Maybe you could like to start an Amazon business, but you are wondering how to sell on Amazon like a pro. Yes, becoming an Amazon seller is not a walk in the park, and when you are a beginner in drop shipping, the whole process can be frightening.
Many those who try drop shipping for Amazon quit even before they had a chance to experience success. To distinguish yourself from them, you need an adequate budget, handwork, a lot of research, and dedication.
This doesn’t mean you should not tap to Amazon 197 million visitors per month and start making money while you sleep. We have done the hard work and come up with a step-by-step guide that show you how to sell on Amazon. Let us dive right in!
1. Find a Product to Sell on Amazon
Hot-selling Amazon products will help you standout on Amazon Marketplace and make your store successful.
a. What is a hot-selling product?
It is a product that has low competition but with high demand. To be successful online, you have to apply basic Economics 101: In the Amazon marketplace, you need a product with low supply and high demand.
With this, you will capture the existing demand right away without competing against too many similar product.
b. How do you find a hot-selling product?
There are millions of products on Amazon, so you need a formula for finding the needle in a haystack. We have a simplified guide that will help you find a great product to sell.
Good Product Characteristics
1. Retail Price should be $25 – $50
When selling a product for more than $50, your conversion rate drops (the chance of someone buying your product after seeing it goes down)
Product selling below $25 won’t cover the cost of buying it, Amazon’s fees, and your advertising costs.
2. Non-Seasonal Product
You want to make sales and money all year long and not around certain seasons like Christmas or Independence Day. Install Google Trend Extension to identify and avoid seasonal sales spikes.
3. Less Than 200 Reviews For The Top Sellers
Reviews help you rank on Amazon; if you could find a product that the top seller has less than 100 reviews, it could be excellent.
After launching your product with a strategy of getting reviews like using Rebate Key, then you could effortlessly rank on the first page.
4. Small (Fit In A Shoebox) And Lightweight
You should source products that don’t weigh more than one to two pounds and fits into a small, flat-rate box (8 11/16″ x 5 7/16″ x 1 3/4″). You will save both when shipping from the manufacturer and later during Amazon fulfillment.
Also, small products are easier to import via air, and that way, your product will never run out of stock.
5. Can It Be Improved
Go through your competitors’ products reviews and watch out for the negative reviews.
Check on things that customers don’t love about the product and things they could want improved upon and implement them on your product.
6. Uncomplicated and Simple To Manufacture
Like those in glass and electronics, some products will make you run into quality control or manufacturing.
It is fun to sell electronics, but you will have many customers’ service issues and headaches while selling them. Clothing and fashion products may require multiple sizes and colors for a single SKU.
Yes, each product has its unique balances of competition vs. opportunity, but if you follow our tested blueprint and guideline, you stand a high chance of winning.
How to Find Products Fast
If you try to find the perfect product to sell on Amazon or Amazon niches manually, you might run into a maze and end up quitting altogether. Amazon is the world’s largest e-commerce store, where 56% of all online shopping occurs, which means quitting isn’t an option.
If you want to make it selling online, you have to leverage Amazon data, to understand if people want to spend money on a given niche.
What Is Niche Marketing and Why It Matters To You?
Jack of all trades, master of none.
In life, find something and be the best at it than doing everything and be average. The same applies when selling online. When you carve a niche for yourself, make you a go-to brand, and increase credibility.
A niche market is a segment of a broader market with its own preferences, needs, or identity that differentiate it from the whole market. For example, trousers for transgender people, trousers for plus-sized women, and trousers for vegan women. These are all niche markets within the broader market for women’s trousers.
The benefits of a niche market
Having a niche means being confined to a specific person and on his/her particular need. Thus you will not need to dig much on data to understand and keep up with his/her needs.
Also, there will be less trial and error when doing Amazon PPC advertising, which may save you time and money.
How do you find the best Niche?
