Selling on Amazon looks like an easy process especially via the Amazon FBA program. You just need to select the product, find the supplier, ship it to the Amazon warehouse, and work on product rankings. But, what to Sell on Amazon? is the most important and tricky part of selling on Amazon.
Most people end up losing their investments after selecting the wrong product. It is the most critical part of the whole process. That’s why we should select a product after going through a whole process and keep in mind certain selection criteria. Moreover, the viability should be checked before and after every step. It means first when you select a product after checking its viability and decide to sell it on Amazon. Next, you give an order to the supplier or manufacturer of that product. Then you ship that product stock to the Amazon warehouse. This whole process may take 3-6 months time and it can be possible that the product may not be viable now.
So, in order to increase the chances of your product on Amazon, it is essential to check the viability of the product before and after step. Many times especially during the coronavirus pandemic times, there were situations when the delivery took too much time. In many cases when the stock reached the Amazon warehouse, the product was no more viable to sell.
5 Factors to Check the Viability of the Product:
The experienced Amazon sellers always keep these five factors in their minds before selecting the product. Here one has to keep is in mind that everything is selling on Amazon. I would like to discuss the safest path that has very few chances of loss.
- Price of the Product:
The first and most important factor is the price of the product you want to sell on Amazon. It is recommended to select small products, products of price less than 10 dollars. This gives many advantages later on advertising and ranking stages. Moreover, it has more sales velocity and hence gets more reviews in less time.
When you start advertising the products and announce giveaways and other marketing techniques, you have to give free products to customers. This is called bleeding. So if your product is of a high price, it will bleed more money for advertisement when compared to low price products. As you give more giveaways and free things to your customers, you get more reviews. So low priced products will bleed less during this time.
- Product Rating
The product rating is the second most important factor while selecting a product. The product that has more positive reviews is viable to launch at Amazon. It means the product that attracts more positive reviews is the one people don’t get critical of it. So the product review rating should be more than 4 and better 4.3, 4.5. This product will have fewer chances of return and other claims.
For example, toilet paper has a one time use, and mostly no one concerns about the quality hence attract positive reviews. On the other hand, any electronic device has more chances of return, claims, and hence negative reviews and ratings.
- Age of the Store
To compare your product with any other existing seller on Amazon, the age of that seller should be kept in mind. The store with more age usually more than a year is always preferred by Amazon. Moreover, PPC rates are also different for stores having more age. So while comparing your product and finding its competition, try to compete with the product which is relatively new.
- Sales Velocity
To check the viability of the product, check the sales velocity of the existing similar products. It means if the existing product has more daily sales, there are chances to increase your sales too. If you observe that the existing products have more age yet low sale velocity, it means that people are not much interested in that product.
Moreover, more sales velocity means more reviews and hence an increase in rankings.
- Number of Reviews
Amazon starts giving value to the product that has more reviews. It means people love to purchase that product and also love to talk about it. Amazon automatically increases the ranking of that product. This is how the algorithm of Amazon works.
That’s why try to select the product that attracts more reviews and has more sale velocity.
Summary:
Summarizing all the above viability checking factors of the product, it is important that a product should have a low price, high rating, more age, greater sales velocity, and a number of reviews.
Put most of the time and effort into product selection. Otherwise, you will end up losing all of your capital. There are also many other factors but those discussed here the most important. Keeping them in mind will increase the chances of success on Amazon.