THE BEST PRODUCTS TO SELL ON AMAZON
There are millions of products on Amazon and many good markets for sellers to private label products in. However, some types of products can be better than others.
Consumables - Most people think of a consumable as something a consumer eats, but this is not the only meaning. Products that customers use up and will need to buy again are consumable. Examples, food, health products such as supplements, cosmetics, fragrances, hair care, paper products, certain personal care products and many others.
One time purchase products - These are products that the customer will buy once and may not need to buy again for a long time. Examples, appliances, furniture, computer, etc..
Now vacuums may not be a consumable but vacuum cleaner bags would be. So you can sell consumables that are accessories for non-consumable products.
REPEAT CUSTOMERS IS THE NAME OF THE GAME
As you build your business, you want to get as many repeat buyers as possible. You do this by having a great product and providing great customer service, if you do these things customers will buy from you again when they are in need of the product. The question is, how often will they be in need of your product?
It's best to sell products that customers use up in a certain amount of time. If you sell a supplement where the customer takes one a day and there are 30 servings, you can reasonably expect that the customer will be in need of your product again every 30 days or so. This gives you the opportunity to make another sale from that customer at regular intervals. That is why selling consumables is so lucrative.
I always look for products that are more consumable in nature so I can get more repeat customers.
This doesn’t mean I won’t sell a product that is a non-consumable. You can still make a lot of money on non-consumable products especially if you have great profit margins but I prefer consumable products.
CHOOSING A WINNING PRODUCT TO SELL
If you are going to sell successfully on Amazon or on any other marketplace, you must find a product that people need and are looking to buy. If you choose the wrong product or enter the wrong market, it can be a waste of your time and money.
Many people choose a product based on their own passions, hobbies, or interests. This can be a good thing because it means you will be selling something that you have a passion for which will make you a great spokesperson for that product. However, before you decide to enter a market simply because you have an interest in it, you must make sure that the product is in a market WHERE THERE ARE ACTUALLY PEOPLE BUYING! If you simply choose a market based on your interests and it turns out that the market has no buyers, you will fail.
PASSION NOT NEEDED, YOU NEED BUYERS!
You don't have to be passionate about a product or market to make money. You just need to be in a market that has a lot of buyers. I have made over 1 million dollars selling products on Amazon that I have no interest in. To find the right product to sell, you need to identify a market that is selling well, and then create a product that will be better than your competition in that market.
HOW TO FIND A GOOD PRODUCT TO SELL ON AMAZON
1) BROWSE DEPARTMENTS:
Go to Amazon, click the SHOP BY DEPARTMENT in the upper left corner of the page.
2) CHOOSE A CATEGORY:
Then, choose a category. If you are going to private label products, I suggest sticking with these categories as they are much easier to find private label suppliers:
- Arts, Crafts, & Sewing
- Camera & Accessories
- Cell Phones and Accessories
- Health & Personal Care
- Home Improvement
- Industrial & Scientific
- Kitchen & Dining
- Musical Instruments
- Patio, Lawn & Garden
- Pet Supplies
- Sports & Outdoors
- Toys & Games
- Grocery & Gourmet Foods
- Office Products
3) LOOK AT BEST SELLERS IN THE CATEGORY:
Then, once you choose a department, click the BEST SELLERS link on the department page:
This will bring up a list of the top 100 best selling products in this category. This means that these products are selling very well which lets you know, these markets are hot. It also means these products are likely selling hundreds of units per day depending on the product category.
4) TRY TO FIND A PRODUCT YOU CAN PRIVATE LABEL:
Out of the best sellers you see on Amazon, look for one that you can private label. Once you find a product, you will then need to find a supplier for that product, and then sell it on Amazon. You can even expand your line with more products to make even more money! More about all of this later in this article.
This technique can help you find the very hottest products in each category on Amazon. This lets you know which products are selling extremely well. Any product listed in the top 100 on Amazon is selling well.
If a product is a best seller on Amazon, you still need to be careful. This does not mean it will be a good product to sell. Although these products are selling, the markets may be too competitive. You will need to do some analysis to see how competitive the market is on Amazon.
Here's what you do:
At the time of this writing, after looking in the Health & Beauty Best Seller List we see that this product:
is the number 1 best selling product in the health & beauty category on Amazon. So we can see this product is a "Teeth Whitening Charcoal".
Now do a search on Amazon for"Teeth Whitening Charcoal".
At the time of this writing we will see that this product is in the top 5 of the search results, in fact, it is number 1 in the search:
Now look at the number of reviews this product has. At the time of this writing it has 3,365 reviews. This is a very large number of reviews. But, that's ok.
Now look at the rest of the products on the first page of the search results. If you see that many other products also have 700, 800, 900 or more reviews, this means it may be a very competitive market. It is not a hard fast rule, but important to note.
I am looking for markets where all of the sellers have 500 or less reviews.
NOW LOOK AT THE BSR OF THE TOP 1O
Ideally, I am looking for markets that are selling well, but not too competitive. So I look for products that have a BSR (Best Seller Ranking) of 500 to 5,000 in their top level category, sell between $20 to $70, weigh 3 lbs or less (I prefer 1 lb or under) AND where all of the competitors have less then 500 reviews each. This means the market is doing well, enough to make good money, and is not so competitive that I cannot break into the market. BSR (Best Seller Ranking), is how well a product is selling compared to all other products in a category. It is a good indicator of how well a product is selling. Below is a screenshot showing where to find the BSR of a product:
WHY DO I LOOK FOR A BSR OF 5,000 OR UNDER?
