Did you know that average sales of more than $12,000,000 take place every single hour on Amazon? With more than 55% of online product searches happening on Amazon, this is one marketplace you cannot afford to take lightly.
The growth of online marketplaces has been remarkable.
In the US, Amazon was expected to account for 50% of all online sales in 2021. As a seller, you have a huge market to tap but then doing it all alone can be tricky as well.
Do note that more than 300 million brands products are available on Amazon, but each one of them is not profitable. The key to reselling on Amazon is to find the most profitable brand name products on Amazon and sell them well.
Here are the Top Tips to Selling Brand Name Products on Amazon
1. Discover Best Selling Brand Products
Finding the top selling items on Amazon is relatively easy. Amazon helps you to understand the products which are selling well and discover market trends. When you make a selection of what to sell on Amazon, check out their key statistics.
Reviewing the sellable factors such as wholesale pricing and the Amazon seller fees is also crucial. Consider selling brand name products on amazon which offer you a target selling price in the sweet spot range of $10-$50.
Make sure your cost of product is a maximum of 35% of your planned sale price. If the product is in the range of 2-3 lbs at the time of shipping, it will help. Considerable higher product quality as compared to competition will also help your chosen products to sell well.
2. Review Competitor Brands
Once you have a selection of brands products to sell, the next step would be to review competitor brands. A product which is in demand and easy to source and ship can be one of the best brand products to sell on amazon.
Some key product statistics which make a product suitable to sell can have a best seller rank of less than 5000 and have less than 10,000 keywords searched a month. You can also consider products with fewer than 500 reviews and which can be searched with multiple keywords on the Amazon database.
3. Scan Product Listings
Login on Amazon and scan the product description in detail.
Product features such as popularity, shipping weight, product category, and present competition are important to consider a particular brand and its products. Prepare a checklist of the criteria and stick to it when you make selections on the possible products.
Prefer sell products on Amazon which can be sold at any time throughout the year. Customer reviews of more than 500 also signify considerable demand of the product in the market.
4. Look out for the Underserved Product Categories
Many times, the niche products sell really well. Think handmade items, traditional jewelry or custom trinkets may not be sold by the big sellers or Amazon. Lack of good competition in a product range can be the perfect entry place for a brand.
Also, check out if your brand product can be linked to or associated with a bestseller product. You must have seen the recommended products column in Amazon that showcases the associated products. The recommended section suggests the buyers to consider the showcased products.
5. Determine Sourcing Channel
Once your brand product is identified, you need to source it.
Alibaba is one of the most suitable marketplaces to source your brand name products. If you can follow this route, you will end up sourcing quite inexpensively.
Wholesale marketplaces are another place for sourcing your brand name products. You can easily find them by browsing on google or checking market references. They may be easier to source but probably costlier than sourcing from Alibaba.
6. Check for Reviews
One of the best ways to know if a product is selling well on Amazon is by checking the reviews. The number of reviews and the average rating can give you an indication of whether customers are happy with their purchase.
A high number of reviews could mean that the product is popular and in demand. A low number of reviews could mean that the product is new or not very popular. Either way, it’s important to read through the reviews to get a better understanding of what customers are saying.
It’s also important to note that reviews can change over time. A product that has a high number of positive reviews today could have a lower number tomorrow. This is why it’s important to check for reviews on a regular basis.
7. Know Your Fees
When you’re selling products on Amazon, you’ll need to pay a few different fees.
- Referral fee: This is a percentage of the sale price and is paid to Amazon for every item that you sell. The referral fee varies depending on the product category.
- Variable closing fee: This is a flat fee that’s charged when an item is sold.
- FBA and storage fees: These are fees attached to the Fulfilled by Amazon service, which includes warehousing costs.
8. Find your Niche
Finding a niche on Amazon is important for several reasons:
By identifying a specific niche, you can focus on a smaller and more targeted audience, which means less competition from other sellers. This can make it easier to rank higher in search results and increase your chances of making sales.
