How To Sell On Amazon – AMZ One Step

How To Find A Profitable Product To Sell On Amazon

Posted on April 27, 2021 by adminoo

If you’re thinking about becoming an Amazon seller but don’t know what you want to sell yet, you’ve come to the right place.

It doesn’t matter if you’re selling vegan cat food or healing chakra stones. If there is a big enough niche that you can enter and disrupt, there is an opportunity.

In this blog, we’ll look at how you can find a profitable product to sell on Amazon by looking at product types, differentiation, pricing, shipping, reviews, and sourcing. You can utilize research tools to gain perspective on all of these categories, and reading this blog might also help.

Table of Contents

Also Read:- How to find a profitable product to sell on Amazon

Before we start

By reading this blog, you’re already on the right track. You’re doing your research and trying to figure out the best way to find a product to sell on Amazon.

Although profitability is the most important word in this blog, I should have mentioned that research is the second most important word. Because ultimately, profit comes as a result of research.

So where do we start with our research?

First thing’s first, go to either Helium 10 or Jungle Scout and subscribe to their service. I won’t detail a ton of the pros and cons of the services but pick one of the two at your discretion. Yes, I know, you must research even the research tools themselves. These product research tools are the premier services in the Amazon seller space, and I guarantee that a majority of sellers use one of the two.

They both provide information that will be critical to your success, such as:

Finding existing profitable products that will allow you to find a niche projected to do well.
Showing you existing products’ reviews, best seller rank, daily sales, monthly sales, and more.
You can also find high-ranking keywords in a niche and see what other keywords existing products are using.

These are just broad strokes when referring to what these tools can do. They are capable of much, much more, but you will just have to go to each site to see which fits your needs best.

Now that you have your product research tools let’s start looking for a product.

Ideally, you’ll want to look for a low supply and high demand niche. That is easier said than done, but it’s best to find a niche where products sell at least 10 units per day. Any lower in daily product sales and there is virtually no profit to be made.

Also Read:- AMZ One Step Vs Jungle Market – The Best Marketplace for Amazon Sellers

Product Types

For your first product, it is generally best to stick to ones that are easy to manufacture and made from cheap materials. Go for plastic or rubber, essentially products that won’t break in shipment.

I advise you to stay away from electronics and glass. The reason being is that these types of products are notorious for being broken in shipment, which leads to a lot of returns. A high return rate can lead to extreme financial burdens and can be hard to navigate for first-time sellers. phentermine online doctor texas https://waldofleamarket.com/

Product Differentiation

Now that you understand how to find a niche and what type of products are ideal, maybe you have a type of product in mind. But how are you going to differentiate yourself?

You can’t just enter the market with the same product; slap your own logo on there and call it a day. No, you need a product and listing that stands out amongst the other listings. You need a product that shines and is a guiding light for all consumers to follow.

So how can you improve the product even in the slightest?

Use different designs and colors.
Have your product solve an issue better than existing products.
Use different or higher quality material.
You could include two products in one package.
Offer a higher level of customizability.

That being said, you don’t have to reinvent the wheel. If the product is so different, people won’t even know to search for it.

Also Read:- Is it a good idea to start selling on Amazon in 2021?

Pricing

When choosing a product, it’s a good idea to look for one that you can sell for around $15-$50 USD.

The reason being is if you are under $15, then by the time you pay for manufacturing, shipping, and Amazon FBA fees, you’ll be lucky to break even.

Now, if your product is priced at over $50, you have passed the “impulse buy threshold”. What I mean by that is people will think twice before buying your product. The average person will not buy a product that is over 50 dollars on a whim. The chances of the potential customer hitting the “Buy Now“ button is lowered, and that person might even go back to check out competitors for a second time.

Of course, you can operate outside of the $15-$50 range but proceed with caution. It may be more difficult for first-time sellers, so I’d advise you to stay within that range.

Shipping

Generally, you want to choose an item that is small and lightweight. As you might expect, the more weight and the larger a product is, the more shipping costs you will incur. Shipping can be done in one of two ways.

