Amazon seller product selection steps and precautions
When it comes to Amazon product selection, many novice sellers don’t know where to start. In fact, many old sellers have gone through this stage. Although they were confused for a long time at the beginning, after a long time, many sellers have accumulated their own product selection steps. For new Amazon sellers who don’t know how to choose products, today I will share the common product selection steps for sellers.
1. Find inspiration for new products
This refers to how to find new products. Sellers need to be diligent enough and a little sensitive to the market. You can use modules such as Amazon Bestsellers or New Release, you can also use social platforms such as Facebook, YouTube, and Instagram, or you can go to wholesale platforms such as 1688. Sellers can also visit offline exhibitions.
2. Investigate the market performance and potential of the product
When a merchant finds an interesting product and thinks it can do it, he must go to the Amazon platform to conduct market research. Study the market performance of the product, how many sellers are selling it; analyze the good and bad reviews of the product sold, especially the bad reviews; study the market potential of the product, whether it is a red ocean or a blue ocean. During the research process, it is best for merchants to use some data analysis tools and let the data speak instead of just choosing their own feelings.
3. Clarify product cost and cost budget
Good products can make businesses make money, so everyone should calculate the cost of the product and related costs. Including product procurement costs, main logistics costs, FBA distribution costs, etc. In addition, when entering the Amazon sales market for the first time, you need to consider product selection from the perspective of cost savings, and try to choose products weighing no more than 500 grams as test products. Transportation costs represent a large proportion of the entire operation, so when funds are limited, it is recommended to choose lighter products.
4. Find suppliers and discuss cooperation details
After completing the first three steps, if merchants think it can continue, then everyone needs to find a supplier, and many domestic sellers will basically go to the 1688 platform. After finding a supplier, we’d better choose two to three samples, and the cost can’t be saved. Because the gap between online pictures and actual products can be huge, the right choice can only be made after comparison. After confirming the sample, you can discuss cooperation details with the supplier. For example, whether the price can be more favorable, whether there is a tiered price, whether the packaging can be improved, whether the label can be helped, whether the email can be packaged, etc. Different suppliers will have different service attitudes. If a seller can meet a supplier with good products and good services, please cherish it.
5. Improve products and launch new products
After determining the samples and suppliers, we can discuss the improvement details with the suppliers, such as negative comments from buyer feedback, whether the suppliers can improve one by one. In addition, the profit of new products cannot be too low. Sellers on Amazon want to make money. If the price of a product is too low and the profit is too low, then the product has no room for profit, and thus loses the meaning of operation. Nowadays, Amazon’s operating costs remain high. Some PPC ads cost 2 or even 4 US dollars per click. If the seller’s product price is too low and the profit is not high, then in the end the seller will not be able to make a profit. It is a wiser choice to initially sell products in the price range of US$15-35.
In short, when Amazon sellers choose products, they generally need to consider factors such as the weight of the product not being too heavy, trying to exclude sensitive goods, dangerous goods and other categories when selecting products, and the profit of the new products selected not being too low. Each seller can only combine their own Only by making reasonable choices according to the actual situation can we achieve better sales results and profits.