Are you eager to make money online by selling products on Amazon, but you have no idea where to start? Let’s have a look at these approaches!
In February 2021, a report showed that Amazon’s net profit rocketed by nearly 85% compared to the previous year, while its sales peaked at $386 billion. These numbers are solid evidence proving that Amazon establishes its reputation as the world’s most used online shopping platform. Therefore, it should be no surprise why more and more people flock to the website as retailers.
If you are one of those aspiring business owners who wish to make a living out of e-commerce, why not check out the following article? Below are all the highly recommended tips on how to figure out profitable items and start your Amazon store right away!
How To Decide What To Sell On Amazon?
1. Determine the characteristics of a potential best-seller
Before browsing through different categories trying to pinpoint what might appeal to customers, spend some time contemplating what makes or breaks a profitable item. Ideally, a product that suits the needs of newly started businesses should have the following features.
- Highly affordable: Most people come to Amazon since it offers a wide variety of price ranges, allowing users with a limited budget an unrestrained shopping experience. But this does not mean that you have to lower the price tag as much as possible. Anything between $30 to $60 is enough to cover additional costs (shipping fee, ads payment, etc.) while still bringing back money.
- Available all year round: There is nothing wrong with highly seasonal products. But for Amazon newbies, restricting your store’s activities to just a few months per year is not the best tactic, as it may decrease your revenue. So it is better to stick with things that can be sold throughout the months, such as bedsheets, mugs, or t-shirts.
- In moderate demand: A common mistake made by Amazon rookies is to immediately sell highly competitive products, such as gift cards, laptops, and smartphones, or video games. While these are frequently sought after, the platform is already filled with brand names having thousands of reviews from past purchases. You simply cannot compete with them. Instead, opt for something that customers want to buy, but there are fewer sellers.
- Lightweight: Shipping fees can eat up a store’s profit margin if you intend on selling heavy, cumbersome products that require extra effort and care during delivery. Furthermore, the smaller an item is, the quicker it takes to move from one place to another. This means you can double down on customer satisfaction by delivering their order within the shortest time.
- Subject to changes: You might want to consider adding more details and making a pre-made product an improved version of itself. If confronted with two similar items, surely shoppers would go for the one that seems to stand out and is superior to the other.
- Easy to advertise: At some points, you would need an Amazon marketing agency to organize your marketing strategies. If your products are too niche or too sensitive, targeting various groups of potential customers can be difficult. You might want to sell something acceptable for most people and adhere to the policies of different ad services.
2. Take advantage of Amazon reviews
Understanding the insights of buyers is crucial to making money on any e-commerce platform. And nowhere do these buyers leave their honest opinions on past purchases other than the review section.
If you spend time reading through the testimonials on each product landing page, especially low-starred reviews, you can easily track down the pain points and know why such products have not satisfied the customers. From there, feel free to decide which you should and should not display on your own listings and how you can optimize each order.
For example, when looking at the feedback of bamboo straws, you realize tons of people complain about their lack of packaging. Now that you have found the market gap, it is time to act on it. Why not introduce a set of bamboo straws neatly placed inside a linen carrying bag? Even better, many manufacturers allow customization with logos and taglines printed on the box for better brand recognition. There you go, problems solved!
3. Have a peek at eBay’s top-selling products
eBay is another household name when it comes to online shopping. Therefore, their listings can be a great source of suggestions in case you do not know which item might end up being lucrative for your Amazon business. Several websites like WatchCount record the most common purchases on the platform in real-time, giving you the raw data to process before reaching a final decision.
4. Research Amazon keywords
A third-party website like Jungle Scout can measure the number of exact match and broad match that appear when a certain keyword is typed in. This way, Amazon retailers can better understand the search volume of whatever they are trying to sell. If it is too high, then probably the product is in great demand with stiff competition. Vice versa, an extremely low search volume indicates only a tiny section of interested customers. You should stay away from both these ends and find something in the middle instead.
5. Study Amazon best selling categories
In the Best Sellers section, there are multiple lines of products that bring back impressive revenue for the owners. While you do not necessarily have to follow their footsteps with the same items, getting to know which inventory is sailing through can help you understand the market better.
Finding out what to sell on Amazon is just the first step in establishing your business. To earn sizable profits, it is imperative that you focus on marketing your products to potential customers. For Amazon newbies with no previous digital marketing experience, this is when a reputable agency like Olifant Digital steps in. Check it out for yourself now!