eCommerce provides some of the best opportunities for new entrepreneurs to earn an online income. Amazon has the highest profit potential in any marketplace where you can sell products.
It’s no surprise that shoppers prefer Amazon to Walmart, eBay, and other competitors, thanks to its fast and free Prime shipping and seemingly limitless selection. Amazon is also appealing to sellers, thanks to the Fulfillment by Amazon (FBA) program and quick setup process.
While Amazon is an excellent platform for selling your products, this does not imply that you can list any product. To be successful in your business, you must find the best Amazon items to sell. This ensures that there is always a steady demand for your products and that each sale earns a substantial profit.
Checklist for Finding the Best Amazon Products
When looking for a product to sell on Amazon, there are several factors to consider. The following are the most important things to consider as you conduct your research:
1. Product Situation
Not every Amazon product is brand new. The market also sells secondhand and handmade items. These factors have an impact on the product’s viability.
New Products: The majority of the items on the market are brand new. People frequently look for new items, so these products are in high demand.
Anything that doesn’t brand new. They could be homemade, vintage, or items found at garage sales. Used items aren’t as popular as new ones, but because of the lower prices, many customers prefer them. These are the cheapest items to source as a new seller.
2. Product Dimensions
The items you choose to sell should ideally be small and lightweight. These are the best Amazon products to sell. This is due to three factors:
Cheaper to Buy:
Smaller items are generally less expensive for you to purchase. By sourcing low-cost items, you will only need to make a small initial investment in your business.
Cheaper to Ship:
Smaller products that do not weigh a lot are less expensive to ship. This is especially important if you intend to import products from China.
If you intend to use Amazon’s FBA program for order fulfillment, consider the size of your product. Larger, heavier items will incur higher fees, reducing your profit margins.
So, even if you find a large item that meets your criteria, it’s best to avoid it and look for something smaller and lighter to save money. Remember that running a successful business is about as much about the money that goes out as it is about the money that comes in.
3. Product Cost
Profit margin is more important than price. A $20 item with a profit margin of $12 will make you more money than a $50 item with a profit margin of only $5.
Aim for products that cost between $15 and $100. These items should provide you with good profit margins as well as a high sales volume. Anything less will make it difficult to generate an income stream.
What are the best Amazon categories?
When deciding what to sell on Amazon, selecting the appropriate category is critical.
Some product lines sell better than others. Furthermore, some categories, such as clothing, jewelry, groceries, and food, are restricted, which means you’ll have to jump through some hoops to sell in them.
So, which Amazon categories are the best? In general, some profitable Amazon seller categories include:
- Toys & Games
- Home & Kitchen
- Lawn and Garden
- Beauty and Personal Care
- Sports and Outdoors
Of course, profitable products can be found in other categories as well. However, these are good places to begin your search. It is advantageous to select a niche or category in which you are personally interested or are already well-versed.
Women with children, for example, may prefer to concentrate on baby items. Try to find the right niche for you.
Where Should You Get Your Products?
When it comes to product sourcing, you have several options.
With this strategy, you do not keep any inventory. Instead, when you make a sale, you send it to your supplier, who fills the order and ships it to the customer on your behalf. This is ideal for individual sellers with limited capital because you can get started with a small investment.
Dropshipping is an e-commerce retail model that allows businesses to sell products without maintaining physical inventory.
Dropshipping occurs when a retailer sells a product to a customer and then passes on the sales order to a third-party supplier, who then ships the order directly to the customer on the retailer’s behalf.
Dropshipping sellers do not need to invest in product inventory, warehouse, or storage space, and they do not handle fulfillment.
Wholesale suppliers sell items at a lower price than the retail price. They do, however, require you to buy in bulk. The majority of wholesalers have a minimum order requirement.
The price you will receive is affected by the number of items you purchase. As a result, the resale strategy necessitates a substantial investment.
Private label products are one-of-a-kind items that you create and sell under your own brand. This strategy necessitates going directly to the manufacturer.
These businesses, like wholesalers, require you to buy in bulk. However, creating a product that is unique and better than the competition can result in a large number of sales.
This sourcing method involves purchasing low-cost items from a store. You then resell them on Amazon for a higher price. It is the most basic method of sourcing, but it is difficult to scale. It also depends on being able to identify pricing gaps.
The strategy you choose will be heavily influenced by your budget and business plan. Take your time and select the option that will give you the best chance of success.
Where Can You Buy Amazon Seller Items?
When looking for places to source products, there are several options to consider:
Alibaba is an excellent source for both wholesale and private-label products. There are thousands of suppliers offering low-cost items.
The majority of suppliers in this area have minimum order requirements. Many of them are also manufacturers. So, if you want to create your own private label products, they can assist you.
Products can also be found on Aliexpress. This website is similar to Alibaba, but it is aimed at consumers. Prices will be higher, but there will be no minimum order requirements.
Brick and Mortar Stores:
This is the place to look for arbitrage products. Look for items that are on sale or sold in packages. This could result in them being sold cheaper there than on Amazon, allowing you to resell them for a profit on the website.
Other Online Marketplaces:
Similar to retail stores, you may find products to sell on other online marketplaces such as eBay. If you can find something there for a lower price than it is on Amazon, it may have resale value.
Garage sales can be a gold mine if you want to sell used items. People selling items at garage sales frequently do not know how much their items are truly worth. This can lead to some fantastic finds and bargains.
These aren’t the only places to look for items to sell on Amazon. Make sure to do your homework and search the internet. You never know what you might come across.
Recommended Guide: How to advertise your products on Amazon.