Amazon teems with a plethora of products. Customers worldwide like some, or loathe some. It is this market demand that propels the sales of a product or sinks it down. Thus, if you are a seller on Amazon, it is necessary to think about which product you should pick and showcase for sellers. The success and popularity of the item would make or break your business. If you choose the right product, you have already won half of the battle among thousands of competitors. All you need to do now is to optimise, market and sell.
Here is a comprehensive guide to assist you in choosing the most profitable products that would ensure success. Stay tuned to dive deep into the details.
What are the top-selling categories on Amazon?
Toys and Games
With new movies for kids, comes an entire array of must-have toys that kids would love to have in their collection. Research well if you are choosing this niche, because children decide the popularity of toys. The water games and board games related to science, technology, art, engineering and maths are quite popular in the Amazon market.
To check the popularity, go to the bestselling products page on Amazon, that lists the products based on the sales volume. It is updated hourly to give you a clear picture about the demand of the types of toys.
Grab the opportunity to sell toys when the Holiday Toy List comes out, or for birthdays or any special occasions. Be the Santa Clause for the toys and games, and you are successful.
With increasing dominance of technology around you everywhere, Electronics is a promising market in the Amazon. A change in the mindset, adaption to evolving technology and Internet of Things is noticeable in the demand for electronic goods. The cable TV has become a thing of the past, and hence Fire TV saw a major boost in sales.
However, this niche is full of established brands and that raises the bar of competition quite high. It is better for you to focus on a particular micro niche in Electronics to attract potential customers, than dealing in a range of products.
Camera and Photos
This section deals in cameras, their accessories and those related to photography. Those items aimed at security are increasing in popularity as the need to protect your home rises.
Focus on products with specific use. For example, a doorbell that is attached to the door, and has features to promote security by letting you see who is at the front door with motion sensors, is one of the top-ranking products in this category. Consider selling products that would encourage them to come back for more. This increases the base of loyal customers you can bank your success upon. Lastly, market your brand and bring it before people.
It forms the most profitable category in Amazon. The platform is even hiring developers for boosting the Games Section. Video game streaming is becoming a big part of Amazon’s business. Play Station and Nintendo are the most trending items in this category.
Analyse the market trend in a comprehensive way. Twitch Features are exclusively available to Amazon Prime members as Twitch Prime. Members can download and stream content on Twitch. If you are selling video games on Amazon, promote their availability on Twitch.
Yes, man’s best friend can form a potential niche that contributes to success on Amazon. No matter how much digitalisation comes into play with e-books on Kindle gaining popularity, bookworms and bibliophiles constitute a lion’s share of the population. They crave for the smell and touch of books made of paper and ink and contribute to the success of book sellers on Amazon.
It is a huge section divided into several genres and categories of fiction, children’s books, science, novels, and so on. The most popular among all include Samin Nosrat, Guinness World Records, and Jeff Kinney. Self-help book, children’s books, fiction and the adventure novels with good reviews are the most sold items in this category.
There are 37 sub categories, ranging from exam preparations to those based on hobbies. Choose the best sub-category that would attract the audience. Promote your products and keep a check on the interest of your audience.
Books are a profitable niche. You can buy a large number of books for aa small amount and you will never face a dearth of buyers. If you want to make easy money with a huge profit margin, go for this category.
Clothing, Jewellery and Shoes
The Clothing and Fashion niche is a huge success when it comes to selling on Amazon. The top-notch brands that are more expensive are less popular as compared to less expensive but stylish item. Amazon footwear and active wear form a lucrative market. With casual tops sharing the lion’s portion of the market segment on Amazon, casual bottoms, shoes, accessories, dress, athletic garments and underwear too have their bit.
To be successful I this category, offer a range of colours and sizes of the same product type, widening the options for customers. Take the advantage of FBA to allow quick delivery and return processes. This reduces the chances of not buying a dress online because they cannot go for a trial. The fast FBA return policy aids in increasing the sales.
Choose what to sell on Amazon FBA
You may be on tenterhooks deciding about which product to finally choose to sell on Amazon. the demand in the market, the niche popularity among customers and the Best Seller Rank of the products will decide how profitable you might be in selling on Amazon. You need to choose the right product first for this. Here is a comprehensive list of to-do actions and checklists you need to cover to get hold of the best product-
- Consider referral fees, closing fees and shipping charges. The lightweight items will considerably reduce the shipping charge and promise higher returns to you.
- Choose products that can withstand a long delivery, picking and packing.
- You may consider ordering products from China, where the production and labour cost is low.
- Choose the products within a price range of $10 to $100. This increases the number of customers who buy impulsively, thus boosting your sales velocity.
- Don’t choose products that have a lot of competitors or established brands.
- Check the seasonality and popularity of products over time. Choose items that sell all round the year.
10 Steps to guide you in choosing the right product
Check market demand
Analyse the market trends. Research the various products when you are a beginner in selling products on Amazon. select the product category or niche that is highly popular. Conduct deep research into which sub-category the customers are interested in. Narrow down the list and check the historical market trends, sales volume, sales velocity and predicted revenue to choose the best product for selling.
Hit a jackpot. No more is it based on intuition or guesswork, but you can now make data driven decisions. Product research is solely aimed at finding the most profitable niche and the most promising product. Invest in it to get high returns. Predict which product will be rising to heights in terms of market demand.
Analyse historical data, follow sales fluctuations and the trends of popularity over time. Amazon product research tools will assist you in finding the best products, early in its lifetime.
