There are three ways people source and sell on Amazon.
They my source their products from foreign countries like China, use retail
arbitrage techniques or produce the product themselves.
What
is Retail Arbitrage?
Retail arbitrage is process whereby people find
under priced items in stores and resell on sites like Amazon. This technique is
not covered in the strategy we wish to explain. However many business people have
found success using this technique.
Sourcing
Product from Foreign Countries
To build a solid business you need to source products
from foreign countries. The top destination today is China because of their
cheap goods.
You need to find products that are cheap and private label.
You then sell the product on Amazon. Many eCommerce websites use this technique
to build six figure companies.
Your basic process of Amazon FBA is finding supplier and branding
the product. The next step is shipping to `Amazon Warehouse and
selling the product. The value chain is finding supplier in China, ship product
and sell.
How
to Select a Product
The products you choose will make or break the business. This
is because product choice is the most important aspect of the business.
The product should
be profitable, high quality and have a good price. Requirements for finding
profitable items are lightweight, no brand name within a nice category.
The weight requirement should be less than 3 pounds and
the item should be durable. Look for items with average product price $10 to
$50.
Look for similar products that have high seller rank in
main category. Find products with less than 30 reviews, 25% less sales price
and products with keywords searched over 150,000.
Make sure the product is easily sourced especially from
China. Look for products that encourage recurrent sales, multiple product keywords
and ability to expand brand name. A good product also has year round demand.
- Profitable
- high quality
- have a good price
- lightweight price
- no brand name
- similar products that have high seller rank
- products with less than 30 reviews
- products with keywords searched over 150,000
- easily sourced products
- product that encourage recurrent sales
- multiple product keywords
- ability to expand brand name
- year round demand
Lightweight Products
The reason you buy lightweight products is shipping cost.
Make sure the item is less than 5 pounds and verify from supplier. Amazon
charges per pound with an extra charge of $0.39 for every pound above 2 pounds.
Product
Pricing
The average product price you choose should not range $10
- $45. You could order the product in bulk from China at $5 per product and sell
for $40.
The cheaper the product the higher your profit margin and
the lower your bulk purchase order. Another reason cheaper products are better
is because they a perfect for impulse purchases. Make sure the item can be
produced with 23% less sales.
Best
Seller Ranking
The best seller rank shows products that attract huge
sales. If you can find a similar product with lower prices you stand a chance
to make profit.
You can also look for product with no brand name within
product category. This strategy is good because you eliminate the competition
and add your own branded product. People prefer buying branded products better
than unbranded products.
Find
a Durable Item
You don’t want to ship items that crack or break. Find a
durable and rugged item that is lightweight and easily sourced from China. Good
items are simple, no electronic parts or moving parts.
Find
Products with Less than 50 Reviews
You need to eliminate the competition and dominate your
category. Products with less than 50 reviews are easy to dominate. Find products
with less than 4 for each category.
How
to Optimize Your Product
To optimize your product you need to provide as much
relevant information. Be descriptive, use good bullet points and sell quality
items. Don’t forget selling quality products and add multiple product images.
- Be descriptive
- use good bullet points
- sell quality items
- sell quality products
- multiple product images
Buy
from China
You can find quality products in China. Go to websites
like Alibaba and discover many merchants. Find top 3 product keywords that have
over 100,000 searches on google.
Make sure the product sell year round with an ability to
expand brand identity. It is important that the product you choose has
recurrent sales.
How to Launch FBA Business
How to Launch FBA Business
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