When it comes to making money through Fulfilment by Amazon (Amazon FBA), picking the right product really is half of the battle. This also applies to dropshipping in much the same way.
This is often the most daunting part of the FBA process. I mean, how many more people can sell fidget spinners before the market is too full of sellers? What if I pick a product that is TOO niche and no one even wants it?! What if the product I want to sell already has established competition?
Don’t worry. This guide will act as a support to any decision you make regarding product selection. Before taking action, consider everything written in this post to ensure you pick a product which is practically guaranteed to sell and make you a lot of money.
The low value-add advice – Go Niche
Too often people go into the Amazon FBA side-business thinking they can make a sellers page for a generic item (such as iPhone cases) and assume that they will automatically get a small slice of a large pie. Unfortunately, it just doesn’t work like that.
The chances are the big, mainstream sellers items already have large, established players. Sometimes large companies sell through Amazon. Other times it is Amazon themselves. They could even be Amazon FBA sellers who have been selling that product for 5 years and have such an incredible landing page that it is simply daunting and demotivational to even look at them. How do we (the little men) compete with that! The answer: we don’t.
Instead, we go down a different path. Choose a niche product.
I will be writing a separate post on exactly how to break down a niche product in the coming weeks. However, in essence, a niche product is a subset of a larger market which is specific and focused.
For example: instead of shoes, you could focus on a niche which is designer shoes for women over the age of 50. Get it? The market would be a lot smaller, but there would be less (or no) established players on Amazon.
Amazon may make 2,000,000 sales for people that type in “shoes” into their search bar each month. However, due to the incredible amount of sellers (most of which are big established players), you can only hope to get 0.000001% of that market for yourself once you have made a strong landing page and have over 100 reviews. That would be 2 sales a month. Clearly not great if you’re only making $10 profit per shoe.
Instead, you could position your product as a designer shoe for women over the age of 50. There may only be 2,000 Amazon sales through these search terms each month, but without any big established sellers, you can take 40% of the smaller market, generating 800 sales. Cha-ching!
However, the idea of selling a niche product is very common amongst the Amazon FBA sellers community. This tip alone will be enough for you to generate reasonable sales and have FBA running as a profitable side hustle for you. There is more potential in FBA than it just being a side hustle though!
Read on for advice that you won’t see on any free Amazon FBA advice websites (until they copy this page).
High value-add advice #1 – Research FUTURE trends
Researching current trends is fine for most. You can jump on the bandwagon. Provide a niche product and gain a slice of the pie.
The problem? 1-3 big-time sellers thought about this and took the risk 3-6 months ago and are now own developed sellers pages in that product niche. Their reward? 20-80% of that niche’s sales. Your reward for coming late to the party? 10% tops, unless you can provide a better landing page/ product than them.
Essentially, if those 1-3 early adopters know what they’re doing, they can command a very high percentage of all the sales in that product niche and make a killing.
If you want to be an early adopter, you need to think about future trends. This could be simply noticing a trend which is only starting to build now but deciding that it will grow even larger. Preempting market growth, you find a supplier and begin developing a strong sellers page on Amazon. By the time the market grows to its full capability, you will be a developed seller and will win big!
A trend growing in the world right now, especially the Western world, is being more environmentally friendly, and even vegetarianism/veganism. If you spot an underdeveloped niche in the vegan market and think its going to become big – invest in it now! You could be a developed seller in the market when it finally evolves.
You can use Google Trends (Google it…) to see how many people are searching for a specific word/sentence for a specific country. Use this to your advantage by spotting which markets are seeing sustainable growth year-on-year, or which ones look like they could explode into life at any second. Master this, and you are guaranteed serious profit in the Amazon FBA marketplace.
Many Amazon FBA sellers use a site called Jungle Scout to track sales trends for specific search terms/ products, and can be the difference between you making a serious amount on Amazon FBA, or failing.
Jungle Scout is a paid software that I will review in a separate article. It is fairly low cost however and will cover itself easily if you’re doing Amazon FBA with even half-serious intent.