The first is via ocean shipping. This is the cheaper and the more widely used of the two options, but it can be very slow, so you need to plan out your inventory carefully.

The second option is air shipping, where your inventory is brought over on a plane. Usually, the merchandise can reach the Amazon FBA Fulfillment center much quicker than ocean shipping. The downside to this option is it is usually only cost-effective for small and lightweight inventory; otherwise, it’s generally better to go with ocean shipping.

Also Read:- How To Sell On Amazon FBA (A Step-by-Step Guide for Beginners)

Reviews

If you didn’t already know, reviews are a massive component of selling on Amazon. The top sellers within a category, usually Amazon’s choice, will have several hundred if not thousands of reviews.

Realistically you won’t be competing with those products right away. Start with analyzing the products that have 100-200 reviews. Those are the products you will be competing with once you enter the space.

Once you have 50+ reviews, continue to bid on keywords so that you can surpass the 100-200 review products within the space.

Sourcing

You can source your product from any number of places, but I’ll just quickly mention a very commonly used source. Alibaba is essentially the number one place people go to find a product they can sell.

The appeal is that the work of developing a product is done for you instead of you having to go to a manufacturer with an idea and have them design and develop your product.

Again sourcing is a process that you will have to research in more detail.

Also Read:- 3D Rendering vs Product Photography & Which One Is A Better Option For Amazon Sellers?

Other things to consider

The US, UK, and Germany are the three biggest Amazon markets in the world. You’ll likely want to target one of these places, if not all three, when deciding where to sell your product. You must ensure that your product will appeal to an audience from the market you intend to target. For example, hockey sticks may sell really well in Canada but in Mexico…not so much.

It’s advisable to avoid any seasonal products for first-time Amazon sellers as they can come with a number of different complications. Inventory management can quickly become a nightmare.

For example, if you’re planning on selling a Christmas product, but the inventory doesn’t arrive until December.26th, then you might find your inventory sitting there for 11 months.

Basically, this is a high-risk, high-reward niche that you shouldn’t touch.

Conclusion

The simple takeaway from this blog is that product research is necessary to find a profitable product. Of course, I can’t give an Amazon masterclass within one blog, but I can provide some tips. Numerous Amazon FBA sellers start out researching different aspects of Amazon on YouTube, but there is a plethora of information on other sites as well.

Starting a business always comes with risk, but product research can help to turn that blind risk into calculated risk.

If you would like to get started with Helium 10 we have some Helium 10 discount codes for you. Use the code AMZONESTEP50 to get 50% off your first month OR use code AMZONESTEP10 to get a 10% off forever discount!

I wish you the best in finding that profitable product. If you would like to stay updated on helpful articles for Amazon sellers, connect with me on LinkedIn or follow me on Twitter @nolanswriting

Basics – Before You Start Selling on Amazon

Posted on April 8, 2019 by adminoo

Before setting up your own Amazon store, it’s worth taking the time to review the basics of selling things on Amazon. Even if you’re familiar with Amazon as a shopper, the way it works for sellers is quite different. Take a quick peek behind the curtain and learn about the most valuable listing positions on Amazon, how to get your product shipped out of Amazon’s warehouses, and some costly pitfalls to avoid.

1. What is the Buy Box, and how does Amazon decide who gets it?

When browsing on Amazon, customers will navigate to a product’s main page and click on the “offers” links below the product description (as indicated by the red circle on the screenshot below) to see a list of available sellers.

However, Amazon also gives merchants the ability to compete for the coveted “Buy Box” – the CTA button in that familiar shade of yellow. $56 billion of Amazon’s and$64 billion in sales are made via the Buy Box – that’s 90% of total sales volume, so it’s imperative for any aspiring Amazon merchant to understand what the buy box is and how it works.

This is the Buy Box, which drives 90% of sales.

The Buy Box is the box on a product detail page where customers can begin the purchasing process by adding items to their shopping carts. Rather than reviewing a list of available merchants, the Buy Box allows customers to quickly purchase a product from the Featured Seller – the business Amazon has chosen to receive the bulk of sales.

