Finding the correct product to manufacture and sell is one of the most important steps when selling on Amazon.
Generally, a seller should select the Amazon categories they want to sell under based on personal preference and existing knowledge. From there, they should utilise product research tools to find the exact products they wish to manufacture.
*Some sellers choose not to focus on a category at all and select products based purely on results from research software. It is a personal preference but definitely more risky.
Selecting Product Categories
Ideally, when selecting a category, the seller will already have experience or at least a general interest in that area. Pre-existing knowledge helps them to make more insightful improvements to products they choose to manufacture. They can also relate to what buyers want more easily.
Important questions to ask before selecting a category include:
- What am I passionate about?
- What do I spend my time doing currently?
- What areas have I worked in the past?
- What categories do I have existing knowledge about?
- Do I have any contacts that can help me with product development in any of the categories?
- Which category can I build a brand in?
- Which categories can I foresee myself selling multiple products?
- Is this category protected by Amazon?
Selecting Individual Products
After choosing the category, sellers can then focus on selecting individual products they wish to manufacture and sell.
Important questions to ask before selecting a product include:
- Is it a niche product?
- Does it have high demand and low competition?
- Is there room for improvement / differentiation? (check customer reviews)
- Does it sell for between $20-$150?
- Does it sell year round (no gimmiks or seasonal products)
- Does it have a profit margin above 40%?
Important things to avoid when selecting a product include:
- Anything complex or electrical
- Anything that goes in or on the body
- Anything with brand preferences – E.G. Shoes (Nike, Adidas, etc)
- Anything that can break easily
- Anything being sold in high volume by power-sellers
- Anything trademarked
- Anything being trading within restricted Amazon categories
Product Research Software
Once a seller reaches the point of product selection, research software is a must. This software provides deep and insightful research into categories and individual products.
There are a plethora of online research tools available including JungleScout, Unicorn Smasher and ZonGuru, just to name a few.
Jungle Scout are the industry standard when it comes to Amazon research, boasting both a web app and chrome extension. Their products are easy to use, very accurate and relatively inexpensive.
See the video below for a description:
Whichever way you choose to go with your online research tool, be sure to utilise at least one! They are essential to selecting a profitable product.
Some sellers choose to conduct manual research or no research at all. Unless they get lucky, they are throwing their money away.
Every seller should spend time thoroughly researching and should never rush product selection. This is one of the most important stages in the Amazon Selling Process.