There are different ways to find niches such as Facebook groups, Instagram, Reddit, and many more. Jungle Scout’s Opportunity Finder is going to save you turn of time and headache when finding niches people are willing to pay for.
With Opportunity Finder, you will pull data directly from Amazon and sort it all by filtering your choices.
Finding niches to dropship on Amazon with Opportunity Finder
When on Jungle Scout, there a few filters that can make the whole process fast and easy:
- Choose non-restricted categories: These categories don’t require a lot of paperwork and often don’t need an FAQ (frequently asked questions) section.
Toys & Games, Sports & Outdoors, Pet Supplies, Office Products; Lawn, Patio, & Garden; Kitchen & Dining; Home & Kitchen; Health & Household; Beauty & Personal Care; Baby; Arts, Crafts, & Sewing.
The above categories don’t have many variables, which may result to many returns like in Clothing and Fashion.
- Click the ‘Exclude Top Brands’ box
- Slide ‘Niche Score’ to 7 or higher
- Set ‘Average Monthly Price’ to $25 – $50
- Slide ‘Competition’ to ‘Very Low’
- Set ‘Average Monthly Units Sold’ to 200 – 500 units per month.
Within a few minutes, you will see excellent keywords that will help you find real money-making niches.
How to Find Winning Products with Helium 10
Start Using Helium 10 Black Box
What is the black box?
The black box is a helium 10 product research tool designed to uncover potential product ideas that can be transformed into a winning product. It has criteria that can help you customize your searches such as best sellers rank, price, revenue, product category, and many more advanced filters.
How to navigate the black box
- Login to your helium 10
- Click on the product tab
- Choose the category you want to sell in
- Set parameters according to how you want the product to be such as ratings, sales, size, and price range. It would be best to use these criteria; otherwise, you will get hundreds of thousands of products.
- After selecting the criteria, click on Search and helium 10 will do the work
- You can also use keywords to either include or exclude certain types of products.
- If you want to keep your search result for later use, you need to save it as a black box project.
- To access the saved projects, you can just click Load project button.
A general guideline while using helium 10
Categories: Avoid hard to manufacture categories such as Electronics & Watches. If you are starting up, avoid gated categories or those that need special approval.
Monthly Revenue: Minimum $3000, you need a product with an existing market and customers willing to spend money on.
Review Count: Maximum 100, with many reviews, means there is high competition, and it would be hard to make it as a new seller. With there is a low number of reviews that means you have an opportunity to grow.
Price: Minimum $25 – $50; if you are selling a super cheap product, you will need to sell high volume before making real money. You will need a lot of effort to sell a pricey product since it will take a lot for people to trust you.
Rating: Maximum 4. This shows that people are still buying the product despite low reviews, and if we could improve the product and enter the market with a superior product, then we could make a killing.
Shipping Size: Size affects manufacturing cost, the shipping cost to Amazon, and shipping cost during fulfillment.
Helium 10 X-Ray Chrome Extension
When you get a potential product that you can sell, you need to perform more research on the product. Use helium 10 x-ray chrome extension to research the entire niche to determine if there is a tough or easy competition.
X-Ray extension is free and very useful when researching for products to sell. Open it when on Amazon, and you will get all the information you need in one overview.
- Review rating
- Review count
- Sales trends
- Estimated revenue
- Estimated sales
Do you need help with product research? We will do it for you for only $50
If you want to run how helium 10 works, we recommend a FREE Account, but if you are serious with Amazon marketplace business, you should try Platinum Plan.
With the free version, you get two searches daily in every tool, which is enough to see how it works. Platinum gives you unlimited searches daily, and this what you need to get the right product that will give you real revenue monthly.
With the Platinum plan, you get free access to Freedom Ticket, which is a course that helps you understand how to sell on Amazon. The course cost $997, when bought alone.
How to find the right manufacturer
Now you have found a niche and settled on a product, don’t let search for supply derail your dream. The supply you get can either break or make your business, and these steps will help you get the right one for you.
