What Are The Best Products To Sell On Amazon.com
What are the Best Products to Sell on Amazon?
Amazon has emerged as the leading eCommerce site with a net income of around 21.33 billion dollars in 2020. It also has approximately 2 million active sellers in the marketplace, consistently increasing these numbers. In this highly competitive scenario, it becomes pertinent for any new seller to create an information base about the products in the highest demand on the site.
Understanding and creating a knowledge base will certainly help the sellers identify the right products to invest in and also the targeted audience. It can help to exist, and new sellers predict customer behaviour thus make the desired adaptations to the product.
Most Desired Products on the Amazon Site
It is advisable to look into the list of bestselling products before choosing which product to sell on Amazon and which ones to ignore. There are two categories, namely the most popular ones and the most profitable categories, which any new or existing seller should thoroughly research on Amazon. It will ensure that you understand the Goldilocks Zone of products in terms of their popularity and profitability factors.
The most popular categories of products will clarify what are the products that interest customers to the most. According to a Jungle Scout's Report for 2021, below is the list of most popular products:
● Home and Kitchen 40%
● Sports and Outdoors 21%
● Toys and Games 19%
● Beauty and Personal Care 19%
● Health, Household and Baby Care 18%
● Kitchen and Dining 16%
● Office Products 15%
● Garden and Outdoor 14%
● Tools and Home Improvement 14%
● Pet Supplies 13%
The most profitable category will clarify the products with the highest profit margin rate and also ensure higher returns for the seller. According to a Jungle Scout Report, below is the list of most profitable products:
● Computers 28%
● Video Games 26%
● Handmade Products 26%
● Books 25%
● Apps and Games 24%
● CDs and Vinyl 23%
● Home and Kitchen 23%
● Pet Supplies 23%
● Beauty and Personal Care 23%
● Kitchen and Dining 23%
It can be observed that both the list of most popular and most profitable categories has specific overlapping and differences in them. A new seller might benefit a lot by researching these kinds of lists and understanding the products. It will give an idea about where the demand lies in the marketplace and which category of products has the highest profit margin. It will also help the seller to choose the kind of product that is worth their investment.
Factors to be considered before choosing the products
If you plan to become a seller on Amazon, the very first step is to research and ensure you gather information extensively. Below is a list of tips that you should refer to before deciding on the product:
● Staying away from both extreme spectrums: Although choosing the category of the most popular product will provide you with a large base of customers, it also means high competition and saturation that you can’t underestimate. The competition is also from Amazon in all these categories as it will also field its products before your search results. It will also require innovations, creativity and something new that you need to bring to the table.
On the other hand, if you focus on the lowest end of the spectrum, there might be very few takers of the product as the need and demand will be significantly less. So, it is advisable to stick to the Goldilocks Zone of this spectrum.
● Choices should be based on evidence: Understandably, you are passionate about your product, but it is imperative to understand the market's specific needs and demand trends and statistics to ensure you have better reach to the targeted market. The importance and utilization of data and evidence are paramount before deciding to launch any specific product. Therefore, invest in data gathering and give a lot of priority to the figures.
● Dynamism in consumer behavior and other trends: E-commerce sites are incredibly dynamic and competitive. Consumer loyalty can shift with the emergence of various alternatives. It is also essential to remain observant of the changing trends and keep updating and expanding the products accordingly.
● Invest in lighter materials instead of heavy ones: This is timely advice for new sellers with limited resources as heavyweight materials incur a lot of packaging and delivery costs. It cuts down a significant amount of the seller's profit margin. So, it is prudent to start with the lighter materials instead and then slowly expand with time.
Along with these factors, it is also essential to understand the factors that impact consumers' purchase decisions. So, this will help you in deciding which is the best product to sell and also to invest in products in a way that will allow profitable turnovers:
● Price of the Product: It is ranked as the most crucial reason behind consumers' decision to buy the product among the customers surveyed. Around 41.1% of consumers ranked it as their topmost priority. So, while choosing the product, make sure that prices are competitive with other products in the category.
● The Experience: The quality of the shopping experience comes second among factors that influence purchasing decisions, with 22.7% voting for it. It also includes shipping and easy to return elements. So, before choosing the product to sell, the seller must create a preplanned and thought-out way to smoothen the quality of shopping.
● Reviews of the Product: The surveyed customers ranked it the third most important factor behind the purchasing decision with around 7.7% votes.
It is a daunting task to decide the product you will launch as a new seller on Amazon. Researching and understanding the category of products will provide a firm footing in the market. There is an interplay of various factors behind product sales and profits. Your passion for your product is fundamental, but so is the evidence and data. So, choose wisely before settling on the product.