What to Sell or Not to Sell: Choosing the Best Product to Sell on Amazon
It used to be easy to sell on Amazon, any product seemed to be successful but that is no longer the case. Nowadays finding a successful item to sell is not that easy. A lot of research and time needs to be invested in order to choose the correct items. There are so many sellers (around 5 million) and so many products but all is not lost; the expertise of a company providing online sales management services can provide the needed Amazon sales support.[i]
Amazon is definitely still the place to sell as it is still growing at significant levels and it is one of the best marketplaces due to the ease of sale and access to customers. Whether you are starting to sell on Amazon or are looking to add products to your offering the selection of products for Amazon is not easy. But all is not lost, we can provide you with some points to get you heading in the right direction.
TYPES OF PRODUCTS TO SELL
A low price but not too low
Ease of shipping - light and small items
Sells more than 10 a day
At least 50% profit margin
Customers want to buy it
Products that you can sell at relatively low prices means that people will be comfortable with spending some of their disposable income on the items and they will not hesitate as with big ticket items. It is not necessary to sell items at a high price for them to be profitable, just because the product has a higher price does not mean that there is more profit in the sale. Items that are light and small mean that you will have lower shipping costs which will leave you with more profit. The rule of thumb is that if you able to sell more than 10 a day it is the beginning of a sustainable e-commerce business. There should be sufficient profit margin to make it viable. It is also important to remember that you are not your own customer, other people need to want the item, it is not enough for you to be the only one who is excited by the item it needs to be commercially viable.
TYPES OF PRODUCTS TO AVOID
Mechanical or Technical
Items that break easily
Already sold in high volumes
Sold in big name shops
Tech items or those that are very mechanical are not always worth the effort that needs to go into the after-sales support. If you choose items that are fragile then it is possible that these will be damaged in the shipping process and need replacing which may eat into your profit margin. Items that are already sold in high volumes may be an indication that the market is saturated, and it will be difficult to stand out among all the sellers and remember there are around 5 million sellers on Amazon. Trademarked products are trademarked! These are controlled by the owner of those trademarks. If items are already sold in large retail stores you have an added competitor and it is difficult to do battle with the big names when it comes to price.
There are definitely items that fit into the “do not sell” category that are top sellers, but this does not mean that they will be worthwhile to choose to sell – just because they are best sellers does not mean that they will be profitable. Therefore, when doing the research into the right product you need to go beyond just looking at what is the most popular products on Amazon. The focus point for choosing items is whether or not they are commercial enough and these are not the type of items that you would naturally think they are – products like silicon cooking and baking items and compression clothing have shown to be among the top sellers on Amazon.
So, you need to think outside the box when thinking about items to sell on Amazon and these guidelines should help jumpstart the process of understanding which products are the best for your e-commerce business. If at any point you need support then services of a sales and management consulting firm is a great way to get help with product identification, selection and selling on Amazon.
How the London Bridge Project Can Help to Deliver Success
The London Bridge Project (LBP) is a leading sales and management consulting firm that provides both amazon consulting services and amazon sales support for businesses looking to grow exponentially within the biggest marketplace in the world. We offer a complete end-to-end service for Amazon based businesses, which includes providing valuable insights into Amazon sales data and a pipeline of under-explored opportunities within your niche.
If you would like to learn more about how the London Bridge Project can help your online business, make sure to contact a member of our team today to discuss your requirements.