TRANSCRIPTION

Many Amazon sellers often have the wrong idea when it comes to choosing products to sell on Amazon. They will choose items that their suppliers suggest or worst, they just choose products based on their gut feelings. Now, doesn’t it make sense to actually look out for traits that best-selling products possess first, and then source for products that tick all those boxes instead? That will surely increase your chances of success.


So, in this episode, I will be listing down the Top 6 Traits of Best-Selling Products on Amazon. Do listen carefully and source for products that fit these requirements if you want your Amazon business to progress smoothly!


So, here is the No. 1 Trait of Best-Selling Products, which is Small Size.


Now, when you sell products via Amazon, there are always logistics costs to be factored in. Generally, the bulkier and heavier a product is, the higher the logistics costs will be.


As such, I will recommend selling smaller-sized items. This is because smaller products have less pressure on the price to end-users. For example, items like memory cards are good for sales on Amazon. They can be shipped by envelopes quickly at very cost-efficient rates. Meanwhile, cheap, bulky items often have to increase their prices to factor in all costs and can become unattractive to shoppers. So, when sourcing for products, you should avoid those big items, however attractive they may seem.


Next up is the No. 2 Trait of Best-Selling Products, that is, setting products’ prices at Mid-Range Price.


Now, if you noticed, Amazon best-selling products normally belonged to the mid-range price, like between $25 to $50. This is because low priced items will become unprofitable quickly. Below $15, the products’ profits are easily overwhelmed by delivery and warehousing costs. Meanwhile, products over $150 or so can yield good profits, but lesser units will be sold due to its high price.


The best products will be those which are profitable but are still at a competitive price point. How to ensure this is to always monitor if you have a healthy profit margin. This includes taking note of the money you put in to drive traffic to your listings, the money you use on influencer marketing and paid advertising, and finally through monitoring whether the product selling price you set makes sense financially.


Generally, you should set your products’ prices at a range which will allow you to bring in about $10 profit. That will be a good indicator that your product is probably going to sell well!


So if you got that clear, let’s move on to the No. 3 Trait of Best-Selling Products, which is: Limited Distribution.


Now, why I say this is because Amazon is a very strong, smart and quick price follower. Many times per day, it scans its marketplace for other sellers offering the same product, and also other e-commerce sites so that it can adapt its price to become the cheapest offer.


Thus, if you sell to Amazon as a vendor, or if Amazon decides to sell the same products as you in the marketplace, this price pressure will come straight back to you. Vendors will be asked for extra rebates, and sellers will lose the Buy Box.


However, things will be different if you are selling products with limited distribution. Products with limited distribution aren’t easily available from a large number of online retailers, and If you can bring a product to Amazon that isn’t available anywhere else online, there will be much less pressure to reduce your product prices. When your products’ selling prices are controlled, your profit margins will naturally be protected. That means, this product will be able to bring in more profits for you regularly, and any products that do this is worth investing in.


Then, we come to the No. 4 Trait of Best-Selling Products, which is Selling Branded Products.


Now, the reason why I encourage you to sell branded products on Amazon is that Amazon is very interested in brands and branded goods. And by branded products, I don’t mean only those big brands like Chanel, Gucci, Nike, etc. Even small, unknown brands are welcomed. This is because Amazon prides itself as one of the largest online marketplaces in the world, and they want to get every possible brand on their platform to show that they are the ‘big brother’ of the eCommerce industry and they can be your one-stop shopping solution, right.


In any case, emphasizing on brands means that those doing private labelling business will find it great selling their products on the Amazon platform. If you don’t believe me, you can observe for yourself. For example, having a branded product will help to single you out for the Amazon Buy Box. At the same time, Amazon provides special marketing tools that are only available to brand owners, allowing them to tell the story of their brands to customers. Say, if you are a nutrition brand with strong values on providing better health to the world, you will have the opportunity to share your company’s message on your Amazon store page and hence attract more customers.


Sometimes little-known brands have better prospects on Amazon than really well-known branded products. This is because many big brands are already being sold on Amazon, so there is a lot of competition and price pressure for such products. New sellers can hardly add on any further value to such brands and products. On the other hand, smaller, good quality brands that are not yet established can tick all the right boxes. Amazon is providing opportunities for small players, so if you want to get a bestseller product to sell on Amazon, you can work around with the idea of importing goods from unestablished brands, or just simply start your own private label business!


With that, I come to the No. 5 Trait of Best-Selling Products, that is, products with easy-to-market features.


Now, Amazon’s bestseller products are often the ones that you understand straight away and have easy-to-explain features. Thus, when you are sourcing for products, best choose products which in themselves already have uncomplicated and straightforward benefits.


Remember, marketability is key. And just like on any other e-commerce websites, you can only sell with pictures, text, and video on Amazon no matter how unique your products may be. So before you choose any products, you should ask yourself if you can visually show the benefits of these products with photos, videos, and text. Bestselling products are usually those which you can immediately catch the benefits from one single picture. For example, a smartphone case with a new support system shown in one picture will result in quick purchases and strong growth in your business.


Last but not least, here is the No. 6 Trait of Best-Selling Products, which is Availability.


Now, this may seem obvious, but not being able to provide a ready supply of stocks has been the downfall of many products that otherwise can become a bestseller. Fact is, if the product is not readily available, then it won’t sell. This is because once your stock runs out on Amazon, your seller ranking will drop. In turn, your product will become hard to find within the mass sea of products on Amazon, needless to say, any sales. By the time you replenish your inventory, your competitors could have moved in and your product may never get to reach its potential.


So, only go ahead with a product if you can secure and maintain consistent volumes of stock. Not being able to provide inventory will make everything else you have done useless. It’s better to hold off from selling a product until you are confident of a good supply, than move in early and risk damaging the market.


So, this will be the end of this episode. Do stay tuned if you want to know more useful information like these, and I will see you in the next episode.