For sellers who are new to the Amazon game, choosing the right product can be a formidable obstacle. Because Amazon is such an expansive platform, it can be difficult to find a product that will have a high long-term success rate.
Fortunately, there are a few tricks to product selection that can help new sellers navigate the complicated Amazon selling market. While there’s no exact science to selling on Amazon, following these guidelines help take some of the stress and confusion out of getting started and help sellers choose the right product at the right time.
Avoid Fad Products
When sellers start out on Amazon, a common tendency is to find a product that has high sales and jump on it. However, these markets often become saturated with sellers trying to get a piece of the action. Think fidget spinners or selfie sticks.
With so many sellers flooding the market, the bottom is likely to drop out, resulting in failure for many companies hoping to make a large profit. Sellers should be wary of selecting trendy products because they will not be likely to retain their profitability down the road.
Know the Competition
Sellers should be aware of their competition. If sellers try to go against a big name brand, they are most likely not going to be competitive. Big brands have the money, reputation, and the experience to back their brand. It is extremely difficult for new sellers to break into a market that is already dominated by large corporations. Instead of trying to wiggle your way into a market full of large brands, sellers should sell a different product with less competition.
If a seller still wants to proceed in spite of major brand competition, careful marketing strategies can help to reach a more specific target market. While it’s unlikely that smaller brands will gain the upper hand in sales, it does not mean that the brand will be totally unsuccessful. If a seller wants to maximize their sales capacity, though, it would be beneficial to consider alternative products or markets.
Be Aware of Fees
Sellers also need to be aware of the various Amazon fees involved with launching a product. Shipping and storage costs are something that can surprise a seller and must be taken into account before launching any new products. As such, sellers also need to know the product materials, weight, fragility, etc., because these factors may have an effect on the shipping and handling costs.
By adjusting the budget to include these fees, sellers can stay on top of their business demands, increasing the longevity of their company in the competitive Amazon market.
Establish a Price Point
Price point awareness is also an important aspect of finding your footing on Amazon. After all is said and done, most companies need to sell their products at a price point of at least $15 to remain profitable. Ideally, the seller would produce or order products for much less. Once fees and other expenses are taken into account, sellers can rarely turn a profit if their selling price point is under $15.
Another aspect of determining a price point is to try and target the impulse buy range. Currently, the impulse buy price range is somewhere between $15 and $60. Most consumers wouldn’t think twice about purchasing a product in this price range. By setting a price in this range, sellers are much more likely to make a sale without having the customer navigate away from their page looking for a better deal. Even if the customer does come back and buy the product later, it is better for a seller’s sales rank to retain the customer’s attention from the start.
At Nozani, we understand the complicated Amazon process better than anyone in the business, and we have the tools to help new sellers determine selling feasibility. Feel free to contact us for more information.