A powerful tool of the IO Scout is the Product Finder that boosts product research among more than 200 million odd products scattered all over the virtual market. Search among the wide range of products by applying various filters like-
- Product. Price
This gives a comprehensive research on the competition, worth, and estimated demand of your product. Use IO Scout to find high margin products with low competition, using the revenue and sellers’ filters.
If you are not ready to dive in to new brand niches, you can always explore what you are good at. Use the Include Keywords tab to find out more products that you are more experienced with. You may also venture into new niches by filtering a search through reviews, ratings, sellers, etc.
Avoid categories with more competition
There are thousands of sellers on Amazon and more then 4 million products available. This will give you an idea of the competition that a product can face. It is intense, and to rise in the sphere, you will have to choose a product that is high in demand but has less competition.
Don’t select a niche that is oversaturated with products and items. Oversaturation increases the competition exponentially. This also signifies high demand. Those sellers who are already established in this area might gain huge profits, but as a newbie it may be hard to gain the ground.
Enter the keyword in the search box and get the idea of similar items. As this number reduces, there is less competition and high chances of becoming the best seller in the time to come.
Read the reviews of different products to get the idea of social backing of the item. If you find any negative review, you can think of choosing the product that will compensate for the negative reviews. Thus, it will rise to high popularity among all customers.
Avoid competition with big brands
Find a free niche so that you can rise to success. If you are entering a sphere teeming with big brands, although it reflects on the popularity of the products, it is difficult to compete with business tycoons and the big fish. Rather choose a fewer shining niche and propel it towards success to be the best seller.
Don’t get lost amidst big stars in the market. Create and build your own identity in Amazon marketplace.
Find items that have a few reviews
To appear on the first page of the search query, your product will need to have at least 50 reviews. It is not easy to get this if you are new to selling products on Amazon. Choose an item that has a few reviews. Market well, and increase the number of reviews. Get featured among the top sellers and get your product to the top list. Dominate that niche by entering into a product that was not very popular. Use your strategies to propel its popularity.
Think of your needs
Needs and necessity are the mother of invention. Gain more insights about the pain points of the customers. Focus on what you want as a customer. That will give you a breakthrough about the product that is most in need by the customer base.
Any item that addresses the pain points of customers will be the best seller on Amazon. These items will also be very high in the market demand. The more familiar you are about the product idea and the needs, the more passionate you will be in selling it. And the passion would fuel the business success.
Choose a less expensive product
Choose items whose price varies from $10 to $50. This will lure the customers who buy on impulse. They do not bother much to look at the reviews and rating of the products. They will window shop and get any item in the bucket list that is appealing and is within a price range.
This Goldilocks price range gives a sweet spot to customers. The more expensive a product is, the more customers will think before buying and will research about it. Thus, it is advised to kickstart your online selling business on Amazon with moderately priced items.
Consider the Best Seller Rank
The lower the BSR, the higher is the number of sales. On the products page, you will find a Best Seller Rank search box. You can type in the BSR and get the top products.
For estimation of sales it is better to reverse engineer the BSR. Ideate the number of sales you want in a specific interval of time and accordingly check its rank.
Also, keep in mind that the BSR of the same product will vary in different categories. A product performing at 200 BSR in the Kitchen and Dining category might acquire a BSR of 5000 in some other category.
Select lightweight items
It goes without saying that heavier the product, higher will be the shipping charges. Choose a product that is light. Also do not go for high volume products as that will increase the packaging cost. Get light and small products to increase the profit margin.
Keep in mind that you do not end up choosing a fragile item or too lightweight product. It would increase the risk of being crushed by other items and lower customer satisfaction. Try to pick items that are sturdy, durable, easy to hold and pack and not very heavy.
Sourcing products on amazon
You have boiled down to the right product. Now who will be your supplier? You need the right and reliable partner from whom you will source your products. The quality should be good so that you can win the trust and confidence of your customers. Unsatisfied customers can leave negative reviews and that would sink your business. So, you need to check who you will source your products from. Here are some suppliers who sell good quality products at a low piece to ensure high profit margins-
Mail the suppliers to get the desired information. You should also buy a few test samples to assess the quality and then choose the best supplier. As you start selling, get yourself connected with other entrepreneurs and get to know their reliable partners.
How successful is selling on Amazon?
Your earning can depend on several aspects like product selection, price tracking, keyword research, image quality and optimisation of listings. Your marketing campaigns too, play a role. It all depends how hooking your product page is and how converting your campaigns are.
How much can Amazon sellers make?
It can vary from $4000 o $1 million depending on your strategies of selling on Amazon. Get dedicated customer base, boost sales and you will rise to the top of success. You need to optimise listings, choose the right product, research keywords, and calculate expected revenue and thus optimise PPC campaigns to gain high returns.
What does it cost to sell on Amazon?
If you are opting for the Individual Plan, you have the following amount to pay to Amazon-
- $0.99 per item sold
- 15% referral fee (although it can vary depending on the product)
- A closing charge depending on the product category
To give you a clear idea, let us take an example of selling a book-
Suppose you sell the highest limit of units- 40.
You set the price at $10. Your gross income is $400.
Out of this, you pay-
- $39.6 as individual fee per item
- 15% of $10, that is $1.5 for each item, amounting to a total of $60 as referral fee
- A closing charge of $1.8*40=$72
Thus, the amount payable to Amazon stands at $171.6 and your net income is $ 228.4.
What is the most sold item on Amazon?
There are several online selling tools to assist you in product research. This helps in finding the most profitable niche and a promising product that has demand and low competition in the market place. Track the historical sales, trends and price per item. You can also check the market demand and popularity over time to gauge the sales velocity of the product. Electronic components have a potential customer base with almost 40% of customers opting for electronics goods in 2019.