What to look for when you hunt for product to sell on Amazon? Should you go after hype goods, best sellers, or products you love and use? Three experienced 7-figure Amazon sellers: Ryan Ford, Oleg Zaidiner, Seth Just One Dime share their secrets, tactics, and tips on how to choose the Winning product and make it profitable.
When you start selling on Amazon, there is one ultimate condition you have to tackle first to launch your business and make it profitable. You need to choose what product to sell on Amazon. It is a time-consuming and daunting process. There are two common ways of how people pick products: shorter and longer. They either watch hype goods (usually, these things are temporarily in demand) or run thorough analytical research to find high-potential products.
Shorter way with hype goods and fast returns is luring but profit is questionable and earnings are interim. The longer way to find a product to sell on Amazon is not usually that time-consuming if you have the right tools and can work with analytical data.
We have decided to clarify this topic because during the last three months every day dozens of people who wanted to start their business on Amazon asked: “Is it a good time to sell Masks or Sanitizers or any other hype goods on Amazon?”
Ryan Ford, 7-figure Amazon Seller, FBA consultant for Beginners, online entrepreneur
When it comes to selling hype products, it’s all about TIMING. Right now half of the world and all suppliers are trying to sell these types of products. The market is ridiculously saturated. It would have been a good idea back in January/February to get involved but now I wouldn’t recommend it. What is even more with a product to sell on Amazon like hand sanitizer, you would need certificates of approval from the governmental authority to prove safety and protection for the customer. Amazon is very strict with products around skincare or products that could cause customer harm.
I recommend that you challenge yourself and spend a week or two collecting relevant data about a product to sell on Amazon. Check things you are personally interested in choosing the one which will generate profit in a long-term perspective.
Some helpful guidelines for beginners to follow (Note: you may adjust if you have your own strategy):
Price – You want it high enough to be able to make a good profit margin but low enough that you can afford to source it. Target ~ $15-$60.
Stars / Reviews – You want to find a product with high sales, and low reviews so you can compete against it. Target ~ 1-3.
Weight / Dimensions – The lighter and smaller a product is, the easier and less costly it is to ship. Target ~ 0.1-1.5 pounds and standard size or below.
There are a few dimensions of these hype products to sell on Amazon. Today it’s all about protective gear from viruses. There are lots of hypes emerging every quarter on the market. Usually, the hype is perceived as an opportunity but the only way to be successful is to be super fast.
Even though people do really make money on masks and sanitizers nowadays. If you are a beginner seller, this is the worst thing to do. You will stumble on all the problems if you do not have enough experience to do it smoothly and fast. Lots of those who followed the hype are experiencing problems now with stuck shipments and governmental policies. Every time there is hype, Amazon tries to involve, government attempts to involve. They bring new regulations and new things.
If you don’t have a team working at every stage of the delivery and shipment process and you are just starting your Amazon business, do not go with hypes. You should spend more time choosing your first winning product to eliminate financial losses.
I advise looking at analytical data. Of course, there should be a demand but I still recommend studying numbers and margin. If there are demand and profit, your product will be successful.
If you can find the supplier and the price for production + price of shipment to Amazon warehouse is less than ⅓ of the selling price, there is a good potential for profit.
There are other variables, such as your personal interest. Do you enjoy selling some types of products? Will you enjoy doing it for the next two years or so? I believe that people do their best in promoting, creating listings, pictures when they are engaged. Remember, the more value you can bring your customer, the more profit you will make, the more opportunities you will have to become a successful Amazon seller.
Seth from Just One Dime, Amazon FBA-coach, 7-figure Amazon Seller, online-entrepreneur, a guide to freedom in life
Hypes can bring you good money but do not start with them if your budget is limited and you lack practical skills and theoretical knowledge on how Amazon works. Hypes are very similar to seasonal goods. Stay away from both UNLESS that is specifically your strategy. Use software and data to confirm or rebut any suspected seasonality. It doesn’t work though with hype products as they are like a phoenix rising from nowhere and have no time-tested data to rely on. If you have some kind of relevant data or gut feeling about future hype products, then go on, you’ve got to be bold to succeed in any business, especially on Amazon. I coach thousands of Amazon beginner sellers to approach their first launch with product research using AmazeOwl platform.
As you begin your product hunt, look for 3 traits:
- High market-demand
- Easy market-entry
- Differentiation potential
1. At least 5 sellers each selling 15+ times per day. This guarantees you invest in a product with strong market demand and indicates you too could sell 15 times a day. Fewer than 5 sellers selling at this rate could indicate too small market.
A product selling for $25-$125. A higher-priced product will decrease your number of competitors because most competitors sell in the $15-$25 price range. In contrast to what many gurus claim, higher-priced products are sold on Amazon better than lower-priced. The average sell price of the top 5 selling products on Amazon is $62.
2. At least 3 top sellers with fewer than 100 reviews. This indicates a newer market. If shoppers are happy to buy products with fewer reviews, they are likely to buy your new product too.
3. Fix a problem customers are complaining about. Find this by reading the competitors’ critical reviews. Fix a problem that can easily be shown visually. The differentiation you bring needs to be easily shown in the featured image. Be aware of both perceived and real differentiation. Perceived differentiation is how the product appears. Real differentiation is how the product functions.
Recap: Profitable Amazon FBA business is not just a side-hustle, it is a full-time engagement in your own business. It is not easy but it is definitely worth it and lets you gain freedom and manage your life. If you are just starting on Amazon, avoid the hustle, risky strategies and approach every stage steadily equipped with the knowledge, tools, and relevant skills.