Amazon is the #1 online shopping platform in Europe and the USA. While street shops continue to lose revenue, Amazon keeps growing significantly. There are hardly any products, that cannot be found on Amazon, but not every product is suitable if you are just starting out. As a beginner you might want to look out for good selling product in areas with low competition. A strong focus on product research is crucial to succeed.
Anatomy of a perfect FBA product to start on Amazon
A good strategy to find the perfect product for a successful start as a seller on Amazon is to focus on the Bestsellers. Intensive Product research is time-consuming, but it will sure pay off. To make it easier, here are some guidelines. You want to find products where you can achieve steady long-term sales with minimal input. Ideally your product will meet the following requirements:
- Small and light weight
- Sales price 15.00 to 50.00 Euro
- Safe, not potentially harmful
- steady demand
- low competition
The ideal product would be functional and beneficial for the customer. Small and lightweight products can be stored and shipped at a low cost. You can find more information about that on the Amazon website here. Ideally the weight of the product is 400 to 800 gram and it fits in a shoe box. Be aware that measurements and weight influence the shipping cost. You might be able to purchase products from Chinese manufacturers at a very low price.
For Prime customers you will be paying for the shipment. Therefore, the sales price should not be too low. A sales price above €15 is sufficient. A sales price below €50 attracts impulse buying. If the price is above €120, Amazon customers might rather choose another product. Ensure you are choosing a product with low competition. Also check if the products of your competitors do not have too many reviews. Otherwise, it might be difficult to introduce a new product because customers tend to put a lot of weight on reviews.
Products you want to avoid as start on Amazon
Not all products are suitable, especially for beginners. Here is my recommendation of what you want to avoid:
- Avoid Electronics and items with high return rate
- Avoid seasonal or trending products
- Avoid large, cumbersome or sensitive products
- Avoid cosmetics and products for children
- Avoid highly competitive products
Electronic or mechanical products can be defective easily and you want to avoid high return rates. Don’t start with seasonal or trendy products. Your barbecue grill may be hard to sell in autumn or wintertime. Trends change fast and may be short-lived. Also avoid the big and heavy products and products that can potentially be harmful to customers. That is why you want to sell safe and stable products that can be transported easily. You want to sell safe and stable products that can be transported easily. Cosmetics and everything that goes on the body or inside the body is not for you if you are starting out. Same applies to products for infants and small children. You do not want to risk harming a customer and get sued over it. Also, stay away from highly competitive areas. You might not be able to even enter that market. Finally, stay inside a reasonable sales price range. If your product is too cheap to generate good margins it may not be sustainable. If your product is expensive, your investment might be high with a relatively low margin.