A Different Approach to Finding a Profitable Product To Sell On Amazon
A friend told me recently that he had trouble finding a niche on Amazon that seemed to be profitable and worth it going for. And I am sure that he is not the only one thinking that there is no success to be found on Amazon anymore due to its intense competition and vast amount of products being offered. However, I have shared a method with him, and I will share it with you now as well, how to find a product that will be guaranteed to be profitable.
When starting to sell on Amazon there are a few common rules that people follow. I share these guidelines in another blog (Beginner's Guide For Amazon FBA Sellers.
For example, in order to avoid any difficulties, people choose small and non-fragile products to sell. Since the majority of beginner Amazon sellers follow this pattern, there is high competition in this type of market, making it very unattractive for sellers who are trying to enter into that field. However, it is advisable to stick to those rules in the beginning of an Amazon FBA career in order to minimize risks that arise due to lack of experience and knowledge of the business.
I have been selling on Amazon for almost a decade, that’s why I came up with my own “rules” in order to avoid that intense competition. I have chosen to look for profitable products in all categories, including fragile/non-fragile, standard/oversize or low-end/high-end pricing. In fact focusing your product research on oversized products is highly promising, since that market has a lot less competition. However, since oversized items are generally more expensive products, the initial investment may be a bit higher than with standard sized products.
This method is just one of many different variations of search methods that you can try when looking for a profitable product. This is how I apply this particular search method for my Amazon product research using our WebApp.
For the price range I will enter a minimum of $20 and a maximum of $100. I will select the option of "Oversize" items. As an example, I will select the Home & Kitchen category. I press enter and a list of potential products will appear below. I scan through the list and look for interesting products.
I will click on any of the products and it will open the Amazon product listing thereof. In this example I clicked on “Ivation Standing Desk with Dual Surfaces Sized & Positioned Height Adjustable for Computer Monitors & Keyboard – Simply Slides Between Sitting & Standing Heights (31 Inches)”. The main keyword of this product is “standing desk”. Since I want to analyze the competition, monthly sales and opportunity of this particular product category, I search for “standing desk” on Amazon and click the Fetchsome icon on the top right corner of my Google Chrome browser in order to access the Fetchsome Chrome Extension.
Now I have all the data about this niche that I need in front of me: competition intensity, average monthly sales, average number of customer reviews, ratings and the opportunity score, which tells me right away how great the opportunity for success within this category is.
Right oof the bat I can see that 1. the opportunity score is 65%, which is not bad at all, and 2. almost all products are oversized (indicated by the red trucks, green trucks indicate 'standard size').
Next, I am comparing four products. The first product has 3 customer reviews, monthly earnings of $19,235. Its Listing Quality Score (LQS) is 66.
The second product has 16 customer reviews and monthly earnings of $14,098, with an LQS of 64.
The third product, that I am looking at, has 20 reviews and monthly earnings of $42,398, and an LQS of 95.
The fourth and last product I am looking at here has 44 reviews, monthly earnings of $58,520 and an LQS of 81.
All in all these review values in this list are not highly competitive, which is a good indicator for an opportunity for us. Offering a similar product with a product listing that will attain a LQS of 100 will automatically generate sales.
This method showed you how you can find a profitable product simply by analyzing the quality of product listings within a certain niche.
I hope this gave you more insight into how you can play around with our WebApp and use different approaches to find a valuable product idea.