How to Determine What to Sell on Amazon
1. Understand Market Demand To start, you need to understand what products are in high demand. Use tools like Jungle Scout, Helium 10, and Keepa to analyze current market trends. These tools can help you identify products with high search volumes and sales potential.
- Jungle Scout: Offers insights into product trends, sales data, and competition.
- Helium 10: Provides keyword research tools and product tracking.
- Keepa: Tracks historical price and sales rank data.
For example, if you’re considering selling kitchen gadgets, check the sales trends and customer reviews to gauge interest.
2. Analyze Your Competitors Look at other sellers in your chosen niche. Examine their product listings, customer reviews, and pricing strategies. This will help you understand what works and what doesn’t.
- Identify top competitors: See who is leading in the category.
- Evaluate their strengths and weaknesses: What are they doing well? Where are they lacking?
Create a competitive analysis table to compare different aspects:
| Competitor | Product | Price | Reviews | Rating |
|---|---|---|---|---|
| Competitor A | Product X | $20 | 150 | 4.5 |
| Competitor B | Product Y | $18 | 200 | 4.2 |
3. Consider Your Interests and Expertise Selling products that align with your interests or expertise can give you an edge. You’ll be more motivated and knowledgeable about the products you’re selling. For instance, if you are passionate about fitness, consider selling fitness equipment or nutrition supplements.
4. Check Profit Margins Ensure that the products you choose have a good profit margin. Calculate the costs involved in sourcing, shipping, and Amazon fees to determine your profit margin.
- Cost of Goods Sold (COGS): The cost to purchase the product.
- Shipping Fees: Both from the supplier and to the customer.
- Amazon Fees: Include referral fees, fulfillment fees, etc.
Use this formula to calculate profit margin:
Profit Margin=Selling PriceSelling Price−COGS−Amazon Fees−Shipping Fees×1005. Use Amazon’s Tools Leverage Amazon’s own tools to identify potential products:
- Amazon Best Sellers: Lists top-selling products across different categories.
- Amazon Trends: Shows trending products and categories.
6. Validate Your Product Idea Before fully committing, validate your product idea by ordering a small quantity and testing the market. This approach minimizes risk and allows you to gather real customer feedback.
- Create a test listing: Offer your product at a competitive price.
- Gather feedback: Monitor customer reviews and adjust your strategy accordingly.
7. Stay Updated with Trends Market trends can change rapidly. Stay informed by following industry news, attending webinars, and participating in online forums related to e-commerce and Amazon selling.
8. Review Legal and Compliance Issues Ensure that the products you plan to sell comply with Amazon’s policies and any applicable regulations. This includes safety standards, trademark issues, and import regulations.
- Amazon’s Policies: Adhere to Amazon’s listing guidelines and policies.
- Legal Regulations: Comply with local and international trade laws.
9. Optimize Your Listings Once you decide on a product, create compelling and optimized product listings. Use high-quality images, write clear and persuasive product descriptions, and include relevant keywords.
- High-Quality Images: Use professional photos that highlight the product’s features.
- Keyword Optimization: Incorporate relevant keywords to improve search visibility.
10. Monitor and Adjust Continuously monitor your sales performance and adjust your strategy based on data and feedback. Keep an eye on sales trends, customer reviews, and competitor activities to stay ahead of the game.
- Sales Data: Track how well your products are selling.
- Customer Feedback: Use reviews and ratings to improve your offerings.
By following these steps, you can make informed decisions about what to sell on Amazon and increase your chances of success.
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