Amazon FBA is a top pick for third-party merchants to sell their products successfully. Around 73% of sellers in the United States opted for FBA as their shipping method. It comes as no surprise that 80% of consumers prefer buying their products from Amazon over other ecommerce platforms. Amazon FBA is also an excellent choice for those wanting to start their ecommerce venture.

However, keep in mind a few challenges when deciding which products to list for success on Amazon FBA. While creating listings could be tricky, you experience through trial and error until you discover the most profitable product. Read the article to learn a few methods you can apply while listing the products on Amazon.

Research the Ideal Product for Amazon FBA 

Product research is the first step in starting your Amazon ventures as it identifies the area of opportunity within the platform. You can’t pick a random product to sell and think it will be successful, given Amazon’s selection of a vast range of items. The intense competition calls for identifying the market demand before listing it.

The easiest way to start is through Amazon itself. Head over to the Amazon Best Seller Page to browse a choice of more than 2 million products. It is wise not to opt for the top sellers but to dive into the subcategories to look for items that have low competition and enough demand.

Keep the Package Small

Amazon FBA’s pricing is based on the product dimensions and weight. Beginning to sell smaller items can save initial costs, as larger and heavier products incur more fees. Also, customer returns are simpler with smaller items, as they take up less space.

Hence, it is practical to keep the FBA prices low to gain a higher profit margin. Selecting inexpensive items with high quality is the best way to start your store operations. Setting a lower budget may reduce spending risks, and help in identifying best-selling items on Amazon FBA.

Target Spontaneous Purchases

It is always a good idea to target spontaneous purchasers by selecting products costing below $100. Particularly, customers may spend a lot of time thinking and researching before spending on an item priced above $100. They may read store reviews and take their time deciding whether to invest in the product.

To avoid the gap between the customer finding the product and planning to buy, it is best to increase the probability of impulsive purchasing. For instance, if your product falls between $20 and $40, the customer may just add it to the cart and proceed with an instant purchase. Hence, it is a wise decision to initially set competitive prices for your products to scale up the customer base.

Analyze Product Performance

The sales trends and history of the product can help you figure out how it has performed throughout the year. Listing an item may not be a good choice if it shows a fall in price during a particular season. During the initial phase of your venture, seasonal products can restrict your profitability and reduce monthly sales.

It is wise to choose a product that is generating sales all year round to reduce the risk of experiencing losses. You can analyze trending products by installing AMZScout Pro Extension to your browser. The tool guides the competition and demand levels of the item, helping you make informed decisions.

Avoid Restricted Items Listed on Amazon FBA

Listing products on Amazon and selling them seems to be straightforward. However, like any marketplace, it ensures to follow the laws and regulations to protect its customers. Similarly, Amazon sellers are supposed to abide by the laws and avoid selling restricted items in their Amazon store.

Amazon has placed strict rules against individuals selling certain products that may need approval before you can add them to the platform. Some restricted brands from the list include Apple, Bose, Gucci, and KitchenAid. Amazon has not yet published a complete list of the restricted items, so it is viable to request approval before planning to sell.

Browse Similar Marketplaces

Some of the popular marketplaces on the internet are worth exploring, as they may provide data about trending products. Some options are Alibaba, AliExpress, eBay, Shop, and other similar niches. Assess what is trending by exploring the best-selling and popular products on their platforms.

Fortunately, eBay has an advanced search option that allows sellers to refine their searches. It lets users specify the location, price, and subcategory to speed up the process. Utilizing this platform, you can find in-demand products and effortlessly list them on your Amazon store.

Plan Logistics Options

Depending on what you are selling use one of the two options for packaging, shipping, and delivery. The first option is the Fulfillment by Amazon (FBA), in which you won’t be responsible for the stage after a purchase has been made. Amazon manages all packing and ensures the product reaches the customer’s doorstep.

Amazon FBA Center in Toronto is used if you want to focus on sales and don’t mind paying a fee to the company. The alternative is Fulfillment by Merchant(FBM), wherein you take full control of distributing the items to your customer base. This involves handling shipping independently or partnering with a logistics company. Go for the latter if you are seeking competitive pricing options.

Final Thoughts

Deciding on suitable products to sell on Amazon is easily achievable with a robust business plan and initial investment. By considering the recommendations outlined in the article you can create a base for initiating your potentially successful private-label brand.

FAQs

What does an Amazon FBA do?

Fulfillment by Amazon (FBA) is a system wherein you can store your items in Amazon’s warehouses, and Amazon handles the shipping and delivery after the purchase has been made. 

Is it possible to start with Amazon FBA without paying?

Yes, you can start utilizing Amazon FBA for free. You just need to fill out some information and make a free account. The next step is to list the products and select from a vast range of items available.

Is it difficult to sell on Amazon?

It is simple to create an account on Amazon and fill in a form with price, quantity, and other information. The tricky part lies in accurately listing the products in your store.

How does FBM work?

FBM is the system where the seller lists the products on Amazon but the shipping is managed independently or by a third-party logistics company.