The biggest headache for Amazon sellers is how to choose products, because a good product is related to success or failure. If you put your whole heart and soul into making a product and invest all your money into it, but it doesn’t work, you will be heartbroken. Therefore, having a good product is a priority for Amazon sellers, because it is a beginning. Otherwise, even if you invest more in the later stage, it may all be wasted. Here are some issues that you should pay attention to when selecting products and the basic mentality and methods for selecting products.
Before you start selecting products, you should first construct an “ideal product” in your mind. Only by selecting products based on these ideas can you have a clearer goal.
1. Convenient transportation: Products with small size and small mass have advantages in warehousing and logistics, can reduce costs and are more efficient in transportation speed.
2. Fragility: Fragility-resistant products can reduce customer refunds and complaints due to damage during transportation.
3. High average order value: The product price should not be too low. The recommended selling price range is between US$15-75. If the price is too low, it will affect your profits; if the price is too high, it will easily lead to customer loss.
4. Seasonality: Goods that are not affected by seasonal changes can be sold for a long time, while seasonal products can only be sold for a short period of time each year.
5. Legal risks: Products without legal risks, mainly referring to products that cannot infringe copyright
6. Brand awareness: Customers have no requirements for brands and will not choose products based on brand factors. For example, for mobile phones and digital products, customers will consider brand factors more, but for products such as light bulbs and tools, they are not so concerned about brand factors.
7. Market capacity: Existing demand must be large to ensure that there are enough buyers and reduce inventory risk.
Of course, we have also seen many popular products that may not meet all of the above characteristics, such as balance bikes, finger monkeys, etc. But not everyone can come across this opportunity, and the stakes are too high, so it is not suitable for novice and ordinary sellers.
Market prospects and competition analysis, scientific use of tools to assist product selection
After determining the product idea and product keywords, the next step is to analyze the product market prospects and the intensity of competition. The following information should be collected:
1. The historical price level of the product. By understanding the historical price of the product, it can help to judge the future price trend.
2. Product sales: Knowing the approximate monthly sales volume of the entire market can help you estimate the market share you can obtain and understand the overall market demand.
3. The sales ranking of the product. For a certain product, the higher the ranking means better sales, but of course it also means more intense competition.
4. The number of product reviews. For a product with good sales and high price, the fewer the reviews, the less competition there is and the greater the chance! Generally, if a product has more than 500 reviews, it is not recommended to participate in the competition.
5. The number of sellers and inventory status, to understand whether Amazon officially sells the same products, and the number of FBA sellers selling them. To understand the number and strength of competitors, consider whether to compete with them. The simplest statistical method is to directly search the product name in the search box and count how many sellers there are for this product.
Get inspiration for new products quickly
How to get ideas for new products?
1. Best sellers
Through Amazon’s official Best Sellers, you can get product ideas in categories you are familiar with. This is also the method currently used by most sellers. Since Amazon has a scientific product classification, it is easy to find products in the niche that interests you.
2. AliExpress
Although the products on AliExpress are cheap, one advantage of AliExpress is that its data is open, so you can learn which products are hot-selling through AliExpress, and you can also check the buyer's country. If there are more buyers from the United States, it means that American customers also like this product more.
3. Youtube
Pay attention to the daily videos of big Vs in the industry you are interested in or in, and you can dig out a lot of useful product information.
4. Reddit
A window to the Internet, pay attention to what users discuss in different subreddits and find out what users like.
5. Industry website mall
Through other platforms, not just Amazon, many independent sites will do a good job of selecting products, so it is also a hot reference.
I personally recommend starting with the product categories that you are most interested in or familiar with to look for product ideas, and then collecting and organizing them into a list.
