Amazon FBA Product Research October 2019

If you are wondering what products to sell on Amazon FBA and what the best product research tool you should use, you will have a much better understanding by the end of this article!  There are some key tips that you should know when finding a profitable product to sell on Amazon.

Which Product Should You Sell On Amazon?
 How To Find A Good Product To Sell

The first thing that you should know is that there are over 197 million active users on Amazon every month!  This is more than the population of Russia!

Amazon is the leader of online sales and its share of the U.S. e-commerce market is 49%.  Here is a list of Amazon’s top-selling categories to get you an idea of what niche you should be in:

  • Electronics
  • Toys and games
  • Books
  • Video games
  • Clothing and shoe computers
  • Jewelry
  • Camera and photo

Electronics

Electronics You Can Sell On Amazon

This category is a great option to choose when deciding on a product to sell because there are subcategories within the electronics category which gives you a wider range of options.  This includes musical instruments, portable audio, office electronics, car electronics, computers, audio and home theater, tv and video, cell phones, and wearable technology.

This category has continued to grow every year since 2015. Nearly 90% of all growth in US consumer electronics sales was possible because of Amazon. In 2016, $4.7 billion worth of consumer electronic products were sold on Amazon.

Electronic sales in the U.S. and Canada calculated to over $264.17 billion.  In 2017, consumer electronics sales grew by almost 20%. This is more than double the growth of Best Buy. It is expected that the global consumer electronics market will have a 6% growth rate each year and reach 1,787 billion by 2024.

Camera & Photo

Cameras that can be sold on Amazon.

This category has a wide range of options including selfie ring lights, disposable cameras, film cameras, and even pens that contain cameras.  If you decide to sell under this category, you could even sell an old electronic in a new way.

Video Games

You can sell video games and consoles under the Video Games Category.

This category includes video games, consoles, and gift cards.

Clothing, Jewelry & Shoes

Clothing, Jewelry, & Shoes can be sold on Amazon.

If you choose to sell in this niche, it is important to come up with an idea for a new product because this category tends to be crowded.  There is a lot of possibility in this niche as long as you come up with new designs. It is important to create unique items in the marketplace to attract customers.

Books

You can sell books on Amazon or self publish a book easily.

This category is also filled with a lot of opportunities and it is very easy to self publish a book on Amazon.

Toys & Games

The Toys & Games category includes board games as well as toys.

Popular products in this niche include Connect 4, Play-Doh, Jenga, and Cards Against Humanity which is currently ranked at #9 on Amazon.  The more toys and games sell online, the retail store’s performance tends to decrease. This is one of the reasons Toys R Us has closed down so many stores.

Although these are very popular niches to sell a product in, there are 20 different categories available on Amazon that you can choose from.

You can view Amazon’s bestseller list for different categories.

The most important aspect of your FBA strategy is to figure out what to sell on Amazon.  It is best to find a product from China because production costs are low and this allows you to make a higher profit once you sell the product.  When deciding on a product to sell, it is important that you find a product that you can private label.

If you choose the right product, you have the opportunity of making a profit of up to $60K per month or even more.

You may find a high-quality product to sell but it all comes down to whether or not people will purchase the product from you.

To find a product to sell on Amazon FBA, it is very important to conduct product research.  This will help you to determine the profitability of your product.

Product Research For Amazon FBA

A good Amazon FBA product research tool to help you find a product that has low competition but high demand is Jungle Scout.  Jungle Scout is available as an app or a chrome extension. The browser extension is more ideal to use because it gives you immediate access to numbers when you are conducting product research.

If you do not yet have this amazing product research tool, you can download it through this link:

Jungle Scout helps you avoid a category that is overly saturated.  Its sales estimator gives you guidance on how well items are selling on Amazon.  Seeing a high amount of sales for a specific product does not mean that it will be an easy product to sell.  A category with hundreds or thousands of competitors is a category to stay away from. This is because there will be too much competition and it will be difficult to sell your product.

