Product selection strategy for new Amazon sellers: key steps to avoid risks and improve success rate

For new Amazon sellers, product selection is a crucial task. Not only must the market demand and competition level of the product be taken into consideration, but potential risk points must also be avoided. Here are some practical suggestions to help sellers make better product selections.

1. Avoid choosing sensitive and high-risk products

Novice sellers should avoid choosing products that may cause legal disputes or make transportation difficult, such as liquid and powdery items, products with magnets or electricity, and food or medicines containing sensitive ingredients. These goods often require special transportation conditions, which increases the difficulty and cost of delivery.

2. Be careful with products that require classified review

Some categories on the Amazon platform have restrictions on third-party sellers, especially those related to health and safety products, such as baby products, car accessories, etc. Before choosing this type of product, be sure to confirm whether it complies with Amazon’s regulations and prepare corresponding review materials.

3. Pay attention to market competition

When choosing a product, you need to evaluate its level of market competition. Market saturation can be judged by looking at data such as the number of similar products, the proportion of new products, and the proportion of using FBA services. An overly competitive market makes it difficult for new entrants to establish themselves.

4. Pay attention to product needs

Market demand is one of the key factors that determine the success of a product. If the market demand for a product is small, even if there is not much competition, it may lead to poor sales. Therefore, when selecting products, priority should be given to those products with stable demand.

5. Use your own resources

If the seller has expertise in a factory or a specific field, you can choose a category that you are familiar with or interested in. This not only helps reduce production costs, but also makes it easier to control product quality.

6. Analyze competitors

Through the analysis of competing products, you can understand the advantages and disadvantages of similar products on the market, so as to formulate more targeted marketing strategies. Recording competitor information, such as their rankings, reviews, etc., can help sellers better position their products.

7. Test money to verify market reaction

Don’t purchase large quantities at once. You can test the market reaction in a small amount first and adjust subsequent plans based on the results. In this way, even if a certain product performs poorly, the loss can be stopped in time.

8. Choose products with low unit price and light weight

For novices with limited funds, it is a safer choice to start with products that have a lower unit price and are easy to transport. This can reduce initial financial pressure and reduce losses caused by slow sales.

9. Avoid popular markets

While hot markets have huge potential, fierce competition can be a hindrance for newcomers. Instead, you may be better able to gain a foothold by looking for areas that are relatively unpopular but have stable demand.

10. Do not infringe

At all times, make sure that the goods you sell do not infringe the copyrights or patents of others. Unauthorized use of another person’s brand name, trademark, or image can lead to legal issues.

11. Refined operation

Individual sellers should focus on refined management of products and gradually accumulate experience, rather than blindly pursue economies of scale. Reasonably allocate funds to ensure cash flow flexibility to cope with various emergencies.

Through the above suggestions, I hope to help novice sellers on Amazon avoid detours in the product selection process and improve the success rate of opening a store. Remember, successful product selection requires patience and care, as well as continuous learning and practice.