We can see the growing effect of technology in every aspect of our lives. Things that we thought were just a product of imagination became a reality. The traditional way of going to a department store and purchasing goods became old-fashioned. Today, most shopping is handled online. The industry of online trading is also called e-commerce industry.By the year 2020, it is expected that retail e-commerce sales will increase to a whopping $4 trillion.
Who would have imagined that a company that started as an online bookstore would become one of the largest online retailers? Amazon did just that and established itself as one of the most valuable retailers in the United States. Under the lead of Jeff Bezos, this company has diversified itself across multiple domains, including manufacturing electronic devices and Cloud Infrastructure Service (IaaS). In the first quarter of 2016, Amazon reported a net income of $513 million.
On the road to becoming one of the largest retailers, Amazon also helped many people across the globe to become successful entrepreneurs through their unwavering quest to build both individual and corporate brands. Most of these people have a strategy comprised of two steps:
· Identifying the best products to sell on Amazon
· Finding these products and buying them wholesale
How to Identify the Best Products to Sell on Amazon?
The first step in the identification of the best products to sell on Amazon is to ask yourself a simple question – what makes a best-selling product? The answer is simple – the higher the demand for the product, the greater number of sales it makes. Best-selling products are the ones that are easy to sell and generate profit from them. Products that are not in demand don’t deserve your attention. Here’s how to filter them out and identify best-selling products.
Browsing Through Amazon Departments
Amazon has various departments that offer an extensive array of goods. Each of these departments has numerous products that can be identified as best-sellers. The website itself can sort them out for you. All you have to do is head to the particular department and select Bestsellers. 'This link will show you all the top-selling products within that category. You will also notice that certain products have a Bestseller’ ranking. This means the customers rated this product with at least 4.5 out of a total of 5 stars. If existing customers are satisfied with the product, the chance that it will get more new customers increases.
Alternative Ways of Finding the Best-selling Products
An alternative way to find best-selling products is to use Google Shopping. Just type in the address of the Google website and choose the shopping section. Once you are there, you will notice various filters such as country, time and so on. You can try different filters and browse through the generated results to find a best-selling product. Make sure to give eBay Pulse a shot, as it can be of great help in searching for the perfect item to sell on Amazon
Other Things to Consider When Choosing a Product
Aside from being among the best products to sell on Amazon, there are other criteria that an item should meet for you to choose it. First of all, you must consider the price of the product. Statistics say that products with the price of up to $50 make more sales than the more expensive items. This is why you should stick to cheaper products at first. Next, consider the weight of the product. Heavier products come with extra fees associated with the shipping, which can decrease your profit. This is why it is a good idea to stick to products that weigh up to 5 pounds. Finally, make sure that your product is not seasonal. In other words, ensure that the demand remains the same throughout the year. For example, scarfs are much more popular during the winter, but there is no demand for them in the summer. But if you offer a non-seasonal product, you will profit from selling them every month.
How to Buy Products Wholesale?
Buying products wholesale is a guarantee that you will get an affordable price. This is why it is a good move to acquire products this way and then sell at a retail price to secure maximum profit. Here are a couple of things you can do:
· Find low-cost versions of already existing products on the websites of Chinese manufacturers, such as Alibaba.com
· Reach out to the manufacturer of the product
You can also use online directories such as Salehoo, or the wholesale handbag directory found at WholesaleQuest.com.
Wholesale directories will provide you with a bunch of information regarding closeout businesses and wholesale suppliers that sell products at a low price.
It might be a good idea to customize the product before you order it. Making an alteration means that your product will be unique and no other product will look like it. The customization can vary from just changing the size or the color of a product or asking the manufacturer to add your brand to it. Feel free to be creative and ask the manufacturer about possible modifications but keep in mind that the price may vary depending on the amount of changes you want to be made.
This is what people are referring to when they talk about private label goods.
You are basically coming up with a name for your own brand, and then marketing your products under your own brand.
You can also make licensing deals with designers through which you can have wholesale merchandise made that will bear their logo and brand.
Many companies, such as Ralph Lauren, Calvin Klein, Disney, and Nike, engage in licensing deals.
For example, you can purchase Disney children's clothing that is being made by a separate company that has a license with Disney to supply kids clothing to retailers.
Once the item fits your standards, have the manufacturer ship the order to your address. Check the items for their quality and possible damages. When you finish with the inspection, ship the items to Amazon’s FBA (Fulfilled by Amazon) service. This is where Amazon takes over, and you don’t have to worry about storing a product anymore. The website will take care of the remaining steps of the process, including packing the product and shipping it to customers. Another thing you need to ensure is that your product post on Amazon looks professional. Make sure that it has a lot of images and useful information on the product that will entice the readers.
You need to be very careful in studying the various fees that you will be charged to sell your merchandise through Amazon, as well as your total costs in procuring and handling your wholesale merchandise.
If you have determined that after all your costs you can still make money on Amazon, then it's time to start selling.
All that is left to do now is wait for the product to sell. If you have made a right choice of selecting a best-selling product, this will happen in no time. Applying the strategy from this article will enable that you sell your products quickly and generate high profit from selling them.