How to Find Profitable Products to Sell on Amazon
Welcome to the third update in my journey to try and sell a private label product on Amazon! For those of you that missed the first two updates you can see Update #1 here and Update #2 here. Also if you haven’t already, make sure to join our free Amazon FBA Facebook group!
So far we have discussed a lot of fluff and mandatory stuff to get the case study rolling, in today’s post we are starting to get into the good stuff!
This article will cover the most important part to selling successfully on Amazon, finding a profitable product to sell. I know that many of you have been waiting for this part and have questions regarding this part of the process.
I am going to try and cover all parts of the process the best I can, but please remember that I have never sold on Amazon before, which means all of the information I am providing is stuff that I have gathered across the internet.
I also provide some of my own ideas that I have not tested but feel like they are important. I am in no way calling myself an expert or master, I am simply telling you all of the information I have learned and providing it in an easy to consume resource. That is my goal with this update.
This update is going to be split up into two parts, the first part is going to cover the WHOLE process of finding a good product and then the second part is going to reveal some details of my actual product as well as compare it to all of the requirements that I layout.
I am doing this because I think it is a good idea to show the process that I used to find my product and then show you the details of the product that I am going to sell on Amazon.
This is going to be a very long and detailed post that will take you a while to fully consume all of the information. I have put in a lot of work into this post which included hours upon hours of independent research to find all of this information for free on the internet.
I hope that you will find it useful and a good resource that you will be able to bookmark and keep coming back to when you are searching for a product.
Buckle in and let’s get started shall we!
Amazon FBA Private Label Basics and Outline
I think that it is important to fully understand the basics of how this business model works and the basic outline of the process. This way we will have a solid understanding of what we are going to and how we can go about it in the most efficient way.
This is NOT Retail Arbitrage
We need to clear this up and make sure that everyone is on the same page before we get started. What we are going to cover in this article and in this case study as a whole has nothing to do with retail arbitrage.
Retail arbitrage is where people run around to a bunch of stores and try to find underpriced items that they can sell on Amazon for a profit, that is NOT what we are doing here.
What We ARE Doing
We are going to be finding a product that we can source to China for cheap and then private label that product under our own brand and then sell it on Amazon. We are creating a legit business that is scalable and sellable, unlike retail arbitrage.
Understand the Basic Process of Amazon FBA
I think that it is important to understand at least the basic process of how this whole thing works. It is broken up into a couple of different parts.
The first thing we do is try to find a supplier that will make our product for cheap. This usually happens in China. We are creating our OWN brand and the product that is made in China is going to be your own product.
Once we find our supplier and agree on an order, they will ship it to an Amazon warehouse somewhere in the United States.
Once Amazon has our shipment in the warehouse we can now put our listing live on Amazon and start selling.
This is a VERY basic outline that leaves out 95% of the whole process but you can see how this differs from retail arbitrage and you can see how Amazon FBA works on a basic level. I wanted to highlight the process so that we are all on the same page going forward.
Picking a Product is the Most Important Factor to Having Success
I have heard this from just about everyone who is selling or has sold on Amazon. I can see why, your product determines everything about your business and that is an important decision to make.
Just think about it, let’s say that you picked out a product that was bad(didn’t meet any of the requirements of a profitable product) but then you did EVERYTHING else perfect. Meaning you did every other part of the process perfect such as finding a good supplier, good price, high quality product, optimized listing, etc.
Guess what happens?
Yup, you more than likely will fail and lose money.
That is why it is vital that you spend a lot of time finding the right product that will give you the best chance for success. I am hoping this post will be of help to you all while you go through the process and hopefully guide you to finding the perfect product to sell.
Checklist and Requirements for Finding a Profitable Product
You just got done reading about how important it is to find a good product that you can sell. What we are going to talk about next is how exactly to find these products.
I have scoured the internet and tried to find as many different sources as possible when it comes to the requirements for a good product. I have compiled everything I have found into the list below and I will thoroughly explain the reasoning behind each one.
Quick and Dirty Checklist of Product Requirements
- Average Product Sale Price Between $10-$50
- Lightweight(Preferably under 2-3 pounds)
- Similar Products Have a 5,000 Best Seller Rank or Smaller in Main Category
- No Brand Names within Product Category/Niche
- Simple Item that is not Easily Broken
- 2-3 Products with Less Than 50 Reviews on First Page
- Product can be Made for 25% or Less of Sale Price(Quick Check)
- Room for Improvement and Optimization of Current Listings
- Top 3 keywords have over 100,000 monthly searches in Merchantwords.com
- Product is Easily Outsourced in China
- Year-Round Seller(Not Seasonal)
- Similar Products Being Sold on eBay
- Ability to Expand Your Brand with Related Products
- Can Make a Superior Product over Similar Products in the Market
- Product Encourages Recurring Purchases
- Multiple Product Keywords