Supplies can be drop shippers, wholesalers, or manufacturers. In our case, we are going to be working with the manufacturer. We want a supplier that makes products from scratch to improve on what is already in the market.
You will direct the manufacturer to make your product based on the improvement ideas you got from negative reviews. Buying from the manufacturer will also increase your profit margin since you will get the product at a low price after cutting out intermediaries – drop shippers and supplies.
Where to look for manufacturers?
You can visit the factory to check products before commuting to buy, but you will have limited choices since they don’t manufacture a wide range of products.
You can get supplies from overseas (China) mostly on tradeshows; some happen in China while others occur in the USA.
You can find manufacturers at the comfort of your home by searching on popular online marketplaces, including TradeIndia, LightinTheBox, eTradeAsia, and Alibaba.
How to Find a Manufacturer on Alibaba
You should head to Alibaba, to speed up the process of getting a manufacturer for your product. Alibaba is the largest search engine and network for supplies and factories in the world.
If you don’t know what you are doing it is hard to tell if you are contacting agents looking to take a cut or actual factories. Also, without the right information, you can’t know whom to trust since there are scammers whom would love to take your hard earned money.
Below are five steps that will help you get a good manufacturer on Alibaba:
- What your ideal factory – The Company should be willing to create the product from scratch.
- Where is the ideal factory located – The company should be located near other companies with the same specification. In China, companies’ location is based on what they manufacture.
2. Initial Search
- You should use a specific keyword to narrow down your search result. Instead of ‘leather shoes’ search for ‘genuine leather shoes’.
- Guangdong Province (China) has been trading for a long time, and most companies in this province tend to be professional. You can decide to search for a company in this area.
- Other three essential options.
a. Alibaba Trade Assurance – If you buy from a manufacturer and the manufacturer do not meet the initial agreement you had like lead times, QC and more then you can submit a claim to Alibaba. If Alibaba agrees that the manufacturer didn’t meet the promise made, then you will get a refund.
b. Gold Supplier – The Company is paying a fee to rank better on Alibaba, which could be a good sign since they are pushing their business forward.
c. Assessed Supplier – Alibaba has used a third-party company to check the supplier’s factory.
You should check mark all of them for you to be on save side while conducting business on Alibaba.
Find Your Gem
After hitting search, you should open the results in new tabs to check individual suppliers, things to guide you:
• Time on Alibaba – if they have been in Alibaba for more than 3+ years that means they have experience.
Weed Out Unprofessional Factories
- Quality Photos – you should choose a brand that has multiple high-quality photos, if they have one phone quality photo, close the tab.
2. Product Description – if they are missing important information, close the tab.
3. Website – head to ‘Company Information’ section and check out their website. It is a professional website, otherwise, close the tab. When on the website you should check if they specialize maybe in leather products if they don’t close the tab. When on the home page, you should look for a website that has a lot of necessary information. Also, check if they have variations of the product you have selected, if they don’t close the tab.
4. Transactional Level & Response Rate
Transactional level – a measure of how much business they do and the frequency they do it with. The higher, the better.
Response rate – higher response rate may ease the whole manufacturing process.
5. If they look good, then consider them
Build an Initial Factory List
• Web address
• Number of employees
• Contact information – email and phone number
• Factory or a trading company – If they are both a factory and a trading company the better since it means they are a manufacturer who can ship directly to you.
• Lead time, price, Minimum Order Qualification (MOQ)
You should compile a list of 30 – 50 companies. Contact your list through email, Alibaba Trade Manager or WeChat.
Ask For the First Sample
You should ask for a sample before ordering to ensure the quality match what you intend to sell on the Amazon Market Place.
You can use the template below as a guide to come up with a copy that says it all.
I am interested in this product. What is the cost for two samples?
If I order the MOQ of this item, how much will it cost to ship to me by sea and by express air?
My shipping address:
After initial response, you should ensure they meet all the standards and certifications demanded by Amazon.