rank). BSR is another option that is excellent for monitoring a product’s demand. Manually research product categories that suit your brand using the Amazon search bar. You will find page one results.
Make detailed notes of every product’s BSR. Some products in multiple product categories will have more than one BSR.
5. Examine Customer Review Insights
These insights convert millions of Amazon product reviews into product development insights.
By examining Customer Review Insights, you’ll get access to what features customers love and don’t love about current products.
The more insights you research, the more refined your product idea will be and the more appealing your product listings will appear to customers whose needs weren’t met.
6. Research Trends on Amazon’s Movers and Shakers List
The Movers and Shakers list from Amazon is updated hourly. It allows the Amazon seller who uses it to view the top-selling items over the last 24 hours.
Seeing the top 100 trending products from your chosen category is critical to finding a standard for your product listing. Similarly to researching Customer Review Insights, you can sift through feedback and star ratings.
However, what Customer Review Insights can’t offer you is the ability to view how much the sales velocity of a product has increased. This will help you determine an appropriate price range to boost your profit margins, giving the customer a good value for money.
7. Find a Gap in the Market
Working with popular product categories can be as promising as it is challenging. Maintaining uniqueness amongst a mammoth competition is extremely difficult when selling the best Amazon FBA products.
Finding a niche within the distribution of top-selling items requires creativity. Even with the help of these research tips, if you don’t have a clear selling point, you risk becoming lost in the crowd.
Now is the time to ask questions. What are your competitors not doing? Are there insights that can tell you what a product is lacking?
For instance, you may wish to sell women’s shoes, for which there are 278 results pages. However, if you were to emphasize specific details - say, you wanted to sell white, vegan pumps - there are only 52 pages worth of results.
The smaller the competition, the more likely you will become a top Amazon FBA seller.
8. Find Inspiration in Success Stories
TILZ Prosperitas Ltd.'s CEO, Tayo Adebisi, started selling FBA products during unemployment.
Adebisi saw a massive increase in sales velocity with her Small and Light products when she utilized the Amazon FBA business model.
Adebisi went from selling products in her living room to selling the best Amazon FBA products from the 8,000 square feet of space she now owns.
This could be you.
9. Find A Reliable Prep Center
Finding a reliable and reputable third-party Amazon FBA prep center is one of the most critical tasks for a new Amazon seller. Finding a credible prep center is vital to scale your online arbitrage/retail arbitrage business.
An Amazon FBA prep center receives and prepares your inventory. It will then ship the stock for you to Amazon’s fulfillment centers.
Look no further than Proven Prep Center. With 10,000 square feet of space at your disposal, the Proven Prep Center prides itself on fast shipping tailored for you.
You will relax knowing that Proven Prep Center handles your products carefully: providing the best packaging supplies, thoroughly inspecting your products for damages and offering a tiered pricing system for your bigger bundles.
It is also worthy of note that Proven Prep Center only sells its private-label products. They will never be competing against you!
Product Criteria That Will Help You Boost Your Profit Margin
Of course, having a well-rounded research strategy is essential. Now, how can you implement your findings? After all, without strict product criteria, how can you start selling the best Amazon FBA products?
Quantity of Reviews
The top-selling items within a popular category will have a multitude of reviews. Vast competition will make it harder to attain brand awareness. Look for niches where the top Amazon sellers don’t have thousands of customer reviews.
Keep Your Products Small and Light
Large and heavy items cost more to ship and are more expensive to store. Look to reduce shipping expenditures and costs of storage space with small and light products. Remember: fewer expenditures mean increased profit margins.
Price Range
Extremely cheap items aren’t the most profitable items to sell. You do not make a lot of money from cheap products. In contrast, an expensive price tag may have customers looking elsewhere.
You need to craft a price range that sits in that profitable middle ground.
Product Categories That Will Help You Grow Your Business
Here are a few popular product categories that are plentiful in the top-selling products on Amazon. This is the fun part! Take your research and criteria and experiment with categories that will help you sell the best Amazon FBA products.
- Bathing Suits: customers usually buy bathing suits before summer. However, customers will likely purchase these products during summer's peak in preparation for next summer!
- Books: ebooks haven’t made paper and ink obsolete. Books are more popular than ever. Books in bulk could be the thing that takes your business to the next level.
- Home & Kitchen: our homes have never been cleaner, and our kitchens have never been so kitted with the latest utensils. Cash in on that!
- Baby Products: babies always grow out of clothes and need fresh products. Remember your small and light criteria; baby products are lightweight and always in high demand.
- Beauty & Healthcare: this is an age where the dream is to have smooth, clear skin and runway-ready makeup looks! With the rise of social media influencers, looking good is something that customers are willing to pay for.
- School Products: whether they require printer ink, highlighters or new file binders, customers will always need products to help them study.
The OA Cheddar Challenge!
Source: oachallenge.com
You are now ready to start using the Amazon FBA business model. Your next challenge: boosting those profit margins!
From OA Cheddar, the experts in profitable Amazon FBA product leads, a new challenge is available to bolster your skills as an Amazon FBA seller.
When it comes to finding the best way to source products, having an expertly selected list provided to you daily via email is a game-changer! This is OA Cheddar’s specialty.
What is the OA Cheddar Challenge?
The OA Cheddar Challenge is a two-week program to help you expand your business as an Amazon seller.
With valuable lessons in the form of video and audio modules, you will have access to a wealth of expert knowledge. Learn how to find profitable products. Learn how to automate your product sourcing. Learn how to master online arbitrage.
At $297 for the promise of lifetime access to the keys to success, it’s a no-brainer!
Enroll here today!