The key to succeeding in drop-shipping on Amazon is having the right information about the products you want to sell. Sellers need to identify relevant KPIs in order to maximize their profit and reduce their expenses. Amazon is a huge marketplace, and with millions of transactions occurring daily, there is plenty of info to analyze. Knowing what people are buying and how much they’re willing to pay for it goes a long way to raising profit margins.
If you want to become a successful dropshipper on Amazon, you’ll need to learn about these KPIs:
- Expenses (fees, shipping, and taxes)
- Profit margins
- Demand level
- Competition level
- Sales volume
- Seller ratings
- Total product reviews
Next, you need to set a budget. You can’t approach product sourcing blindly. Determine what your budget is for a specific product, how much you stand to profit off of it, and what expenses you should plan for.
The easiest way to find potential products is to scan through niche pages on the subcategories of Amazon. When you find products that are interesting, search for them using a product research tool like Algopix. The Algopix platform makes it easy for you to visualize all of the data. The results include expenses, profit margins, competition and demand levels, and more, for a variety of marketplaces and regions.
Drop-shipping is a flexible method of selling where you want to offer your products in as many marketplaces as possible. Algopix is capable of showing you the estimated sales volume in multiple Amazon marketplaces. This helps you decide which marketplaces and products meet your KPIs.
Are you ready to grow your Amazon drop-shipping business? Algopix can help you do just that. Sign up for your free trial today.
Please login or Register to submit your answer