Each product is special and has its own market destiny.
Just like the uniqueness of each product, the ‘go-to-market strategy for each will also be unique. Any product can be a success if the right strategy is adopted.
Some experienced sellers usually search for a product with exact precision and treat every decision mathematically after using market intelligence tools which is not a correct approach as well.
You need data analysis in your right hand, unbiased judgment on the left and then join your hands together to make the best decision.
High Demand & Low Competition
It’s absolutely mandatory for you to find a product that has a high or even medium demand.
What does that mean?
Demand will determine how much time your product will take to sell off once it is up for sale on your Amazon storefront.
Amazon Tip. So ideally speaking, you would want to hunt for a product that has a high sales velocity by default and less number of sellers for you to shine among from easily. Whatever product you finalize, you will have to develop a corresponding strategy to bring it up to the 1st page. we can only provide an estimate and predict sensibly using different tools and get a feel on the level of demand from multiple channels. The most famous tool recommended by all gurus out there is Jungle Scout (JS) Chrome Extension or Helium 10. For those who are going to use it for the first time or are in their initial stages, JS Extension provides row-wise data for Amaozn Sellers along with an opportunity score.
Healthy Margins
This is quite often a pitfall for newbies. They get excited looking at product results erroneously and finalizing a product declaring it to be a hot seller. What they fail to take into account is the fact that how much will they be able to source the product for and how much are they going to sell it for.
You are putting so much time, effort, and money not to earn cents but dollars and lots of them.
So we recommend that the selling price of the product should be between $15 – $40 (at least for newbies).
In order to check margins and have a reasonable idea, you can check the FBA calculator HERE. Always make well-informed sourcing decisions and reduce purchase costs.
Average Revenue & Average Monthly Unit Sales
As per experienced sellers, the average revenue for the targeted product niche should be more than $5,000. This information will make you sure that the product is selling profitable.
Reviews
Experienced sellers usually profess about a formula that the product that you finalize should have 3 sellers in the top 10 should be below 50 in reviews and that if the top 3 players have more than 1,000 reviews it will be a tough market and you should anticipate a significant amount of time/money to be spent. So for that reason, it is a no-go area for new sellers.
Small & Light Weight
Our advice is to choose a product which is of less than 1 pound weight and does not have extraordinary dimensions.
Their calculation is mostly based on the dimensions so we advise you to keep a check on your product size and weight as you will eventually have to increase the product cost to be charged to the final consumer.
Seller’s Rank
Highest the BSR of the product, higher the sales volume (not talking about the competition).
Some examples of categories with advised BSR ranges are blow
Home & Kitchen
Primary product BSR range 100 – 20,000
Competing product BSR range 250 – 20,000
Home Improvement . Primary product BSR range 100 – 7,500
Health & Personal Care
Primary product BSR range 800 – 7,000
Be careful to gated categories.
Some categories require prior approval from Amazon like Health & Beauty Products & Grocery items. Beginners should begin with unrestricted categories or commonly known as ungated categories to avoid any unwanted speed breakers.