Because a key feature of the Amazon platform is that multiple sellers can offer the same product, becoming the featured seller who wins the Buy Box is very difficult. In fact, it’s pretty unrealistic to think that your site is ever going to get ranked high enough to become the featured seller. (Don’t worry – there are plenty of other ways for small businesses to make money on Amazon even if you can’t get a Buy Box. Just keep reading this article!)

In order to be eligible for the buy box, you must meet the following four criteria:

Make sure you have a Professional Seller Account.
Only Professional Plan sellers are eligible for the Buy Box, so if you want to make money you’ve got to spend money – in this case, about $40 a month. Click here for more information about Amazon’s selling plans and prices.
Know the difference between the Buy Box and the Buy Used Box.

There are separate Buy Boxes for new and used products. Used products are not eligible to be featured in the Buy Box, and new products are not eligible to be featured in the Buy Used Box.

The Buy Box vs. the Used Buy Box.

If you’re selling used products on Amazon, make sure to factor the Buy Used Box into your strategy. The overall sales volume of the Buy Used Box doesn’t match that of the Buy Box, but lower competition can make it much easier for small merchants to obtain valuable product positioning.

Make sure your item is in stock.
If your item is out of stock, you will immediately lose your Buy Box spot to another seller who DOES have that item in stock. If you ever get a Buy Box spot, make sure to ensure that you’ve always got an adequate supply. While you can get your Buy Box spot back after you’ve restocked your inventory, it’s never 100% certain. Plus, the loss of sales due to the loss of a Buy Box is punishment enough, so make sure supply meets demand!
Check your Buy Box eligibility within your Amazon Seller Central account.
Even if you’ve met all of the requirements above, you still must be an Amazon merchant with at least 2 to 6 months of sales history as well as a high level of sales performance. (Sorry – we did warn you that the Buy Box is hard to get!)

Your eligibility information is shown in your Amazon Seller Central account. To view it, follow these steps:

Within Amazon Celler Central, click the Inventory tab and navigate to Manage Inventory
Look for a field labelled “Buy Box Eligible” within the Column Display section
Select “Show When Available” from the drop-down menu to sort products by which are Buy Box eligible. If you see a “Yes” within the Buy Box Eligible field for a product, you are eligible to win the Buy Box for that product.

2. How does Amazon determine the order of the Merchant Offers List?

Even if you never win the Boy Box listing, you can still make money selling on Amazon by selling through the Merchant Offers List. Many of the things that Amazon values fall in line with e-commerce best practices, so it’s in your best interest to be doing these things anyway.

A number of factors affect where a merchant appears in the Offers List, including:

Competitive pricing. This includes not only the product cost but shipping costs as well. Many shoppers expect to see low prices while browsing Amazon, so be prepared to price competitively to beat the competition.
Competing offers. Generally, the more sellers there are, the harder it is to climb to the top. Finding products with fewer competing merchants can make it easier to get your product featured in competitive spots – maybe even the Buy Box. Being the first to pick up on trends can mean that you find popular products before they’re popular, and set up history as a high-performing seller before the market is oversaturated with competitors.
How much history the merchant has on Amazon as a seller. Merchants who have long, positive selling histories with Amazon have better chances of obtaining one of the top spots. Making sure that you address negative reviews and other customer service issues quickly and effectively are critical to ensuring that you maintain a positive sales history – too many unhappy customers and you’ll be exiled to the bottom of the merchant list.
How many Seller reviews the merchant has on Amazon. Selling on Amazon is all about the reviews. Reviews have a huge impact on driving sales, and can really end up making or breaking your business. Focus on encouraging buyers to leave reviews for your products, and make sure to address negative reviews quickly and effectively.

As a general rule of thumb, the most effective solution is to ensure that any transactions you receive through Amazon run as smoothly as possible. That means delivering your product in a timely manner and communicating with your customers along the way. However, if you’re looking to break into the market a little quicker, here are two shortcuts that can help:

Start by selling a low-competition item to boost your seller ranking. This will increase the probability that the offer will show higher for more competitive products. When selling low-competition items, look for products that have few reviews and focus on becoming the seller with the most positive reviews for that product. Building up the total number of reviews on your Amazon Seller account will increase your legitimacy as a seller, and will help you break into higher-competition niches.
Try offering a very competitive price on a popular product. This draws in bargain shoppers and can increase your seller ranking. You can check out Amazon’s “Most Wished For” list to see the most popular items by industry if you need some inspiration.