The research tool Jungle Scout comes in a Lite and Pro version.  Both versions offer a one-time fee and lifetime access after completing the payment.  The Lite version costs $97 and has the following features:

  • Category and seller ranking
  • Rating and review tracking
  • Monthly sales and revenue

The Pro version costs $197.  It is the more popular option and contains the following features:

  • Category and seller ranking
  • Rating and review tracking
  • Monthly sales and revenue
  • Product profit calculator
  • FBA Fee estimator
  • Product opportunity score
  • Web app integration
Jungle Scout Chrome Extension

The web app of Jungle Scout is available as an annual or monthly subscription.  There are three different plans you can choose from:

Entrepreneur: $39 per month

  • 1 user
  • Keyword scout
  • Product tracker
  • Product database

Track up to 40 products

Growing Business: $69 per month

  • 3 users
  • Keyword scout
  • Product tracker
  • Product database
  • Track up to 80 products
  • Niche hunter

High Volume Seller: $99 per month

  • 6 users
  • Keyword scout
  • Product tracker
  • Product database
  • Track up to 150 products
  • Niche hunter

Whichever plan you decide to choose, Jungle Scout is the best option to conduct product research for your Amazon FBA store.

The Niche Hunter feature on Jungle Scout allows you to see the average prices, the average number of sales, and the categories your considering.

With the average price feature, the keyword you search on Amazon will show you the average price of the top 10 listings that show up in that search.

After seeing the average price of the top 10 listings, Jungle Scout will show you how many units have been sold in the last 30 days.

A well-optimized Amazon product page includes the keywords in the title, the relevance, length of the description, and the number of images used.

Listing quality score is a feature in which Jungle Scout calculates the optimization of the top 10 listings.

Your quality score should be 7 or above.

If you have a listing quality score of 7 or above, this is considered very good and a high-quality listing.  A listing quality score of 3 or lower represents a very poor listing quality.

Opportunity Score- this is measured by products that have only a few reviews, poor listing quality, but high demand.

A high opportunity score means there is a great opportunity to sell.

A score of 1 tells you that you should find a new product to sell and a score of 10 means that there is a great opportunity to sell.

A high opportunity score is a good sign that you have a high chance of coming in and dominating that niche.

A low opportunity score indicates that competitors are doing well selling the specific products and that the demand is fairly low.

KeyWords

Keyword Search Tool helps with SEO.

With the keywords tool, you input a seed keyword which is a base keyword for SEO and it will show you related keywords.

A field within the keywords tab is exact match search volume which shows the number of times a person searches for the keyword within a 30 day period.

If you are assessing multiple product ideas you can sort through them and see related keywords by creating a list of words rather than working with one big of a list.

Product Database- This allows you to conduct a filtered search through the entire database of Amazon products.

You can narrow down your search criteria by units per month, and reviews between 4 and 5 stars.

Amazon Product Database Research Tool on Jungle Scout.

Product Tracker- This is a great way to track your product’s performance over time.  Within the app, you can create groups. For example, if you were selling a smoothie blender, you can add several different blenders to a single group and measure how well they perform as a group and also how they perform individually.

You can view your PPC (pay-per-link) on Jungle Scout.

You will also see a field that shows you your PPC (pay-per-link) costs if you were to run sponsored ads on Amazon.

Overall, Jungle Scout is a great tool when scouting out your competition, increasing sales, rankings, and revenue.  It helps you to save yourself a lot of money and stress because of all the data that it gives you.

A good sign that the market isn’t willing to pay the added expense is if you were planning to retail a product for $60 but the average price in the top 10 is $20.

It may seem like a great idea to come up with a unique product of your own, but the most important thing to know is that people are buying your product or something similar to it on Amazon.

If you should not necessarily come out with a unique product, what is the best way to stand out from your competitors?

Preferably, your product should have a feature that is better or different than what your competitors have to offer.

Selling a product that offers no real value or difference from your competitors is not a good strategy.

Selling a product that solves a problem in a person’s everyday life is key.

When you are just starting out, it is important to price your product between $10 and $100.

If your product is over $100, it is no longer in the impulse buy category.

If you are buying a product that is $25 or less, you are more likely to just buy it without doing a lot of research on the product first.  As long as a product has a low price point and it addresses the person’s needs, they are likely to buy the product immediately. If an item is more than $100, consumers will be more likely to read more reviews, look for videos about the product, and ask another person’s opinion before making a purchase.  Selling a high priced item may seem like a good idea and some sellers do well with higher-priced items…

But… you should put yourself in the place of the consumer.