High-value advice #2 – Find high-sales products with low ratings
The idea here is simple but often overlooked: if a product is making a lot of sales but the reviews are not great (3-4 star), there is clearly some kind of issue with the product being sold. Despite this, it is making a lot of sales…
What do we do? Simple. We look at the reviews, see what people want from the product that they are not getting. Perhaps they want the Tupperware box to be microwavable but it isn’t. Maybe the colour is not appealing. It could even be that there is a minor problem with the design of the product.
Once you have worked out why people are not rating the product 4.5-5 stars, decide whether you can improve upon that error.
You can? Great! Simply sell a competing product with the design improvement, and take a portion of their sellers.
Spotting high-sales products with low ratings is incredibly easy with the Jungle Scout extension. A review will be coming on Jungle Scout in the coming days.
This is an effective product choice strategy because you already know the product will sell well. On top of that, you know the accounts currently selling the product are not doing a great job, so it is likely they are not particularly good at selling and understanding their customers. Or they are lazy. Either way, it is an opportunity to position yourself as a better seller and take a big portion of their already-existing sales!
Of course, the impact would not be instant. You would still need to sample the product and select the supplier, take eye-catching photographs, build a landing page for your product, and generate reviews and run promotions. However, you would be building this on the foundation of an already-existing product which you know is in demand on Amazon!
If you have found a good niche where you can position yourself quickly in the market, the above should only take a week at maximum to set up, allowing for your day job.
High-value advice #3 – Think about add-ons or a USP
Anyone who has sat through a business studies class is probably aware of a USP. Really, Project Fulfilment? A Unique Selling Point (USP)? That’s your high-value advice?!
Yes, it seems basic and obvious. And yet only a small percentage of FBA sellers actually take advantage of this very important strategy.
People search for what they want on Amazon. There will be pages of products which match their criteria in most cases. It is up to the seller to offer something which stands out from the crowd and gets their attention. In the game of internet selling, the seller will usually spend only one second looking at your landing page. Sometimes they will scroll past it without even knowingly reading/ seeing it. What will make you stand out?
One way to stand out and retain the attention of the sellers is to attach an add-on to your product. If you’re doing your research and see numerous sellers selling the type of shoe you’d like to sell. The difference between making sales and not can be as simple as offering an extra pair of shoelaces, or a small packet of shoe shiner.
If all other shoe sellers in that niche are only offering the shoe, your additional offer of an extra pair of shoelaces could honestly be the only thing that helps them differentiate between all the other sellers. It is that important.
So when you are conducting product research, think to yourself: what else can I sell as a package with the product that people would need? Can I source it cheaply and from the same supplier? If so, do it! For the small extra cost of 20 cents per sale for the extra shoelaces, it could result in doubling or tripling your sales each month.
The same method works with USPs. Maybe everyone is selling a special type of Tupperware. You go to find a supplier and see one offering similar Tupperware products but thee are microwavable. Advertise that! Put in your description that yours are microwavable and watch the sellers flock to your landing page at the expense of the sellers who do not effectively advertise all the benefits of their product.
This should be on your mind at all times when looking to pick a new product. Can I source one with additional USPs compared to the current market. If not, can I attach add-ons which increase the value of my purchase without much additional cost? It could be the difference between average profit and a life-changing amount of profit!
Take action! Passive income is a life-changer
Well there you have it!
I hope you’ve enjoyed reading my blog post and have taken away a lot of value which will help you with your Amazon FBA business.
Choosing a product can be prove daunting and challenging. Hopefully the steps above will help you pick a strong product that will sell well and provide the customers with the most helpful product possible.
Looking for gaps in the market, utilising niches, improving on existing high-selling products, thinking about what will be trending in the coming months/years and considering add-ons and unique selling points are all crucial steps to picking products that will make you high sales.
Good luck, and, as always, comment on this post, or talk to me via the contact me page on this website. I always want to help people reach their goals and have a lot of knowledge to give!