3. What is Fulfillment by Amazon (FBA)?

Fulfilment by Amazon is a program where you send your merchandise to one of the many Amazon fulfilment centres to be stocked; then customers buy products from you, and Amazon ships them. This sort of arrangement allows you to focus on other aspects of running your business while Amazon handles many facets of shipping and customer service.

Other benefits include extending the reach of your products to Amazon Prime members and gaining an extra push towards winning the Buy Box, even if your products have a bit of a higher price. With Volusion, merchants have the ability to set up different shipping options including drop-shipping, which allows flexibility to try using FBA. You can learn more about Fulfillment by Amazon.

4. What types of merchants tend to benefit the most from selling products on Amazon?

Three kinds of merchants tend to perform particularly well on Amazon:

Merchants selling unique-to-them products. Companies who produce their own products, such as a company that designs its jewellery. Since their products are unique, they face less competition from other merchants selling identical items and have more flexibility over their prices.
Merchants who sell hobby or niche products. Amazon generally won’t start fulfilling or carrying hobby or niche products, so there’s less of a risk you’d have to compete with Amazon itself.
Merchants selling refurbished or used products. Amazon has a huge market for these products, as they attract shoppers whose main concern is price and don’t mind waiting on shipping. It is worth noting, however, that used products cannot win the regular Buy Box spot – only the Used Buy Box, which drives fewer sales.

That said, the benefit of owning your store’s URL and fully branded website cannot be overstated; this gives an extra level of credibility and authority, and visitors are more likely to remember you versus someone else. Many merchants who achieve popularity on Amazon still find it essential to have control over their own e-commerce website and branding. This allows them to achieve a fully independent store presence and market to large audiences outside of Amazon through other marketing channels.

5. Why should I associate one of my products with an Amazon product that’s already listed?

Products are only allowed to be listed once in the Amazon catalogue, so creating a second product detail page for an existing product will result in your listing being removed. By matching your product to the product detail page that already exists, your offer has a chance to be seen.

6. Why can’t I use certain shipping methods at first?

Amazon doesn’t allow new merchants to offer certain shipping methods right off the bat, such as two-day shipping. These shipping methods have to be earned by establishing a history of reliable shipping at the slower shipping speeds. Offering your products through FBA is a way to bypass this, as FBA products are automatically eligible for Prime Free Two-Day Shipping.

7. Why aren’t I being compensated correctly for shipping?

Amazon determines how much they think it should cost to ship a product based on the merchant’s origin, the customer’s address and the given weight of the product. However, oftentimes the amount of money that Amazon reimburses merchants for shipping won’t match the actual shipping cost. Making sure that your item weight and dimensions are listed correctly will help make these shipping estimates as accurate as possible. However, it may still be necessary to factor this into your pricing decisions – sometimes, you’ll need to increase the price of a product to offset Amazon’s too-low pricing estimates. If you’re having problems making a profit after shipping costs, you’re probably pricing too cheaply.

8. How can I increase the number of reviews on my Seller account?

When selling on Amazon, reviews should be one of your biggest priorities. Shoppers look at both the quality and quantity of reviews, so it’s important to encourage buyers to leave a good review for your product (just don’t get too pushy!) Please note that merchants are forbidden from soliciting or paying for Seller Account reviews. Any sellers who engage in these practices risk having their accounts suspended. Your best bet is to give customers a great shopping experience (including aspects like product price, clear and informative customer communication and shipping reliability) so they want to vouch for you on their own.

9. Are there any policies I should look over before I start selling on Amazon?

Here are some policies you may want to review before selling on Amazon:

Before you start selling on Amazon, the best advice we have is to know your business and know what you’re getting into. A new Amazon integration means a lot of new opportunities. By doing your homework and focusing on your business’ needs, you’ll be taking your online success to the next level in no time. If you’re interested in checking out what we can offer with Amazon integration, start your free 30 days trial today!