If a product is in the top 100 of its top level category, this means it is most likely selling hundreds of units a day. (depending on the category as some categories are larger than others). In most categories, if a product is at a BSR of 101 to 5,000, it can still be selling anywhere from 20, 30, 60, 80 units per day! This is great money. The problem is Amazon only shows you the top 100 products of each category. Trying to find products that meet these criteria can take days, weeks, or months searching through Amazon. It's really like trying to find a needle in a haystack. I use a service like Jungle Scout to help find the best products to sell on Amazon.
A note on selling price:
I suggest looking for products that you can sell at a price point of $20 to $70. Since you are going to be using Amazon FBA, you will have FBA fees each time a product sells. So you need to make sure you have enough profit after your product cost and Amazon fees.
If you can still make 40% or higher profit margin after Amazon fees you are doing great.
I also like to try and find smaller more light weight products. FBA fees are also determined by weight so try to pick products that are under 1 pound. If you are going to sell a product over 1 pound make sure you leave enough room in your pricing to account for FBA fees.
IMPORTANT NOTE: HOW TO SPEED UP THE PROCESS
I went into detail about how to find a product to sell on Amazon so you would understand the process and how Amazon works. However, doing this manually can take a very long time. I suggest using a service called "JUNGLE SCOUT". This tool can speed up the process and help you to find a product fast.
CONFIRMING A PRODUCT MARKET
Now that you have potentially chosen a market to enter, you will want to confirm the market to make sure it is a in a industry that people are actually searching for.
Let's use the example that you have decided to sell essential oil diffusers.
I used to use the Google Keyword planner for this part of the process. However, Google has recently made changes to their Google keyword planner tool which makes it much harder to understand the data. Now I suggest using a tool called KWFINDER. You can do 3 searches free each day but after 3, you need to wait 24 hours before you can use the tool again. I pay for the full subscription so that I can search as many times as I want. It may be worth your while to do this for one month until you get this part of the process complete. There are free keyword tools available. Just search on Google for "free keyword tools".
In this example I will use the KWFINDER keyword tool. From the KWFINDER search, type in your search term, choose the country you will be analyzing (I choose United States since I am selling on Amazon.com US), then choose the language (I choose English), and then click ANALYZE.
In this example we would type in essential oil diffusers:
This will show you that the term:
essential oil diffuser
has over 73,000 searchs a month on Google. Anything over 2,000 searches a month is not bad and means your product is in demand. Higher than 2,000 searches a month means that you should have a great market to sell in.
You can also look down the list to see complimentary terms people are searching for related to the product and if you see a number of other with good numbers that means you should have a large enough market to do well. Now if we scroll down we see other complimentary terms people use when looking for this product such as aromatherapy diffuser, oil diffuser, aroma diffuser, & diffuser.
and so on... so this is a very large market and most likely would have many customers looking to buy your products. It doesn't mean you want to enter this market unless you have also confirmed that it is not too competitive as shown in the example above.
Once you have analyzed the competition and confirmed that there is a demand for the product, you need to make sure that their is enough profit if you decide to sell the product on Amazon.
USING THE AMAZON FBA REVENUE CALCULATOR
Before you actually go out and source your products, you need to verify that the product is going to be profitable. To do this you will need to use the Amazon FBA Revenue Calculator. Click Here to use the calculator.
Once you're on the revenue calculator page, make sure that you choose the country you're selling in:
What you are going to do is to look at similar products that you are considering sourcing (type and approx same weight) to make sure there is profit in selling them on Amazon. So, now, go to Amazon and search for the type of product you're thinking of selling, in this example we will use "essential oil diffuser":
Then look at the top 10 products and find the ones that are selling the best:
Look at the products that are selling well and that have the highest price, then click on those products and get the ASIN number shown in the url. It's the number after the /dp/ in the url:
Now take this ASIN and enter it into the Amazon FBA Revenue Calculator and click search:
Enter the price the product is selling for in the "ITEM PRICE field and click "CALCULATE":
This is going to show you the total cost to have this fulfilled by Amazon. You can see this where it says, "Selling On Amazon Fees" and "Total Fulfillment Cost":
Then you take the selling price, subtract the "Selling On Amazon Fees" and "Total Fulfillment Cost", this leaves you with your proceeds after fees. In this example we used ASIN: B018CLNEOM and can see that this product is selling for $35.99 minus the "Selling On Amazon Fees" of $5.40 and "Total Fulfillment Cost" of $5.62 leaves us with $24.97. In order for you to be profitable, you need to be able to source a product very similar to this for $12 per unit or under. The goal is to be able to make at least 40% profit after all expenses and fees. A 50% or higher profit would be preferred but never go under 40%. This works for any product, just find those that are selling well on Amazon, find the ASIN, plugin the info into the Amazon Revenue Calculator, and then see the profit potential.
Once you determine you can be profitable for a particular product, you're ready to find a supplier. You need to look for a product either exactly the same or very close to the best selling product you researched on Amazon. We will get more into that in the next section.