While succeeding on Amazon generally isn’t a “get rich quick” scheme, as JungleScout reports, nearly two-thirds of Amazon sellers are profitable within their first year, with those with one to two years of experience potentially taking home around $42,000 a year in profits.
If you’re hoping to be a successful Amazon seller, it’s going to take time and effort, but these tips can help you achieve your goal.
Do Plenty of Research
Before you spend any money on your new business, it’s a must to conduct Amazon product research to find out if people will be willing to buy your products. The last thing you want to have happen is to purchase a bunch of inventory you can’t sell. You’ll want to find products that can be sourced inexpensively and sold for a profit. Choosing products just because you like how they look and think they’ll probably sell isn’t going to cut it.
There are many different avenues for researching, including Amazon Bestseller lists, which not only include the best-selling items but also “gift ideas,” “most wished for,” and “movers and shakers.” All of these lists can provide invaluable insight into which products you should consider. You can also use Amazon’s Fulfillment by Amazon (FBA) site, which provides sales-tracking tools to third-party sellers that can tell you how many units of a certain product are typically sold each day. Consider the expected return on investment – many successful sellers look for something that will provide at least a 30 percent ROI.
Google Trends is also an incredibly useful tool. You can set up alerts to instantly receive notifications about popular or trending topics to identify relevant subjects that tie into your business needs. That will allow you to explore potential products that are likely to sell on Amazon.
Use Professional Photos
It’s surprising how many sellers, not just on Amazon, but sites selling all types of products and services, use poor quality, grainy photos. Customers want to see what they buy, and if they can’t, odds are, they’ll pass it up. With professional photos, you’ll also be seen as a professional seller, which tells potential buyers they can trust you to deliver. Following the product image guidelines on Amazon will help specify the size and quality of the image you need. You might also search for photography tips online to ensure you capture the highest quality photos possible.
While you might think that having the lowest price is a sure way to increase sales, if you’re the cheapest out there, shoppers are likely to perceive your items as poor quality. Having a lower price can help get your items closer to the top of search results, but you’ll want them to be fair and competitive. If you’re selling premium products, it’s a must to convey a sense of quality which might mean shooting for more consistent but slightly higher prices. Do some research on what products like yours are selling for and try to find a happy medium that will entice customers to buy based on value.
Before you come up with a final price, don’t forget to count all the costs along the way, from manufacturing to inventory, marketing, and shipping, along with the costs of running your business, such as office space, utilities, etc.