FBA, Fulfillment by Amazon, is a business model that takes care of almost all the eCommerce processes from warehousing, packing, shipping, and so on. Selling on Amazon FBA is largely determined by how in-demand the products are. Therefore, choosing the best products to sell on Amazon FBA is quite essential for the growth of your business. The target of this post is to provide you with a bunch of Amazon FBA tips that are summarized from successful businesses. Keep reading to figure out what to sell on Amazon FBA.
What to sell on Amazon FBA: product criterion
If you are selling on Amazon FBA, what products should you choose? Should you choose different products uniquely for the Amazon FBA platform? What is your competitiveness on Amazon FBA? There is no easy answer to these questions. But we can be 100% sure that if you simply pick a random product to sell, it’s very likely that customers are not interested at all. So, what can we do? The basic idea is to identify your product criterion.
A product with a affordable price is most appropriate. And let me explain why.
What if the price is too low
If the price is too low, your margins are actually very limited. You need to sell a huge volume of products in order to make great profits.
You may be thinking that this is still possible because on Amazon FBA you don’t have to handle the storage, packing, and shipping of each order. But this is not why achieving volume sales could be hard.
On the one hand, if you are just a starter, you may not know how to promote your products significantly to achieve this goal. On the other hand, it is almost impossible to have a unique product with a low price. In other words, you are competing with many similar sellers and you don’t have any obvious advantage.
What if the price is too high
If the price is too high, you will definitely have a higher chance to make profits. However, in this case, customers will seriously consider whether to purchase your products or not. They will think thoroughly and rationally about the pros and cons of making this order. Thus, impulsive buying behavior will decrease.
Therefore, choosing a product to sell with a affordable price can help you keep a balance between profits and sells.
Although Amazon FBA takes care of warehousing and shipping, it does not mean you can select any product to sell without considering the shipping. You need to consider the size and weight of your products. Selling large and heavy products will increase your costs.
The heavier and larger your products, the more shipping fees.
You will be charged more shipping fees if the products you are selling is large and heavy. Higher shipping costs might not be a problem if your customers are Amazon Prime members, because in this way they can still buy your products with free shipping. But most of the customers are not Amazon Prime members and they tend to assume free shipping. Any additional shipping costs may lead to less successful purchases.
The heavier and larger your products, the more storage fees.
You will also be charged extra storage fees. The larger your product, the more storage space it takes. If you happen to sell products at a slow speed, this policy will definitely increase your business costs and limit the interests you could make.
So, ideally, you should sell products that are small and lightweight and easy to ship. And it would be best if they are not easily broken or damaged like contain glass.
To gain profits stably throughout the year on Amazon FBA, you might want to avoid selling seasonal products if possible. Of course, selling Christmas lights or Valentines’ Day gifts could potentially increase your profits in a very short time. And we are not saying that you should not sell any seasonal product at all.
The idea is that these seasonal products should not be your main product line so that the interests you make will not be largely affected by seasonal fluctuations. But you can still come up with marketing plans to achieve additional sales during these periods. For example, if you are selling something that could be packaged into a Christmas gift, you should not miss the opportunity.
What to sell on Amazon FBA: product categories
Apart from the product criterion, product categories are another thing you should do research about. It’s beneficial to understand the latest trends on Amazon FBA and know which product categories are less competitive. Here we provide the most popular and profitable product categories that you could consistently rely on.
1.Home & Kitchen
Thanks to the pandemic, the time people spend at home increases. Therefore, the popularity of home and kitchen products has been increasing. Products for baking, cooking and plant-caring are in constant demand.
2.Outdoor & Sports
It would not disappoint you to sell outdoor and sports products on Amazon FBA because the trend to go outdoors and exercise has been increasing. Nowadays working out has been part of the daily routine for some people and we enjoy hanging out with family and friends outdoors. Also, remember to be prepared for seasonality during spring and summer.
3. Health & Personal Care
The products you could sell in this category is actually very broad, from skin care to vitamins to wellness. And it may surprise you that some Amazon best sellers in this category provide very diverse services such as at home massagers and essential oil diffusers.
Selling on Amazon FBA is appealing but what should we choose to sell? This post provides insights from successful Amazon FBA sellers about product criterion and categories. The conclusion is, choose products within popular categories that are affordable, small and lightweight and nonseasonal.