Find a Winning Product for Amazon and create passive income
Curious to know how to find Amazon-winning products that will work for you? Well, you are on the right way to find some interesting stuff here.
Today we want to talk about why Amazon is a great place for sellers to generate passive income. If you consider yourself a serious seller and passive income generation is your goal, I suggest you take a look at what Amazon has to offer. As a new seller on Amazon or eBay, you may spend hours looking for winning products that have the most profit margin and customer demand, and that's why we put this guide together.
Let’s discuss the 5 best ways to find golden products on Amazon that can help you boost up your sales.
1. Analyze market research
Do you enjoy working with data? If so, good! Working with big data is the important thing in the world of Amazon right at this present moment. It is super useful, and it is only going to get more so as time goes on. You can find out more about it by exploring several tools that help sellers and extract every detail about the product.
Any software that will help you to do market research is a valuable tool to find a winning product on Amazon. In that regard, we highly recommend you Seller App, Jungle scout, Helium10, and Keepa with their powerful research tools.
What to keep in mind when we're searching for a winning product with the help of these tools?
- Consider Price Factor
- The price factor is one of the most important factors when deciding your winning product that will open the door of fortress towards success. Consider those products that can be sourced in minimal amounts without compromising their quality and can be sold out with a reasonable profit margin because Amazon takes a big chunk from your sales in the name of selling fees. Buyers usually do not bother to spend on problem-solving products, provide value to their life, and cost less, so it is better to consider the $20-$60 figure as for your product price.
- Check Product Reviews and Ratings
- It is crucial to pay attention to the number of reviews. One of our golden rules is to never go with a product that has more than 2000 reviews. The lower, the better obviously, but 2000 reviews of your competitors give you an idea about how much space is left to launch in this niche with other giant competitors who already eat up a big chunk of sales on Amazon.
- It is also recommended that when you analyze a product through tools, you should keep an eye on ratings of at least 15 top sellers that are lying on 1st page organically, that their average rating should be greater than 4.3 this will also increase your confidence that buyers love this product and this product specifically has a good reputation among buyers.
- Analyze Opportunity Score
- Most of the tools give ideas about product viability by mentioning the opportunity scores. That will also help sellers to analyze the average success rate if they sell a particular product. There's nothing wrong with focusing on popular niches, but in general, the fewer the competitors, the better your chance of selling.
- Study Sales Unit
- Don’t focus on monthly revenue generated by each seller. Instead, find out how many units the top 10 sellers sell in a day. This will guide you towards your selling strategy. If any seller sells a good number of units a day you should consider what strategy they follow. How much old seller is this? How much value does their product provide to their buyers? And how much value you can add in similar products to facilitate your potential buyers whether by price, by quality, or any space for improvement in this niche to increase sales. You should analyze every detail.
2. Amazon as a seller (Big No-Go area)
It is highly recommended not to sell those products that are already sold by Amazon itself because Amazon runs a lot of promotions and different prices. They also run product price wars on a particular product. So, if you want to sell a product on Amazon, you should focus on a few things as for pricing factor
- Where is the product in demand and where it is not in demand?
- What price should you set the product?
- How aggressive should the seller be in pricing the product?
- How aggressive Amazon is in pricing the product?
- How aggressive Amazon is going to run promotions of the product?
- How aggressive Amazon is to run promotions of the product?
Knowing these, the seller can price the product competitively.
Never take Amazon for granted. If Amazon runs a price war, the seller should know how to price the product competitively.
- Here sellers need to learn the strategy and tactics to win the product war.
- Sellers need to be aggressive in pricing the product.
- Always set the price floor below Amazon's price.
3. Amazon Best Seller list is a tunnel, dig it
The Amazon Best Seller list is a public list showing books/products ranking highest in sales on Amazon.com since its launch. It's a great place to start if you're looking for products that people are interested in and eager to embrace and it can help in finding out what people like and want in their day-to-day lives.
Take a look at what is selling on the Amazon Best Sellers List and get ideas for your product to sell. You can search by category or by top-level bestsellers, so you may want to visit the top-selling products in other popular product categories too!
4. Don't pin your hopes on one or two hits
You may be tempted to try and ride the coattails of a successful product by copying it, but this is rarely effective in generating additional income for you - so don’t do it! Products with the really broad appeal will bring stiff competition against you if they're already popular while niche items can prove difficult even when there's demand out subsequence buyers who want them—you might need more than one hit before these sell well enough that people notice what you've made at all let alone purchase some.
5. Always consider lightweight small Items to sell
A high-end, high-cost item might seem like a good idea for being able to charge a high price; it isn’t because the shipping cost will eat into your profit margin. In addition, people who purchase higher ticket items tend to be less forgiving about shipping costs and damage claims.
So, if you are considering selling items through Amazon, there are a few things that will help to increase your chance of having your products picked. First, sell smaller items that are lightweight, item has to be lighter than 5 pounds. Also, the item has to be durable, without mechanical or electrical parts that can break. For example, an expensive laptop would not be good because it would easily break if shipped in the mail. These factors are important for your products’ success.
As we all know during the year 2020-2021, the hype of online business increased so much, and the process of buying and selling gain the trust of buyers. 1000s of businesses switch to online platforms to sell their products and the Amazon Marketplace is one of the giant markets among all businesses where 1000s of sellers selling their products successfully and lots of sellers are those who are facing failure also. So, if you want to become a successful seller on Amazon and make some profit, you have to keep eye on every gray area of marketplace where you want to launch your product. You should do detail product research, market research, and competitors’ analysis from every aspect and find opportunities where you can beat your competitors in the same niche before launching. So, thinking out of the box and doing a detailed evaluation of the product is the fundamental key to getting success in the Amazon Marketplace.