Because Amazon has a scientific product classification, sellers are easy to find their own favoured niche areas.
Currently many sellers use this method, get product ideas in familiar categories through the Amazon's official Best sellers or Hot New Releases.
Novice sellers usually choose a simple product at the beginning, which includes the following characteristics:
①. durable, universal
②. you can find suppliers in China;
③. the product can be iterative update;
④. the product can be operated without the use of introduction;
⑤. no electronic components and moving parts;
⑥. you can use it to complete a job;
⑦. to do light weight, small size products, less shipping cost means more profit.
2. collect keywords
Determine the best products to sell among the same kind of products. take anker as an example, B01HTH3C8S, we can use GK tools to check which keywords has brought the traffic for product.
3. Analysis of market trends
Analysis of product market prospects and the degree of competition. Seller need to collect the following information:
①. The product historical price level of the
②. product sales
③. Product sales rankings
④. The number of product reviews
⑤. The number of sellers and inventory
⑥As there are many data, in order to more convenient statistics, seller can get the above information directly with the tool.
①. Amazon search box
②. Amazon best seller
③. Amazon Movers & Shakers
④. Amazon New Releases
①. Sellerspirit — keywords tools
②. Google Trends
③. Google Planner
④. junglescout — market research
4. verify the market
After using some tools to select products, you also need to go to Amazon to focus on the increase and decrease of search results, and if the search volume continues to rise, the heat is on the rise. In addition, you can go to Alibaba to look at the search results, focusing on product rankings and sales between the two platforms to determine the market capacity.
Through the above market judgment and data we should know:
①. The larger the search volume and results on platform, indicating the market has high demand, we can see if the product has 5-10 pages, we can also test the ranking of first result page to judge the sales.
②. If the search volume skyrocketing, it proves that many urgent needs, as long as we are fast, absolutely can rub some traffic.
③. How to determine a product is new product? You can judge it by launch date, sales volumn.
④. The favour degree for your product and is the product itself suitable for Amazon FBA? FBA is suitable for light weight- small size and volumn product.
5. Calculate the profit
Once the above steps have been completed, and now the seller need to do is calculate the estimated profit, and the product pricing.
The gross profit is the selling price minus the product cost, and the profit margin can be calculated by dividing the profit by the selling price.
If the seller buys a travel pillow for $ 5.9 and then sells for $ 15.9 then the gross profit is $ 10, so the profit margin is 62% and the profit margin is high! But sellers also need to look at their competitors' sales and prices, and sellers also need to look at other competing variables to get a better understanding of the average selling price.
6. find the source
The best way find the source is to visit factory yourself, and to find the upgrades styles of current good sales product, so that the pain of the original product can be solved.
Seller may have to visit the assembly line. Visiting and asking tif the ptoduct is infrigement and the certificate is complete. Otherwise, you will be hurt when you are audited.
7, on-line products
After finishing talking to the factory, prepare a small batch of stock quickly, launch the products on Amazon, and quickly validate the marketplace and user's reactions through some methods like discounts, EDM, or invitation purchases.
Through the first batch of product sales, you can quickly know the user acceptance of new products, sales cycles, profit levels, and then decide whether to carry out large quantities of FBA stock, or re-select products, or optimize the upgrade products.