Over the years, the Amazon marketplace has grown to become a vast treasure trove for both consumers and sellers. With millions of products flying off virtual shelves daily, it’s a tempting prospect for anyone with a business idea. But with so much competition, choosing the right products to sell on Amazon can feel like finding a hidden gem in a mountain of pebbles. Our guide today will equip you with the knowledge to navigate the Amazon landscape and select products with high sales potential. Here are some concrete steps to approach the age-old eCommerce question of “What to sell on Amazon?”
TABLE OF CONTENTS
1. Know Yourself, Know Your Market
2. Unearth Amazon’s Gems with Market Research
3. Popular Categories with Staying Power
4. Niche Products for a Less Competitive Marketplace
5. Effective Business Practices that Elevate Your Products
6. Tools of the Trade
7. How VASO Group Helps You Find Your Perfect Product Idea
Know Yourself, Know Your Market
It is tempting to chase a popular category, but you may find yourself burnt out and depleted of both resources and time trying to keep up with rising demands. Therefore, before diving headfirst into product research, take a step back and assess your resources and strengths. Here are some key questions to ask yourself:
- What are your interests and expertise? Are you passionate about crafting unique jewelry or do you have a knack for sourcing trendy clothing? Aligning your product with your interests can make the selling process more enjoyable and fuel your motivation.
- What kind of budget do you have? Consider the upfront costs of buying inventory, packaging materials, and Amazon seller fees. Some products, like handmade crafts, may require lower upfront investment, while others, like electronics, might require a larger initial outlay.
- How much time can you dedicate? Researching products, creating listings, managing inventory, and fulfilling orders all take time. Be realistic about how much time you can commit to your Amazon business.
Think of these questions as 3 overlapping circles in a Venn diagram. The ideal overlap between all 3 of these circles will determine the product category that is most suitable for you (if this sounds similar to how you find your dream fulfilling job, also known as “ikigai” in Japanese, it is.)
Unearth Amazon’s Gems with Market Research
Once you’ve found the ikigai of your eCommerce business, it’s time to understand the Amazon marketplace that you will be competing in. Here are some effective ways to research potential products:
- Amazon Best Sellers List: This is a gold mine for identifying popular products across various categories. Analyze the top sellers in your area of interest to understand what resonates with customers and identify potential gaps in the market. Also think of any potential bundles to make a value kit that will attract customers over smaller pack quantities.
- Customer Reviews: Once you’ve identified best sellers you’d like to model your product after, look at their customer ratings and reviews. Reviews offer valuable insights into customer satisfaction. By analyzing what customers are saying about these best-sellers, you understand what buyers love (and dislike) about the product and can use this knowledge to improve your own product offering.
- Market Research Tools: Utilize free tools like Google Trends or social media listening platforms to understand broader consumer trends and identify emerging product categories.
Armed with this knowledge, you can marry your business ikigai insights and market research insights to find the perfect product that fits into both your business model and gaps in the marketplace.
Popular Categories with Staying Power
While trends shift, some product categories consistently see high sales volume on Amazon. These categories are evergreen, with strong buying power backing their sales, and a consistent (growing) volume of demand for years to come. If you’re interested in dabbling in popular categories, know that the competition is fierce, so see if there are ways you can separate your product from the rest of the crowd. These top categories include:
- Home & Kitchen: This broad category encompasses everything from appliances and cookware to furniture and décor. Look for sub-niches with a lower competition level, like sustainable kitchenware or space-saving furniture solutions.
- Fashion: Clothing, shoes, and accessories are ever-popular on Amazon. However, competition is fierce. Consider specializing in a particular style, size range, or ethical production to stand out.
- Beauty & Personal Care: This category includes everything from skincare and makeup to haircare and bath products. Natural and organic beauty products are a growing trend, as are products catering to specific skin concerns.
- Electronics: While this category boasts high demand, it’s also fiercely competitive and requires a larger upfront investment. A less demanding option is to consider specializing in a specific niche like phone accessories or computer peripherals.
- Pet Supplies: The pet industry is booming, with pet owners willing to spend on their furry (or feathery) companions. Tap into overlapping niches amongst pet owners like eco-friendly pet toys or personalized pet accessories.
Niche Products for a Less Competitive Marketplace
While established categories offer a safety net, venturing into niche markets can pay off. By targeting a specific audience with unique needs, you’ll face less competition, making it easier to stand out. You’ll also be tapping into niche communities, which are often passionate and loyal. Once you establish yourself as a trusted source within a niche, you can cultivate a dedicated customer base. Lastly, because niche products often cater to specific needs and the demand outweighs the supply, you can command premium prices for your products compared to more generic offerings
To find your niche, here’s a roadmap to get you started:
- Identify your passions and skills: What are you knowledgeable or enthusiastic about? This could be anything from gardening to fitness to pet care.
- Research online communities: Explore forums, social media groups, and online communities dedicated to your area of interest. Identify common pain points and unmet needs.
- Brainstorm product ideas: Based on your research, brainstorm solutions to the problems you’ve identified
- Validate your ideas: Don’t just assume there’s a market for your product idea. Use Amazon search terms and keyword research tools to gauge search volume and competition level. Look for a sweet spot with enough demand but manageable competition.
- Analyze existing products: See what products already exist within your niche. Identify areas for improvement – are there functional shortcomings, a lack of variety, or subpar customer service?
- Source your product: Once you’ve validated your idea, determine how you’ll source your product. Will you manufacture it yourself, partner with a manufacturer, or find a dropshipping supplier? Consider factors like minimum order quantities, production lead times, and quality control.
Effective Business Practices that Elevate Your Products
Selecting the right product is just the first step. There are so many other drivers behind a successful product line such as advertising, content, pricing, and organic marketing via customer reviews. When you aim to achieve long-term success on Amazon, think of those factors:
- Product Differentiation: What makes your product unique? Do you have a compelling brand story, superior quality, or innovative features?
- High-Quality Listings: Professional product photos, informative descriptions, and targeted keywords are crucial for attracting customers.
- Competitive Pricing: Research average prices within your niche and set competitive pricing that factors in your profit margin.
- Positive Customer Reviews: Positive reviews are like gold on Amazon. Encourage satisfied customers to leave reviews and address negative feedback promptly and professionally.
The road to Amazon success is a marathon, not a sprint. Be patient, continuously learn and adapt, and focus on building a strong brand and positive customer relationships.
Tools of the Trade
Several online tools can streamline your product research and listing creation process:
- Jungle Scout: Provides in-depth product research data, including sales estimates, competition analysis, and historical trends.
- AMZScout: Offers similar functionalities to Jungle Scout, with features like product idea generation and keyword research tools.
- Helium 10: A suite of Amazon seller tools for keyword research, listing optimization, and competitor analysis.
- Canva: A free graphic design platform perfect for creating professional product images.
How VASO Group Helps You Find Your Perfect Product Idea
Our excellent team members in the account management department are very knowledgeable about market research and market trends. We will walk you through the entire product development process, and combine your business insights (your business ikigai) with learned market insights to find the perfect product idea for your venture. Rest assured, we’re here with you every step of the way.
Let’s grow your business together.