Giveaways: 

When you finally decide on a product, it can be difficult to launch it.  Before you get a good amount of sales, you will need some reviews first. This is because it can be difficult to get sales without reviews.  An example of a giveaway is by selling your product at a discounted price or using a service to distribute coupons to attract more customers.

You can boost your listing in Amazon’s rankings by using a special URL with your giveaway.

Junge Scout can show you the recommended giveaway which is the number of units you would have to giveaway over 1-2 weeks so that you can reach the top 3 spots in Amazon for that search term.

The performance of your product is based on market demand and you can use Amazon’s bestsellers rank when choosing a product to sell.  This rank is updated hourly and calculated based on the sales of a product. The best selling product in a category will have a best-seller rank of 1 and this tells you that there is a demand for this product.

By finding products that are similar to the ones found at the top of the bestsellers rank, you can attract the target market and encourage them to buy from you.

It is recommended to sell a product that would fit inside of a shoebox because fulfillment and shipping costs are lower compared to selling a large item.  

This is not to say that you should sell a large item, you may spend more to buy inventory but the payoff can end up being much more.

After finding your ideal item, you have to make sure it fits all other criteria including demand, competition, and sufficient margin.

You also want to make sure that the product you are going to sell is a product that you can private label at low costs.

Checking Alibaba can help you find cheap supplies and help give you ideas on what product you would like to sell.

After you find a product you like on this website, you should compare the price of the product to the ones sold on Amazon.  It is best to find a product that costs around 75% less than the price it is sold for on Amazon.

If you see the retail price for a product is $20 on Amazon, you should not pay more than $12.50 for that product.

It is important to choose a good product that you can make a good profit from because you have to keep in mind that it is important to have a good profit margin for long term storage fees for keeping items at Amazon’s warehouse, hidden fees, and any other issues you may come across such as customer returns, etc.

What Your Profit Margins Should Look Like

The reason you should price your product 75% more than the purchase price is so that you leave yourself plenty of margin after all hidden costs and fees.

You can find the estimated monthly revenue for each product as well as the Amazon bestseller ranks on Jungle Scout.

The most important tip when figuring out what to sell on Amazon FBA is that the product should not be too complicated.  Your item or idea should be something that can be easily translated to overseas suppliers who have to then translate what you want to sample makers.

If you cannot explain the product to your friend in an easy way that they can understand then this means that a supplier in China will have trouble understanding your product as well.

To avoid this, you can think of ways to modify products that already exist to make it more unique and create short videos and photos that are easy for customers to comprehend.

An example of this is creating a curtain with a custom print on them.

A small modification to a product can make you stand out and also bring in more sales.

Key Takeaways:

Key Takeaways of this article.

The best product to sell is a simple product that provides a solution to everyday problems because a complicated product would require more money and time to find someone to make it.

Choosing a product that you can sell based on trends and seasons is a great way to maximize sales.

Learning about your product and doing a lot of research before selling it, makes it much easier to sell the product to an audience.  Although product research can be time-consuming it will greatly benefit you because it will make it easier to succeed. Being passionate about your product is also helpful.

Choosing a product with a good amount of sales per day and potential add-ons is a great way to ensure a lot of sales in the future.

An example of this would be selling a pair of gym shoes and then branching out to selling gym gear or workout attire.

Find a product that has low competition but high search volume and these competitors should have only a few reviews.  If your competitors do not mention target keywords often, this is a great sign that you have the opportunity to steal their customers!

It may not be easy to bring in sales at the beginning of your Amazon FBA journey, so it is important to choose an amazing product and conduct a lot of research on this product before selling it.

Finding a good product to sell does not have to be a difficult process. Keeping these key tips in mind and using Jungle Scout to conduct product research are some great steps to success when just getting started on Amazon FBA.
If you are ready to start your journey on becoming a successful Amazon FBA seller, you can access the Amazon Method to find a step by step guide to the fastest way to make real income so that you can live life on your terms.

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