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Some people believe that selling best-selling products can let them earn more for their Amazon businesses. While that seems a clever idea, one must always think for the long term if they want their business to grow. Listen to Willy as he explained how selling best-selling products are not beneficial for your Amazon business in the long run, and hear about the solution he offers.

In this episode, Willy is going to cover:

  • What are best-selling products and the nature of such products;

  • Why Amazon business owners should not focus only on selling best-selling products;

  • What kind of products should Amazon business owners sell if they want to sustain an evergreen Amazon business.

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TRANSCRIPTION

In one of my previous episode, I mentioned about the top 3 ways to find the right products to sell on Amazon. Some of you listeners are quite funny – you emailed me and tell me, “Hey Willy, actually you don’t need to tell us the top ‘3’ ways. Just one way will do – sell the best-selling products la! Find trendy products, then you will confirm have sales!”

Oh well, I have to say, that’s a clever method indeed. However, I don’t like to do that. From my experience, this is one of the riskiest ways to make sales on Amazon. Listen on to find out why.

Okay, first of all, ‘best-selling’ products generally refer to products that sell very well, and preferably can be cleared off the shelves almost instantly when they got stocked.

However, such products rarely exist. Even if they do, I daresay they occupy only about the top 1-2% of the available products in the market. That means, if you want to focus on selling such products, you need to be prepared that you are going to face very fierce competition. This is because just like how you want to sell these products, other people are eyeing them too. With everyone competing for sales on these few products, the market is going to be very saturated. You can just imagine what a tough fight you will be in.

Next, best-selling products are often products that are in-trend at the moment. I’d call such best-selling products ‘trending products’ instead. Examples of such products include fidget spinners, hoverboards, and charm bracelets, etc. However, there’s a big problem with selling such trending products: trends are fleeting, and they don’t last. That means, these products are not good for building long-lasting business brands. Meanwhile, only those who first brought the products to the markets can make the greatest profits out of them. This is because timing is everything when it comes to selling such products – if you come in too late, the marketplace may already be saturated, hence leaving your listings with a grim chance of survival.

So, seeing all that, why do you still want to sell such products? I will recommend you to change focus and look at the rest of the 80-99% normal products instead. Though these products don’t bring you as many profits in a short time, they are more stable in terms of sales. Let me explain.

From my experience, if you sell a normal product, you can roughly get around $800 to $2,000 in profits per month. While it may not seem big, you need to look at the benefits in the long run. Selling normal products is much easier than selling best-selling products, as there is lesser competition, which means you don’t always have to look at adjusting their prices to win sales. You can quickly move on to sell other products. Now, imagine if you can sell around 10 of such normal products for your Amazon business. That means you can draw around $8,000 of profits per month, and that’s a pretty good profit margin. 

At the same time, you must always be prepared for uncertainties. Let’s say if anything happens, and you have to take down your product listings, the damage to your profit margin will be much lesser if you are selling 10 normal products than if you just focus on 1 or 2 best-selling products. Just think: in the unluckiest case, if you have to take down 1 or 2 product listings, you are still going to earn a decent $7,000 profits per month with your other normal products. Compared to if you focused all your energy only on that 1 or 2 best-selling products, if anything happens to them, you will get zero profits overnight!

Furthermore, normal products can be sourced for and replaced easily. Examples of such products include things like chopping boards, shower mats, and knife sharpener, etc. Now, don’t belittle such things – boring as they may seem, these things are needed by people almost all the time. That means there’s always MARKET for these products. Whose home don’t need chopping boards for cutting up foodstuff, or mats to wipe their feet on after getting out of their baths? Though it’s true that people don’t buy such stuff every day, but trust me – they will need them eventually. And when they come to Amazon for it, it will be YOUR turn to earn. Things will get better if you try to sell different variations of the same product. Like if you sell a blue shower mat, you can also sell yellow, pink or green shower mats. If Amazon takes down the blue shower mat listing, you can still sell the shower mat, but in the other colours!

So, my advice will be to convert to selling normal products for your Amazon business. You won’t be faced with the trouble of thinking of how to outdo your competitors all the time, and with that burden taken off your plate, you can focus on other aspects of your business. In the long run, you will feel much less mentally strained too.

And this will be the end of this episode. So goodbye, and I will see you in the next episode.

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