The key to success for any Amazon reselling business is identifying profitable items and selling them in the right marketplace, at the right time.
Admittedly, it’s not always that simple…
There exist many factors that are significantly impacting the profitability of a product – be it seasonal buyer demand, unforeseen selling expenses, or actions from competing sellers within the same market.
Here is where most sellers run into trouble.
Any eCommerce reseller needs to make informed decisions on which products to source and where and when to sell them, based on accurate and reliable analytical insights, ideally gathered in real-time.
7 Tips for Resellers to optimize their product discovery strategy:
1. Spy out products in high demand
Product offerings that are attracting strong customer demand are likely to generate high-profit margins for the seller.
Although calculating accurate demand levels of product offerings across global online stores will be more time consuming and challenging without the use of automated analytics software, gathering information on the top-selling items across eCommerce markets is fairly convenient.
Online retail giants Amazon, eBay, and Walmart are providing information on the best selling items across their stores themselves.
Check out the top-selling items on Walmart, eBay Best Sellers, and Amazon Best Sellers to gain better insights into which products are currently in high demand.
2. Analyze your expected profit margins
To be able to identify profitable products effectively, sellers must gain extensive insight into all costs that are involved when selling a product.
Besides exploring price levels to calculate accurate profit margins, sellers must be aware of all costs that are involved with sourcing and selling a product, such as specific marketplace fees, local taxes, shipping expenses, or advertising costs.
3. Select a niche market based on data insights
Niche market opportunities are quickly evolving, and it requires more for being a successful seller than just being among the first to supply a given product.
Since niche markets are highly profitable, the general degree of competition is fierce, and the number of sellers is continually increasing.
Therefore, make sure to assess the competitive environment for a product to enhance your discovery strategies.
Moreover, niche markets are often targeted by large industry actors that easily possess the financial capabilities to quickly and effectively enter and supply a given market, representing severe competition to any seller.
4. Assess legal implications of products and marketplaces
Important factors that are impacting the profitability of a product lie within legal issues, as both Amazon and eBay have restrictions on specific product categories.
Gaining awareness of all statutory factors that are impacting a product’s sales performance is an essential contributor for better product discovery as these insights help to evaluate a product’s profitability.
5. Analyze your competitive landscape
Admittedly, looking at the competition to optimize one’s business activities is nothing new.
Nevertheless, analyzing product listings from the competition and their corresponding customer feedback can give valuable insight into profitable products.
Moreover, in order to improve product discovery, online sellers must be aware of new merchants entering a given market at the right moment in time.
6. Check what’s trending online among targeted shoppers
Make use of eBay and Amazon resellers tools that generate insights into popular keywords.
Another option to enhance consumer product discovery is checking frequent search terms on Google trends which helps to gain a general perspective into what consumers are demanding at a given moment.
7. Take advantage of an automated solution for cross-channel product & market research
Most certainly, leveraging sophisticated algorithms that generate real-time, accurate market insights into prices, demand levels, and sales estimates across eCommerce markets are priceless for any Seller – and the most effective method for discovering profitable products.
It’s nearly impossible to achieve an equally precise set of product & market data, with actionable insights, at scale and in real-time when carrying out your product discovery manually.
There are many great tools out there that help to reveal profitable products.
We understand that efficient product discovery for resellers is an essential contributor to operating a successful business.
A product market research tool like Algopix enables sellers to discover products using keywords and unique product identifiers while generating actionable and precise market insights into a product’s profit margin, selling expenses, and the competitive environment – in real-time.
Got any questions, concerns or additional tips?
Drop us a comment below.
We’d love to hear from you.
The Algopix Team