Are you captivated by the prospect of launching your own Amazon business? Amazon provides a fantastic platform for ambitious businesses to display their products and reach a large customer base, with millions of buyers perusing the virtual aisles every day. However, getting started might be difficult, especially when determining what to sell. In this article, we will reveal five simple steps to assist you make that critical decision, backed up by recent data, allowing you to confidently start your Amazon selling adventure.
Before we get started, here are some eye-opening figures that demonstrate the enormous potential of selling on Amazon:
- Amazon’s market reach: Amazon has over 200 million unique monthly visitors in the United States alone as of 2021. This astounding figure highlights the massive customer base you can reach by selling your products on the site.
- Global e-commerce growth: In recent years, e-commerce has undergone substantial growth, with online retail sales expected to reach $6.38 trillion (about $20,000 per person in the US) by 2024. Amazon, as a significant participant, has a sizable share of this industry, making it a perfect platform for prospective entrepreneurs.
- The dominance of third-party sellers: Third-party sellers make for a major amount of Amazon’s sales. Third-party sellers on Amazon’s marketplace earned more than $300 billion (about $920 per person in the US) in sales in 2020, highlighting the numerous chances open to anyone wishing to establish their own business.
5 Easy Ways to Get Started on Amazon
Now that we’ve established Amazon’s promising landscape, let’s look at five simple strategies to assist you in picking what to sell:
1. Identify Your Passion and Expertise:
Imagine you’re looking for something fantastic to sell on Amazon, but you’re feeling a little lost and bewildered. One simple method to determine what to sell is to draw on your interests and experience.
Passions are what you truly adore, the activities or themes that thrill and delight you. It might be anything from sports to cookery to fashion to video games. These are the activities in which you naturally incline and love spending your time.
Expertise, on the other hand, refers to the information and abilities that you have acquired over time. It might be from your schooling, professional experience, or even a hobby you’ve had for a while. Expertise is something you excel at and can safely declare you know a lot about.
The goal here is to locate the point where your interests and expertise cross. Consider what you enjoy doing and what you are skilled at. For example, if you enjoy cooking and have extensive expertise in the kitchen, it could be your sweet spot. Another topic to investigate is if you enjoy fashion and have a strong eye for style.
You’ll have a higher chance of discovering a product or specialty that interests you if you focus on what you’re enthusiastic about and what you already know well. This is significant because when you are enthusiastic about something, it shows in your work. It also keeps you motivated and interested in learning more, which is essential for success.
So, take some time to consider your interests and areas of skill. Write them down, brainstorm ideas, and consider how to make them into products that people would like to buy on Amazon. When you offer something you enjoy and are knowledgeable about, it is simpler to attract customers and educate them on the worth of your products.
Remember that discovering something to sell on Amazon is about more than just generating money. It all comes down to finding something that genuinely speaks to you and allows you to share your passion and knowledge with others.
2. Research Popular Products and Trends:
When you’re not sure what to offer on Amazon, “researching popular products and trends” is a quick and easy approach to finding it out. It entails analyzing which products are now in great demand and what sorts of commodities customers are most interested in purchasing.
Imagine you want to establish a business selling products on Amazon but aren’t sure what products to sell. By studying popular products and trends, you are attempting to determine what people are interested in and what they are purchasing in large quantities.
You can achieve this using a variety of tools and ways. You can look at Amazon’s best-selling products, which are the ones that most people buy. You can also take a look at trendy products, which are products that have lately gained popularity.
Another way is to find out what is going on in the environment around you. Consider what others are saying, what products are being marketed or suggested, and what you see in stores or on social media. These can provide information about what is currently popular.
The goal of researching popular products and trends is to uncover a market gap or a product that is in high demand but has limited availability. You have a higher chance of attracting people and earning sales if you can find such a product.
We help puzzled Amazon sellers comprehend that they don’t need to come up with a fully original product concept by educating them on this strategy. Instead, they may look at what is currently working and apply it to their own business. It’s similar to watching what people enjoy and providing more of it to them.
Overall, examining popular products and trends is a good approach to learning about what people want to purchase and then utilizing that information to select the best products to sell on Amazon. It helps sellers in making educated selections and increases their chances of success in a competitive market.
3. Consider Profit Margins and Competition:
Profit Margins: This is the amount of money you can make from selling a product after deducting all expenditures. When evaluating profit margins, look for products with a good balance between the cost of sourcing or manufacturing them and the price you can sell them for. In other words, you want to find products with a high-profit margin.
For example, suppose you find a product that costs $10 to buy but can be sold on Amazon for $30. After fees, shipping charges, and other expenditures are deducted, you could end up with a profit of roughly $10 per product. This would be a profitable margin. However, if the same product necessitates a significant increase in expenditures, lowering your profit to a few dollars or less, may not be the greatest option.
Competition: This refers to how many other sellers on Amazon are already selling similar products. It might be difficult to stand out and earn sales if you select a product with a high degree of competition. On the other side, finding a niche or a product with less competition might increase your chances of success.
