The product launch process can be quite easy if you follow certain rules with your supplier! But what about those who do not have a supplier. Then you are wondering how to find a product to sell on Amazon?
That’s exactly what we’re going to discuss today, from what makes an Amazon product successful to whether Alibaba suppliers are really worth trusting.
Over a million new sellers join Amazon every year, but less than 10% of them can reach $100,000 in annual sales. Only 1% of Amazon sellers reach $1 million in sales.
Where to start looking for products to sell on Amazon in 2022?
Finding products to sell on Amazon is easy if you understand how to build your search process. Wholesale and bespoke industrial products are what most startups and small businesses think of first. However, these are just two of six very different methods for finding products to sell on Amazon.
Just as important to your success in finding products to sell on Amazon is knowing how to identify profitable selling opportunities on the platform.
But why do we need to analyze the goods before selling??
Finding products to sell for Amazon means that you get a product from a third party and then resell it on Amazon. These third party dealers can be manufacturers, distributors, retailers, drop-shipping agents, or the brands themselves.
So Amazon sellers don’t make their own products? Nope. Well, at least most of them certainly don’t.
What makes a product successful on Amazon??
According to the sources, these are:
- Sale price > $25
- Monthly keyword search volume > 10,000
- Average income > $10,000 per month
- Gross margin > 25%
- Average number of customer reviews < 400
- Healthy year-round demand (non-seasonal item)
- No restrictions on sale
- Eligibility for the FBA
How to find a product to sell on Amazon in 2022?
If you are considering starting a private label business on Amazon, you can find a local supplier or work with an overseas manufacturer and get your inventory.
Everything produced locally has obvious merit.
- No need to worry about the language barrier.
- You can come to the workshop at any time and check what your manufacturer is doing.
- Local suppliers understand the market well.
- Payment can be made without problems.
However, domestic production can be quite expensive. Also, you may not always find a supplier for your product. So let’s take a look at all the ways to find products to sell on Amazon!
Product to sell on Amazon: Lots of ways to find a product!
Some Amazon sellers use only one search method, such as retail arbitrage or private label, but many grow by combining multiple profitable search methods.
1) Use Retail Arbitrage to find products to sell on Amazon.
In retail arbitrage, you buy retail items at a significant discount and resell them on Amazon. It sounds simple, but to do it right – that is, with profit – you need to work hard. Retail arbitrage sellers are absolute pros when it comes to finding discount deals and sales in local stores and matching them with popular sellers on Amazon.
The secret is to know what sells well on Amazon and at what price. You also need to be clear about the cost of selling this item on Amazon.
Amazon seller fees are around 15% of your selling price, and shipping orders can cut your bottom line a lot if you’re not careful.
Luckily, there are tools to help you find great deals.
You should also pay attention to storage and shipping costs if you are using the FBA program.
FBA has its own costs, but if properly managed, the program can be much cheaper and take less time than doing it yourself.
2) Sell handmade items on Amazon.
If you create cool handmade things, then Amazon Handmade is definitely your platform!
Before selling, you must submit a listing to sell, and the requirements are more stringent—in many cases more stringent than on Etsy. In fact, many handmade sellers on Amazon are Etsy sellers looking to expand their reach by tapping into Amazon’s huge audience.
If you are allowed to sell on Handmade, you can list and sell up to 40 items per month without paying for an Amazon Pro Seller account. However, if you exceed 40 sales, you will have to pay a monthly Amazon Pro Seller account fee of $39.95.
Making handmade goods and finding the raw materials you need depends on the products you make, so the trading tools for this search option can vary greatly.
However, Amazon Handmade sellers can use FBA for warehousing, order packing, and shipping. It’s a handy tool to get away from time-consuming tasks and focus on producing higher quality handmade goods (or customized goods)
3) Find wholesale items to sell on Amazon.
The mere resale of goods produced by other companies falls under the wholesale sourcing method. This is a very common way to find cheap items to sell on Amazon, especially for startups who want to explore the profit potential of different product categories.
You can receive goods from wholesale suppliers through wholesale marketplaces such as Alibaba, Thomasnet and others.
In fact, online search is an easy way to get started with wholesale search and launch an efficient e-commerce business.
When you work with wholesalers, you buy items in bulk, often in units called “case packs”, hold your inventory, and ship items as the order comes in. You can store products, order packaging and delivery yourself, or use FBA to complete these tasks.
No matter how you fill orders, you also need a stock and purchasing management system to keep track of your stock levels and ensure that you have enough items in stock to fulfill your orders.
4) Sell direct source products on Amazon.
Direct search can be the most profitable way to find products to sell on Amazon. With direct deliveries, you buy goods directly from the manufacturer.
You can purchase stock products from direct sources, i.e. products that are already manufactured in a factory, at lower unit prices than wholesale prices.
The seller can also order custom merchandise for unique branded items that stand out from the competition.
You can often work with the same supplier if you like the wholesaler’s product line and service. Or just simply order a larger quantity to get a lower unit cost, or work with them to develop your own custom products.
However, just like bulk product sourcing, direct sourcing needs to keep a close eye on product cost, inventory levels, and quantity reorders. In addition, you will have stock on hand, as well as the ability to order packaging and shipping, which you can do yourself or outsource to FBA.
5) Sell your own branded products for sale on Amazon.
An offshoot of direct search is private label. It’s a great way to find products to sell on Amazon under your own brand. Private label suppliers manufacture goods, then label, label or package them with your brand name.
You can find private label products in almost every product category; from personal care and beauty products to kitchen supplies, pet supplies, delicatessen and more.
The process of finding private label products to sell on Amazon is similar to finding wholesalers and direct sellers. Many manufacturers offer a private label option on their stock items.
OK it’s all over now!
What is left for you?
Once you find your products and see that sales are steady (and with a profit that works for your business), you’re ready to invest in your inventory on a regular basis.
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