Finding the right products to sell on Amazon is one of the most important and trickiest parts of the Amazon-sales process. In this article, StartupCamp coach and expert Amazon seller Jamie Vie shares his 5 secrets to choosing winners and building a six-figure passive income business.
How much would an extra $3,000 a month change your life? What about $6,000? Or $10,000?
Many savvy entrepreneurs are pulling in upwards of $10k a month, at home and on the side, by using the same site we all use nearly every day.
Their seller platform has allowed hundreds of eCommerce entrepreneurs and businesses to reach financial goals that would have otherwise seemed impossible without million-dollar investments in manufacturing, storage, and logistics.
Maybe you’ve already dabbled in eCommerce selling and are seeing the benefits, but haven’t yet seen the sort of numbers that you would really like—or maybe you’re just starting out, and you’re looking for a life-changing second income.
The truth is, selling on Amazon can be challenging when you’re first starting out. There are literally more than 3 billion products currently sold on the site, so it can be intimidating to jump into the pool without knowing how to swim.
Honestly, that is where most Amazon beginners fail.
New sellers find some products that are popular, set up shop, and sit back. Others don’t even know where or how to begin. Either way, you’ll probably spend a lot of time spinning your wheels and wondering why you aren’t seeing the same sales figures as other Amazon entrepreneurs.
The problem: not knowing how to find the right products to sell, and having a strategy to make sure they succeed.
Years ago, I was in the same boat as a lot of people. I was successful in my business career, but stressed out by the demand, and seeking a way out. After realizing the growth potential of an eCommerce business, I dedicated my spare time to building an Amazon brand. In my first year alone, I ended up raking in $350K in sales.
In this article, I’m going to walk you through my 5 proven secrets to finding products that are bound to turn a profit. It’s more than just finding what’s popular, or getting lucky with selling the right product at the right time. It’s really all about strategy, selling smart, and knowing where to look.
Keep it Light
Once we decide we are going to start selling on Amazon, the next seemingly logical thought is What can I sell to make me the most profit?
A valuable question, but one that’s also incomplete. See, one of the somewhat hidden costs of selling through Amazon is the storage and handling fees for using Fulfilled By Amazon (FBA).
FBA is what allows us as sellers to tap into Prime, meaning free two-day shipping for our buyers. If you aren’t shipping Prime…you aren’t selling on Amazon. It’s the expected standard, so buyers will be quick to overlook any product that is not available for Prime.
Storage and handling rates are always determined by size and weight, so selling items that are light will keep our FBA costs low, and in turn, keep our profit margin larger.
For example, say you’re passionate about fitness and know you’d be able to write a killer description for your Amazon listings, so you decide that’s one of your markets. 25lb dumbbells might be a high ranking product in the fitness market, but the cost to store and ship a dumbbell will really eat into your profits. The storage and handling fee that FBA passes along to you will be much larger than that of an item under 2 lbs.
So let’s look at smaller items, like wrist wraps for lifting. These are highly sought after, valuable items to fitness nuts. Even better, they weigh only ounces. Your storage and handling costs will be next to nothing, meaning much bigger profit margins.
So finding items that are under 2 lbs will help keep your profits up, but weight isn’t the only hidden cost. AMZ charges warehousing fees based on size, so you’ll want to be aware of how big the product packages are…
Keep it Small
Chances are, if you’re keeping your products light, they will most likely be small, but that is not always the case. Kites, for example, are light, but usually come in larger packages.
This is important to note because Amazon charges sellers warehousing costs based on the size of the packaging. Currently, the storage fee is about $1.50 per square foot. That adds up fast if you’re warehousing hundreds or thousands of products.
Whenever I’m determining a good product to sell, I always make sure it fits into a standard 14” x 8” x 5” box. This keeps my warehousing costs low but also makes for easier estimating and calculating my costs before bringing my products into the Amazon warehouse.
So now that we know we’re looking for products that are both small and light, we will want to consider how we can add value to them. What can we do to make them more enticing against the wide range of competition?
The Value Add
Like I mentioned before, there are BILLIONS and BILLIONS of products sold on Amazon, with MILLIONS of products sold within each category. Even with the perfectly selected items to maximize profits, it’s hard to stand out in the crowd.
That’s why I always suggest bundling—which means adding “Free” accessories that compliment your main product.
Looking back to our wrist wrap example, an accessory to help make it stand apart from competitors might be a carrying case, sweatbands, or other small items that would be simple to build into the full cost.
Not only does it entice buyers, but helps beef up your listing by adding the almighty word “FREE” into your title and description.
So now our products and listings are ready to go. But first, we need to do some market research.
Join The Crowd
From our years of training and studying the art of entrepreneurship, joining the crowd might seem counter-intuitive. But now is the time to remind ourselves that our goal is much more simple than trying to sell the most innovative product on Amazon—we’re just trying to find something that sells, period.
In the world of Amazon, selling a product in an active market, where lots of others are selling, ensures us that we will make at least some money.
With Amazon’s Profitability Calculator and other tools to assess the sales of unique items on Amazon, we’re able to comb through products we’re thinking about selling and see how well they perform within their given category.
And as you’ll see, even products with low placements are able to make thousands of dollars in revenue a month. So, if wrist wraps with high-teen rankings are still selling hundreds of units and making thousands of dollars in revenue, you know that’s a good market to be in.
Well, we’ve got everything lined up. The perfect sized product that we know sells well month to month. This leads me to my final secret.
Before you make a big investment with hundreds or thousands of one product, test small. The last thing you want is to be sitting on a large chunk of unmoved units in Amazon’s warehouse. Take it slow, see how quickly they move and how well they compare to other similar products they’re competing against.
You will also be able to iterate and improve your listing, description, and photos to maximize visibility, ranking, and overall sales.
Ready to Start Selling?
Becoming an Amazon wizard doesn’t happen overnight. It takes patience, practice, and a little bit of experimentation, but with these secrets above, you’ll have a big leg up on your competition.
And the good news is, you don’t have to jump into Amazon alone. If you’re open-minded about the possibility of becoming an Amazon seller, you’ve got to check out Amazon Impact, our free training course for aspiring Amazon entrepreneurs. In Impact, we dig deeper into how to find profitable products, position them to sell, and take advantage of all the benefits FBA has to offer.
Check out the free course now!