When it comes to finding the best products to sell on Amazon, the market can be a bit of a jungle to navigate as the options out there are nearly endless. It might surprise some that third-party sellers make up over half the sales of Amazon in 2021 so far. Private sellers report earnings anywhere between $26,000 to $810,000 which is an incredibly wide range. For those aiming to end up on the top end of the spectrum, it requires a balance of thorough research and opportune action. Knowing whether or not to invest in a product is often the deciding factor between success and failure. There are a few tried and true methods that can help sellers identify products most likely to succeed in the market, and from there, it’s just a matter of committing the right resources to it.
- See Trends Via Private Label Products
For those looking to build out their brand, private labeling products is a great place to start. The basic concept is to take common items include items like water bottles, phone accessories or clothes, and apply your brand’s logo upon them. This sets them apart from generic counterparts already sold on Amazon and starts to build out your brand’s catalog and niche.The name of the game here is to see what items are about to trend, such as sunglasses in Spring, and have your inventory prepared to meet the demand when it surges. This combined with sourcing from low-cost suppliers gives a seller the chance to capitalize on the current market.As with all sales done via Amazon, one must be mindful of costs and margins. Amazon takes anywhere from six to 20 percent based on product category, and shipping costs need to be factored in as well. These should all be taken into account when deciding on the final retail pricing of a product.
- Dropship Via Print-On-Demand Companies
Print-on-demands function similarly to private labels, but without the worry of purchase minimums as they are done on an at-need basis. The seller outsources both the fulfillment aspect of the sale and is only involved with the digital side of things.It’s less about chasing trends here and more focused on putting unique art on a variety of products. Once you have your art set, then you must connect with an Amazon-approved, print-on-demand company that will help with the printing, storing, and shipping.It’s a low overhead option that once set up requires little upkeep to continue, and is an ideal starting point for those new to selling on Amazon as there is little risk and high potential if a design or product catches on with an audience.
- Research Retail Arbitrage
With retail arbitrage, the idea is to buy products at deep discounts or clearance levels and then resell them at the optimal time. It’s the most basic premise of a trade and operates with beautiful simplicity, you find something for $4 that you know you can sell for $16 on Amazon and do so until the market becomes saturated. What sets it apart from the options above is there’s no branding or attempt to make the product unique in this approach. It’s a barebones strategy without much fluff or room for branding, but it’s without a doubt effective as some have made millions doing exactly this. Retail Arbitrage is all about finding and buying products at the lowest price and then flipping them for profit when their value is at its highest. With all these methods, finding the right supplier is essential as that ultimately will dictate your pricing and availability.
- Identify Reliable Wholesale Suppliers
Finding and maintaining positive relationships with a wholesale supplier is a steady and proven path towards profitability on Amazon. These sources can be found in person at trade shows, but online marketplaces like Worldwide Brands or Salehoo function in the same fashion. Once you find an item that you’d like to sell, then you purchase in bulk to reduce the individual unit cost. Some wholesalers have order minimums you must meet, so working with them requires some faith and investment of funds. It’s essential with these relationships to clearly communicate needs in terms of timeline and quality so you remain compliant with Amazon’s seller criteria. Wholesale pricing usually lands at about 50 percent of what the end retail price will be to keep healthy margins for Amazon sellers.
- Look to Direct-Source From Manufacturers
Direct sourcing products is similar to a wholesale relationship but involves dealing with the actual manufacturer who produces the goods. Cutting out the middle man often leads even lower costs per unit for the seller. Finding the right manufacturer is the first step, you want to deal with someone who has ample experience in creating what you need. Some manufacturers might a small team and others industrial giants, and knowing which one suits your need is important before you commit.
In time you might even be able to customize your direct-sourced products, combining the benefits of print-on-demand or private-label brand power with the low costs of wholesale.
These methods of finding products are proven to work on Amazon, but don’t be afraid to hedge your bets and try multiple methods. It takes time and persistence to break through, but once you do, a healthy stream of income via Amazon can be enjoyed with minimal upkeep.