If you’re starting your Amazon FBA Career, you will certainly come to a point where it is crucial to decide the perfect Amazon FBA product to choose to start making those first sales.
Oftentimes, this part of your Amazon FBA journey is the most crucial one. Effective research has the potential to pave the way for substantial earnings, whereas making a poor product choice is likely to steer your business toward significant challenges.
Here are some tips and tricks to help you find the perfect Amazon FBA product and ensure a smooth start to your new Amazon FBA business.
1. Choose your Amazon FBA niche
When selecting a niche, it’s crucial to separate your emotions and engage in research based on facts. While you might be personally drawn to a particular niche, it’s essential to objectively assess the facts to determine if pursuing it aligns with its overall importance, regardless of your personal interest.
Some facts to determine if your niche is a great fit, are:
- Domination: Is the niche dominated by one or two big brands? If so, competing with those established brands will be hard, and you should keep searching.
- Price: If the products in your niche are on the more expensive side, it shows that your future buyers don’t mind paying a higher price for your products. That’s a great sign.
- Returns: Certain products, such as clothing or jewelry, face a high rate of returns, making it challenging to maintain profitability in this particular niche. Stay away from those!
- Seasonality: This is not a make-or-break criterion, but keep it in mind. If your product is seasonal (ie. holiday decorations, calendars, gifts, or even fitness equipment), you can expect your of sales will fluctuate a lot throughout the year. Also, the starting point is crucial here.
- Oversaturation: Oversaturated niches are especially difficult ones to start with. To succeed here, you will need to find a sub-niche within this niche to position yourself with a great USP.
- Hype niches: Don’t mistake a hype niche for a rising one. Hype niches typically revolve around trends associated with products that, upon closer inspection, appear to be unnecessary and likely to have a short-lived popularity—usually lasting no more than a few months or a year. Stay away from those!
- Complex niches: A complex niche requires technical expertise. If you have some knowledge in a certain area, you can use it to help you find a great product and a compelling USP.
If you keep those facts in mind, the first step of finding your perfect product is already done.
2. Determine a big enough market
You’ve likely encountered the advice that smaller markets with lower competition are often preferable to larger markets with intense competition. But why are those markets filled with competitors?
This comes from the fact that sellers naturally prefer markets with higher profit potential, leading to more competitors. While you should still keep the principle about oversaturation in mind, a market with lots of competition and high turnovers can be a great fit.
Think about this: If your market’s current turnover is only $100,000 a month, you will need to earn 10% of this total market turnover for you to make $10,000 a month from your FBA business. In a market generating $10,000,000 in monthly turnover, $10,000 represents just 0.1% of the total share.
However, it’s crucial to consider marketing costs as well. Even if your product captures 1% of the entire big market, it may not be profitable if marketing expenses are too high.
Tools like Helium 10 will help you determine the monthly turnovers of any market.
3. Opt for the higher-end lifestyle product
Why go for a lifestyle product when you just mentioned avoiding trendy niches? There’s a subtle difference between a lifestyle product, as we define it, and a trend. A lifestyle product is something people take pride in showcasing. This not only increases the likelihood of them paying a higher price but also places a significant emphasis on the product’s quality.
Unlike a trendy product, it also tends to have a much longer lifespan. They can come in many forms:
- Couch tables
- Biker hats
All these products you can sell by appealing to your customers’ emotions rather than describing product details, which leads to a higher success rate in selling them.
4. Find your USP
Now, this is the most important step almost everything in this article is based on: Finding a USP (Unique Selling Proposition).
Amidst a sea of generic products, the key is to make your Amazon FBA product stand out. Achieving this involves incorporating a subtle yet impactful modification to an existing product.
These changes could range from minor adjustments, such as using a metal pin instead of a plastic one in a fruit press, to incorporating add-ons, like an armchair with an integrated cup holder, or introducing design innovations.
The best way to find those USPs is by reading through your competitor’s reviews to find things people dislike about their products. It’s as simple as that.
5. Build a brand
Another consideration as you search for your initial product is whether the niche provides an opportunity to build a brand. While this might be challenging with a first product like a phone case, it becomes much more achievable in niches such as kitchen gadgets.
These provide more depth to build a brand as you can develop a series of products all more or less related to each other.
6. Quality is key
The final step on this list should be a no-brainer, given Amazon’s emphasis on reviews. Ensuring great quality is a fundamental aspect for an Amazon FBA seller, as it not only results in positive reviews but also cultivates genuine liking for your products.
Additionally, maintaining high quality empowers you to charge a higher price for your products.
How do I get started now?
To kickstart your journey, follow these six steps and identify around 20 products using this approach. If you’re not part of a coaching program, seek feedback from friends or other FBA sellers you trust to evaluate your ideas.
Sometimes, we fall in love with an idea, but getting input from someone without emotional attachment can uncover important mistakes that might impact the product’s success.
Once you’ve identified your perfect Amazon FBA product, reach out to manufacturers. Discuss the pricing and feasibility of your product to ensure it aligns with their capabilities.
To boost your launch, use LandingPagePromoter’s Sales Funnel Software for top-notch Offer Pages and to attract a large customer base.