THE 4 STEPS YOU NEED TO FIND A PROFITABLE PRODUCT ON AMAZON.
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This guide is a guaranteed formula to success when it comes to finding the perfect product for your Amazon store. Our 4 failproof steps ensure you back and winner each and every time and the profits continue to roll in.
WHAT YOU NEED TO KNOW TO GET STARTED
One of the first things you need to do before embarking on the road to setting up a successful Amazon store is finding a profitable product. Too many, this might seem like an easy step, all you need to do is scope out what’s selling well and jump on the bandwagon, right?
There is so much more to take into account when it comes to choosing a profitable product. We have a guaranteed formula for success. Read on!
SETTING UP YOUR FAILPROOF STRATEGY
Just like you wouldn’t start a new business without a solid strategy in place, you shouldn’t dive into product searching without a plan. You strategy needs to be based around what factors into a top-quality product.
If you want your Amazon store to be a success, then selecting the right product for you is the best place to start – but how do you find this product?
Firstly, have a think about whether there is a particular niche you would like to enter. Whether you have an interest in toys, clothing, electronics, or something completely left field, this can often provide you with the best starting place. While you may find there are no competitive products for your chosen niche, you can simply select your next choice and search products there. If you can combine and interest with a great product, you will be even more passionate about what you are doing.
So the question remains: what factors into a good product?
THE 4 STEPS TO FIND A GUARANTEED PROFITABLE PRODUCT TO SELL ON AMAZON
Go For A Product With Less Than 1,000 Reviews
Reviews on Amazon are extremely important, not only in helping your customers make a purchase decision (which factors in later), but also in getting your products seen by them in the first place.
You want to find a product that has fewer reviews – ideally less than 1,000. The less reviews a product has, the less competition there is in the market, giving you the perfect stepping stone to jump in.
Think about it, if you choose a product that has thousands upon thousands of reviews from a number of different stores, you have a lot more work cut out for yourself getting your product to rank and competing with all those glowing reviews.
How do reviews work? Amazon’s main goal is to sell products – this is how they make their money. This is why they show products that convert best near the top of searches. They want potential buyers to find what they are looking for a commit to buy. Products that are more popular and have glowing reviews are going to sell better. And since lots and lots of good reviews will help convert a customer – these are important to Amazon.
Unlike Google, Amazon has a completely different search algorithm that is carried out in a two-step process. When a customer searches a product, relevant results are pulled and then sorted by their relevancy. While there are plenty of different things that factor into this, the number of product reviews you receive and the quality of these reviews is important.
It is for this reason, you want to find a product that doesn’t have heaps of reviews, as this gives you the chance to enter the market, build up your own reviews and get ranking in searches.
There are programs out there that give you a good oversight of average reviews per product, these include Viral Launch, Jungle Scout and Helium 10, which we will go through in more detail later on.
Look For A Low BSR
The Amazon Best Sellers Rank (BSR) is updated hourly and is based on the number of current and historical sales a product makes. You can find the BSR on the product’s detail page – or by using one of the programs mentioned above. For every subcategory the BSR will be different, which can be seen on the product detail page.
Why is this important information? Because it lets you know how popular the product is and how well it is selling on Amazon. The performance of the product on Amazon is dependent on market demand.
If you find a product with a high BSR, then chances are, it’s not going to be a winner. If people aren’t interested in the product already, then they aren’t going to be interested if you start selling on either, so it would be a waste of your time.
Instead, you should be looking for a product with a low BSR, as this means it is popular. The more in demand a product is, the better chance you have of entering the market and selling your own.
Find A Product Between $19-$100
The next thing to consider is how expensive the product is.
People often fall into one of two traps when looking into this:
1. They opt for a really cheap product to keep their start-up costs low.
2. They opt for a really expensive product to have a bigger profit margin.
Unfortunately, neither of these is ideal. If you go for a cheap product, you are more likely than not wasting your time with a profit margin that is too low to keep you in business. On the other hand, if you go for an expensive product, your upfront costs and risk are much higher.
Ideally, you want to find a product that sells for around $19 to $100. This allows for a decent profit margin without ridiculous upfront costs.
What is a profit margin? While you may be selling the product for $100, you will not be taking away that much profit. There are many things you need to consider when looking at what money you walk away with. This includes:
- Product costs: how much did it cost to buy the product?
- Shipping costs: how much did it cost to have the product shipped to Amazon?
- Amazon costs: you also need to factor Amazon payments into the equation. You have a choice of choosing a basic plan, where you pay $0.99 per item sold, or the professional version, which is $39.99 for unlimited sales. As a business looking to sell lots of units, you would be looking at the latter.
There will be other costs that will arise (such as the tools for research discussed later) that will also need to be factored in, so make sure you keep a list of all your expenses so you can work out your profit margin. This will determine how successful you have been.
Look For A Product Bringing In At Least $7,000 To $15,000 Sales Monthly
It is important to make sure you are set to make a profit from the product you choose.
Looking into its monthly revenue can help you determine this. It doesn’t matter what the competition for a product is like if it is earning less than $7,000 in sales monthly. This type of money just isn’t worth your time.
You want to find a product that is bringing in at least $7,000 to $15,000 each month to ensure you are actually earning a profit on the money you are investing.
Don’t expect to jump in and find a product straight away. Remember, this step of the process is the most crucial one. It doesn’t matter how well you set yourself up on Amazon and how well you market yourself, if you haven’t found a good product that meets this criteria, then you are less likely to succeed.
Here Is A Summary Of What To Look For:
- Less than 1000 reviews
- Low BSR
- $7,000-$15,000 monthly revenue
As mentioned, there are three tools you can use to help you find this information:
Viral Launch is a great tool to help you scale your store on Amazon. It’s easy-to-use software is geared to give you a competitive advantage, offering an array of services, such as Kinetic PPC, product discovery, market intelligence, keyword research, listing builder, product launches, product photography and more.
Jungle Scout was founded in 2015 to help people find top products to sell on Amazon. They have a suite of tools available to you so you can find a product, source and supplier and launch on Amazon successfully.
founded three years ago, Helium 10 was set up to help sellers, like yourself, rise their way to the top of Amazon listings. Their all-in-one software has 20 highly integrated tools to help you carry out product research, keyword research, competitor intel, index checking, listing optimisation, product launches, keyword tracking, refund management, email follow-up, inventory protection, financial analytics, and so much more.
BACK TO STRATEGY
Now you have a clear understanding of how to search for a profitable product you can sell on Amazon, it is time to put a strategy in place for yourself.
Start by choosing one of the tools listed above. Do your research and look into which one best meet your needs and goals on Amazon.
Next, pick a niche you have an interest in. You can even do a bit of a Google search to see which niches are recommended and doing well on Amazon.
Finally, get searching. Mark down all the criteria you need to keep in mind and start looking. This part can be time consuming, but it is worth it.
Once you have a solid product locked in, you can begin working your way through the next steps of setting yourself up on Amazon.