6 Steps to Selling Services on Amazon

Posted on March 26, 2019 by adminoo

Think of Amazon Home Services, as an Uber for B2C services: Through AHS, Amazon customers can easily source a variety of services by connecting to those service providers in their neighborhoods. Curious about becoming an Amazon Service Provider?

Follow these six steps to Selling Services on Amazon; apply to the program, set up your account, and start connecting with prospective clients in your area.

1. Apply for Amazon Home Services

Before you register your professional services on AHS and start selling services on Amazon, you’ll need to complete an application which is called the eligibility criteria. you’ll need to meet the Amazon’s basic requirements, which include holding General Liability insurance and providing the appropriate licensing for your trade.

Then, Amazon will complete a business background check to make sure your company’s information is copacetic. Any employees participating in in-home services will need to pass individual background checks, too.

If your application is accepted, you’ll receive an email from Amazon with an activation code and instructions for setting up your Amazon Home Service profile.

2. Set Up Your Amazon Home Services Profile

Once you’ve been accepted as an Amazon Service Provider, you’ll have to create your storefront , which is the profile page where customers can learn more about your company. You can write an introduction to your business, specify your service area by zip code, collect customer reviews, and more.

3. Create Your Packages

Amazon has created set pre-packages for various service categories based on the most common service requests they see from customers (most of which are product assembly and installation).

Once you’ve signed up as a seller, you can choose which of these services to offer, set your prices, and specify the exact zip codes in which you’ll operate. Customers can order these packages on Amazon.com at any time. You’ll receive an email notification when your new order is queued up.

4. Use Seller Central

Through the Amazon Seller Central portal, you can schedule services online, set up automated communications with customers, manage your packages, prices, and payments, and much more.

5. Create Custom Services

Occasionally, a customer in your neighborhood may be interested in a service that’s in your wheelhouse but doesn’t exactly fit within one of your pre-packaged options. In that case, Amazon offers custom service requests.

When a client makes a customer service request, you’ll receive their request via email and have 24 hours to respond with a bid. If the customer accepts the bid, you’ll proceed with the order as usual, and Amazon will handle all scheduling, billing, and payment processing.

6. Receive Payment

Amazon Payments automatically handles the payment for services sold through Amazon Home Services, so you don’t have to deal with invoicing or collecting from your customers. Once you’ve completed a job, Amazon simply deposits your earnings directly into your bank account. Also be aware that Amazon collects a percentage of your service price, which they’ll deduct from your bank account every time they pay you.

Amazon Home Services Fees

One of the greatest benefits of selling services on Amazon is that you don’t pay upfront for leads or advertising. Fees are calculated as a percentage of sales, so Amazon only gets paid when you do.

For any service that Amazon sells on your behalf, the company will collect the following fees:

Transaction Fee: 5% of each transaction—includes the costs of invoicing, payment processing, and fraud protection.
Platform Fee: between 10% and 20% of each transaction—covers marketing and advertising costs, seller tools, and customer service.

The total cost of Amazon Home Services fees depends on the price of your service, and the type of service you’re providing:

Pre-Packaged Services: Amazon collects 20% for the portion of the service price up to $1,000 (5% Transaction fee and 15% Service Platform fee), and 15% for the portion of the service price greater than $1,000 (5% Transaction fee and 10% Service Platform fee).
Custom Services: Fees for Custom Services amount to 15% for the portion of the service price up to $1,000 (5% Transaction fee and 10% Service Platform fee), and 10% for the portion of the service price greater than $1,000 (5% Transaction fee and 5% Service Platform fee).
Recurring Services: If a customer books your company for a recurring service (such as weekly fitness training sessions or monthly carpet cleaning services), Amazon collects 10% of service price for completed orders over $1,000 (5% Transaction fee and 5% Service Platform fee).

As you can see, Amazon collects all transaction and platform fees as a percentage of the service price, rather than a flat rate. That percentage excludes the taxes collected through Amazon tax collection services.

I have covered almost every important detail regarding the ways to selling services on Amazon.