Better customer targeting
Knowing your niche allows you to understand your customers’ needs, preferences, and buying habits, which can help you tailor your product listings, marketing campaigns, and customer service to their specific needs.
Higher conversion rates
When you focus on a specific niche, you can create product listings and marketing messages that are more relevant and appealing to your target audience, which can result in higher conversion rates and more sales.
Focusing on a niche can also help you build a strong brand identity and reputation within that particular market, which can lead to greater customer loyalty and repeat business.
9. Win the Amazon Buy Box
The Amazon Buy Box is the prominent and highly sought-after feature on a product detail page that allows customers to easily add an item to their cart with a single click. When multiple sellers offer the same product, only one of them is displayed in the Buy Box at any given time. Winning the Buy Box can greatly increase a seller’s chances of making a sale, as most customers tend to purchase from the seller featured in the Buy Box without considering other options.
To determine which seller is awarded the Buy Box, Amazon uses a complex algorithm that takes into account various factors, such as product price, shipping cost, seller performance, and fulfillment method. Amazon aims to provide customers with the best possible buying experience by featuring sellers who offer competitive prices, fast and reliable shipping, and excellent customer service.
Some of the key factors that can impact a seller’s chances of winning the Buy Box include:
- Price: Amazon favors sellers who offer the lowest price for a product, including shipping cost.
- Fulfillment method: Sellers who use Fulfillment by Amazon (FBA) and offer fast and reliable shipping have a higher chance of winning the Buy Box.
- Seller feedback: Amazon values sellers who have a high feedback score and a low rate of order defects, such as cancelled orders or late shipments.
- Product availability: Amazon prefers sellers who have sufficient inventory of a product and can ship it promptly.
Winning the Buy Box can be a significant driver of sales for Amazon sellers, as it can lead to increased visibility and higher conversion rates. However, it can be challenging to win and maintain the Buy Box, especially for sellers who compete with many others selling the same product. As such, sellers need to continually monitor and optimize their product listings, pricing, and fulfillment methods to increase their chances of winning and retaining the Buy Box.
10. Sell with FBA
Fulfillment by Amazon (FBA) is a service provided by Amazon that allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle the picking, packing, and shipping of their orders. Here are some of the key reasons why selling with FBA can be beneficial for sellers:
FBA products are eligible for Amazon Prime, which can help sellers attract more customers and increase sales. Prime customers tend to prefer products that offer free and fast shipping, and FBA allows sellers to provide that level of service.
Enhanced customer service
With FBA, Amazon handles customer service and returns on behalf of the seller. This can free up a lot of time for the seller, as they don’t have to deal with customer inquiries, returns, or refunds.
More storage space
By using FBA, sellers can take advantage of Amazon’s vast network of fulfillment centers and store their inventory in multiple locations. This can help sellers to expand their product offerings and increase their storage capacity without having to worry about warehousing and shipping logistics.
Improved fulfillment speed
FBA products are processed and shipped faster than products fulfilled by the seller themselves. This can help to improve customer satisfaction and can result in higher sales and better feedback.
FBA also offers international fulfillment, which allows sellers to reach customers in other countries and expand their business globally. This can be a great way to increase sales and grow your customer base.
Without a full understanding of these costs, you will never have a full grasp of the potential profit or loss that selling branded products on Amazon brings. Luckily, Algopix market research tools can give you some of this key information and allow you to understand what kind of margins are available.
You have indeed planned, sourced and implemented the marketing campaign well to sell your product.
At this time, low sales or a cutthroat competitor can be quite disastrous.
Doing a detailed, in-depth market and product research will help you identify how you can grow your business by selling brand products on amazon.
The study will assist in understanding the market and customer behavior which reflect in numbers. It will help you to create positive customer experience and have successful repeat brand product sales. As a seller, good reviews and repeat customers will support you in having a sustainable and profitable business.
The Algopix Team