To evaluate the competition, consider the number of sellers providing the same or comparable products, the number of customer reviews those products have, and the general demand for those products. In general, it is preferable to select a product with a reasonable degree of competition, which allows you to separate yourself and attract customers.
Taking profit margins and competition into account combined allows you to identify products that strike a balance between profitability and market opportunity. Ideally, you want to choose products with great profit potential and little competition, which will give you a better chance of success on Amazon. Selling gated categories on Amazon is another great way to make a lot of money on Amazon if you know how to do it. The only thing you need to do is get approval and start selling.
4. Validate Your Ideas:
This approach can help Amazon sellers in determining which products they should sell. It is a step-by-step method that determines whether a product concept is worth pursuing and whether it has a strong possibility of success on Amazon.
The following is a simplified summary of the process:
- Start with your hobbies and interests: Consider what you are interested in or excited about. It might be a pastime, a certain product area, or something you know about.
- Determine potential product ideas: Based on your interests, create a list of product ideas that you believe might sell well on Amazon. These might be products that you believe are lacking in the market or have development opportunities.
- Examine current demand: Look out for products that are already popular on Amazon. Examine the best-seller lists, customer feedback, and forums for your product ideas. This will assist you in determining the amount of demand for these products as well as identifying any gaps or openings.
- Assess competition: Examine the competitors for the product concepts you’ve narrowed down. Consider the number of sellers providing similar products, their pricing methods, and the quality of their listings. It is critical to determine whether there is an opportunity for you to enter the industry and differentiate yourself.
- Evaluate Profitability: Consider the possible profitability of the product concepts while evaluating profitability. Calculate the expenses of acquiring or manufacturing the products, as well as packing, shipping, and Amazon fees. Determine if there is a fair profit margin after deducting all expenditures.
- Test the market: Before making a major investment, it’s a good idea to run a small batch of products through the market. You can do this by ordering a limited number of products and selling them on Amazon. This will assist you in determining whether there is a genuine need for your product and gathering user feedback.
- Adjust and iterate: If required, adjust your product, packaging, price, or marketing approach based on market test findings and customer feedback. Repeat and improve regularly to satisfy the demands and preferences of those who are your target audience.
Remember that this method is all about making educated decisions based on study, testing, and adaptation. It assists you in locating a product that is relevant to your interests, has market demand, and has the potential to be profitable on Amazon.
5. Leverage Amazon Tools and Analytics:
Leveraging Amazon Tools and Analytics refers to using Amazon’s tools and data to assist you in determining which products you can sell on their platform that are likely to be successful.
Consider yourself at a large marketplace with many various products for sale, similar to a large store. You want to sell something now, but you’re not sure what people want to buy. Amazon provides specialized tools and data to assist you with this.
To start with, Amazon provides a feature called “Amazon Best Sellers Rank” that displays which products are selling exceptionally well at any particular time. It’s similar to a popularity contest for Amazon products. You can look through the rankings to find which products are now in great demand. This might give you a sense of what people are buying in large quantities.
Second, Amazon offers analytics, which means that they gather and analyze a large amount of data on what customers look for and buy. They keep track of which products sell well and which keywords customers use to locate them. This data is extremely useful since it can reveal trends and patterns in customer behavior.
You can learn what sorts of products are popular, what customers are looking for, and what keywords they’re using to locate those products by using these Amazon tools and analytics. This might help you in making educated selections about what to sell on Amazon. You might pick products in high demand to increase your chances of acquiring buyers.
You can circumvent the obstacles that prevent you from selling particular products on Amazon’s marketplace by using the Amazon Ungating Service. Restricted categories and brands might ask sellers to fulfill specified requirements, such as proving product competence, submitting thorough invoicing, or gaining direct authorization from brand owners. Navigating these restrictions can be complicated and time-consuming, but Amazon’s Ungating Service streamlines and simplifies the process.
You get access to previously unavailable product categories and brands by using this service. Whether you want to sell in the gated categories of beauty, health, and personal care, or top-tier brands, Amazon’s Ungating Service can help you tap into the profitable customer segments.
In brief, Leveraging Amazon Tools and Analytics implies using Amazon’s particular tools and data to identify which products are selling well and what customers are interested in purchasing. It’s similar to gaining insights into the thinking of Amazon shoppers to help you choose the ideal products to sell on the marketplace.
Final Thoughts about finding what to sell on Amazon:
With the phenomenal expansion of e-commerce and Amazon’s market domination, launching your own business on the site might be a rewarding investment. You can boost your chances of success in the competitive world of Amazon selling by following these five simple steps: defining your passion, studying popular products, evaluating profit margins, verifying your ideas, and using Amazon resources. So, begin investigating, taking action, and embarking on your business adventure right now! This information will certainly prove beneficial to many of the sellers reading this, and if you’re interested in reading more, follow and read the Amazon ungating blogs.
Remember that the goal is to select products that speak to you, satisfy the demands of your customers, and have the potential for long-term growth. Your Amazon business can thrive and become a profitable source of revenue if you work hard, persevere, and make wise decisions.