My 3-step formula to decide whether I will sell that product on Amazon or not?

it takes me 2 minutes to decide if I want to sell that product

When selling 3rd party brands on Amazon under the Wholesale FBA business, it is important to analyze the products and select the right one in order to make healthy profits and build a long-term scalable business.

Choosing a product to sell can be difficult, especially with so many possibilities available. You can, however, make an informed decision and set yourself up for success with the correct approach and technique. In this blog post, we will go over a 3-step method for selecting a product to sell on Amazon, as well as other things to consider during market research.

Step 1: Estimate Monthly Units Sold

The first consideration in choosing a product to sell on Amazon is the projected monthly units sold. This will give you an indication of how popular the product is and whether there is enough market demand. You can estimate a product’s monthly sales using Keepa’s units sold history or FBAToolKit.com. If the expected monthly sales are less than $50, selling that product may not be worth your time and effort. If the expected monthly sales are greater than 50, it may be a good product to explore.

fbatoolkit.com

Step 2: Competitor Analysis

The next step is to examine the competition. This includes detecting any other 3rd party sellers, as well as Amazon itself, who may be offering the same product. It may be difficult to compete if there are more than 2 shark sellers or if Amazon selling the product. In such a case, it may be wise to switch to a different product. However, if there are only one or two shark sellers, the product may still be worth investigating.

It is also critical to examine the competitors’ reviews and ratings. Look for common consumer complaints or problems with the product. This might assist you in identifying areas where your product or customer service can be improved.

Tip: While analyzing your competitors, also ensure how buybox is rotated frequently between sellers. If you see a specific seller or Amazon’s dominance in the Keepa graph, skip that product.

Step 3: Avoid Price War

The 3rd step is to see if there has been a recent price war between sellers. A pricing war occurs when vendors compete with one another by lowering their prices. If there has been a price war, it may not be worthwhile to sell that product because it is not lucrative. However, if there hasn’t been a price war, or if one has occurred in the past, it may be worth evaluating the product in a few weeks.

If you see a recent price war and no such history in the post before recent, I would prefer to put the product in follow-up and visit it back in 1-2 weeks’ time and see if the price war is settled now.

Step 4: Calculate Profits Correctly

There are many tools you can use to calculate profits. But please know that every tool will use Amazon’s API to get relevant numbers. Sometimes, the tools don’t provide you with accurate calculations. Hence, I highly recommend using Amazon’s official revenue calculator which comes up with accurate numbers.

While calculating profits, make sure you put the shipping to Amazon cost as well. Some sellers forget this cost and later it adds up to their expenses.

I’m sure the above will be helpful enough for you to make the right decision in product selection on Amazon.

Do let me know in the comments if you find it useful or have additional tips or strategies to ease the product selection process.

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