Do you want to start selling on Amazon but are intimidated by the big players? Over 60% of Amazon sales come from independent sellers–in other words, Amazon generates most of its sales from small and medium-sized eCommerce stores. Knowing...
Do you want to start selling on Amazon but are intimidated by the big players? Over 60% of Amazon sales come from independent sellers–in other words, Amazon generates most of its sales from small and medium-sized eCommerce stores.
Knowing where to start as a new seller can still be difficult. Fortunately, there are many products you can sell, and it’s easier to find wholesale items than it used to be.
But before building up your inventory, you should know which items will sell and which you should skip. Here’s how to identify profitable products for wholesale on Amazon.
Characteristics of Best-Selling Products
While certain factors, such as product trends, influence which items become best-sellers, most top-tier products hold specific characteristics. Here are factors to look for when sourcing the most profitable products to sell on Amazon.
Low price. Customers love a good deal, so it should be obvious that low-priced products are the most popular. You should prioritize products that won’t dig into your bottom line, so keep profit margins and risk in mind. Evergreen. While some seasonal items, such as Christmas decorations, are popular, most sellers have the best success when purchasing evergreen items. For example, sell items consumers will need all year, like cleaning products or items for the home. Aesthetically pleasing. Whether it’s the look of the packaging or the product’s feeling, the item should hold aesthetics that will compel people to buy it. Social proof: Items with social media attention generate more credibility, benefiting you and your customers and making it easier to market them. Scalable. You may want only a small amount of product inventory when you start selling, but you’ll need to stock more as you generate sales. Scalable items are simple and cheap to produce, so you can stock them whenever necessary. Habit-generating. Some of the most profitable items, such as sunscreen, are those that consumers always need. They’ll always repurchase when they run out, making this an easy source of sales. Safe. There are numerous product safety guidelines in various countries, so you should only buy safe items for consumers. This is especially important if you’re selling items for babies and children. Easy to use. Customers will be turned off if your items come with massive manuals. Ensure your customers can easily learn your product; better yet, sell intuitive and self-explanatory products. Performs well: Last but not least, all items you sell should be high-quality and perform as you promise.
How to Find Profitable Products to Sell on Amazon
Product research is essential before building your wholesale inventory. When you conduct product research, you ensure the item is profitable and will perform well in your market. Here are a few techniques to perform product research on Amazon.
Define Product Profitability
Every seller has one main goal: increasing revenue. That’s why it’s obvious that all sellers should look for factors that increase profitability.
There are a few ways to do this. One is by knowing profit margins. Profitable products come with low expenses on your part but have the possibility to profit. You’ll also want to weigh out short-term and long-term profitability.
Short-term profitability is best for measuring the success of a new or seasonal product, such as shoes that are in style. Long-term profitability encompasses the factors that will make your product more pleasing to consumers, and the tactics you apply to increase demand.
Track Price Changes
Many factors can affect long-term profitability, such as price changes. If a product loses demand, it may decrease in value over time, impacting its price. On the other hand, profitable products may increase in price if they are popular.
There are other benefits of tracking price fluctuations. Price changes will help you predict future demand and identify any busy seasons.
Always track price changes before investing in inventory. Track similar items if you can’t find price changes for one specific product.
Research Competitors
All sellers must keep up with the competition to attract the right consumers. Competitor research is also a great way to find new ideas for profitable products and source items for wholesale.
In addition to researching competitors, you can check Amazon’s trending products and bestsellers.
Read Reviews and Q&As
While researching your competitors, review their profitable products and check the reviews and Q&As. This is a simple way to know what your audience demands and if your competitors are fulfilling their needs.
If an item receives positive reviews, this is an effective way to know whether or not the item sells. But don’t forget to look at negative reviews–this will uncover any problems with the items that you can solve with better products.
Don’t forget to read the Q&As. This section will highlight the features and qualities that are most important to your consumers.
Tips for Finding Profitable Products for Amazon Wholesale
In addition to the product research steps above, there are many ways to find top-selling items on Amazon. Here are tips to find profitable products that fit your brand and consumer needs.
Consider Your Niche
You’ll want to narrow your profitable products to those that fit your brand. This way, you’ll satisfy audience demands, and they will know what to expect from your store.
If you’re unsure which products will work for your company, find your niche and identify the most popular products among other sellers in this category. Plus, conducting product research in a niche will help you uncover specialized products that will make your store more competitive.
Calculating Your ROI
We discussed product profitability and profit margins, but it’s essential to highlight one of the most important factors: ROI. Calculating your return on investment will ensure you generate high revenue without spending significant funds.
Knowing which profitable products will generate a good ROI before you sell them can be difficult, but there are a few pointers. First, lightweight items are usually cheaper to manufacture, so they won’t cost much.
You’ll also want to know how quickly you can sell your inventory and any risks involved.
Don’t Forget Logistics and Fulfillment
ROI doesn’t only pertain to the upfront cost of the product. You’ll also want to consider the logistics, such as storage and shipping. The larger the item, the more it will cost to store and ship. There’s also a risk if your items are fragile since some profitable products may sustain damage during shipping.
Since you’ll be selling on Amazon, there’s a chance that you’ll sign up for fulfillment by Amazon (FBA). FBA has special rules when selling heavy and bulky items, so you may want to only sell lightweight items.
Demand
While many qualities will make profitable products more attractive to consumers, it’s best to know if a specific item is in demand.
You can use numerous tools to gauge product demand, and Amazon offers many resources to sellers. For example, sellers can use a tool like Product Opportunity Explorer to identify trending categories and products, and you can even view sales figures and search volumes.
Keyword Research
Keyword research will also help you identify trending profitable products and consumer demands.
Before buying wholesale products, do keyword research to ensure the product and type generate a high search volume. There’s another benefit to researching keywords–you can use metrics, such as keyword difficulty, to identify the competition of the search term.
Cross-Selling and Bundling
An effective way to increase Amazon sales is by bundling and cross-selling profitable products. This strategy combines relatable products so consumers purchase multiple items in one transaction.
For example, if you sell baby products, items you can cross-sell and bundle include diapers, baby powder, and wipes. This increases sales and is a great way to widen your inventory.
Dominate Amazon With Profitable Products
If you’re interested in becoming a wholesaler on Amazon, the first step is sourcing profitable products. This entails knowing the characteristics that make a product profitable and identifying trends that will make you more likely to gain a sale.
The key to uncovering profitable wholesale products is to create an effective product research strategy and know the tips to ensure you’ll make your ROI as a wholesaler.
If you’re a new seller, you may also need more support. This is where we come in. AMZ Advisers can help find sales opportunities to grow your business. Click here to learn more about our services.
Author
Stephanie Jensen
Stephanie Jensen has been writing e-commerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
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