No one aims at Investing in a new business that isn’t lucrative and takes forever to bring back the profit. Selling products on Amazon platform can be most brilliant idea one can have.

However, not all products are ‘ hot cake ‘ and some may take a period of time before they sell and therefore, here are some factors that one should consider when selecting winning products to sell on Amazon FBA(Fulfillment by Amazon – advanced fulfillment network expertise created by Amazon).How To Choose Products To Sell On Amazon Store?

1. Sales Rank of the Product

Sale rank which can be a number between 1 and 1 million, captures item’s popularity in a certain category, and the higher the number the less the product is selling and the less the number, the more the product is selling.

Sales ranks usually exists for all products that are part of a category. In simple terms, sale ranks indicates the period before an item is sold. Therefore, the period between two sales should be as small as possible.

Though the sales rank of products varies by category, the golden rule is; try and stay under 50,000 and most preferably under 20,000. For instance, a product under 20,000, in a popular category is expected to sell multiple units per day. It is,therefore very important to check at the overall/main category rank of a product and not the subcategory rank sale rank (BSR) to ensure accurate information.

•Amazon product ranks and BSR chartsHow To Choose Products To Sell On Amazon Store?

As a new seller, these two are the greatest tools to help one identify which products to buy and sell on Amazon FBA or private label platform. They also help to show the category in which a particular product falls based on how fast the product is selling thus defining its popularity.

The charts crucial and very important in showing the percentage positions of the overall number of products where a particular product falls, that is, the lower the percentage of the total the more popular that product is.

For instance, a seller may aim to source products in top 1% or 2% or 10% of category depending on the overall strategy. Therefore, printing and saving updated charts relevant to individual Amazon market place for reference is of much more importance since they act as a guide in making the most accurate decisions.

• Amazon Rank & BSR % Explanation

Generally, the better (lower) the rank and BSR, the higher the chances of a particular product selling. However, careful balance should be considered when competitiveness of a product arises. A lower rank product indicates it is less popular and thus chances of higher margin and profit per sale are possible. For example, products which are ranked under 2000 in most categories results in a lot of sales per day.

•Softwares and extensions to help make accurate decisions.How To Choose Products To Sell On Amazon Store?

Using sourcing software such as Tactical Arbitrage, JungleScout or FBA wizard pro can be helpful in checking and including the rank or BSR of each product in the results. This enables the seller to make solid and informed decisions. These softwares can be used:

√ to estimate sales per month of a particular product taking account to amazon rank.

√calculate BSR percentage

√ Shows the product pricing and history.

The information is normally accurate thus dependable in making the right decisions about any product.

Chrome plugins and tools like FBA wizard Pro can be used to provide data within ones Amazon searches on BSR. They also help to determine slow and fast selling products.

The product rank may change significantly within a short period either due to discount on the product or when the product is out of stock. In order to ensure there is no anomaly on current rank, Keepa extensions or CamelCamelCamel is used to determine the correct and the current sales rank history.How To Choose Products To Sell On Amazon Store?

Finally, it’s worth noting that the actual BSR used is the one in the main category and it’s the figure used to compare products when using the Amazon charts. However some listing either don’t show main category or they may lack the rank especially if the product have never been sold.

Also, products in different categories tend to sell different quantities even though they have the same rank. For instance, products ranked 200 in books tends to sell 5 times more units per month than a product ranked 200 in stationary.

It’s crucial to note that BSR % depend on how many total products are in that category. For instance a product with 3% BSR on clothing appears at top 20% when 5 million products are added to clothing category, though selling and still viable option.

Amazon Charts generally acts as a guide and the more one get acquainted with them, the greater the experience, and thus the more informed decisions are made towards active products.

2. ROI (Return on Investment)

ROI, usually expressed as percentage, is used to evaluate the efficiency of an investment. It utilizes the ratio between the net profit and the cost of an investment.

Most attention of many sellers on Amazon are totally focused on ROI and profit per product achieving 100% or more ROI. It is therefore advisable to consider products with minimum ROI of 30% .

3. Profit Per Sale of the Product

The aim of any business is making profits. Therefore, a product making a minimum of $10 per sale profit makes the product ideal to be sold. This gives an individual room to move when competition arises. Competition makes other sellers to drop their prices of the same product.

A product making a profit of $5 or less makes ones profit vulnerable. This happens after listing the product, which makes the other sellers drop their prices thus wiping out your profit.

However, profit per sale and ROI are mainly combined and both are dictated by how much money the seller has in their reserves. For instance, ROI becomes a lesser factor when one is has plenty of cash.

4. Size of the Product

Amazon product are mainly categorized as either standard or oversized. As a new seller, it is advisable to stick to smaller items especially when one is starting out and doing their own preparation of products. The smaller and standard products have several advantages in that, they are easier to handle, cheaper to ship to Amazon warehouses, and less fees is spent on storage. In case one decide to store the small sized products in their home, they tend to occupy less room thus returns are easily manageable.

5. Gated brands and categoriesamazon store

New sellers should avoid the gated brands and categories until they are more experienced and know how to go about the gated brands, otherwise it will cost them. They should stick and pay much attention to product they can sell and make it work.

It’s also advisable to check if a certain brand has restrictions before buying stock either by using Amazon seller app or ‘ Add a Product ‘ in seller central.

Gated brands usually requires permission from Amazon to be sold.

In case an individual decides opening more categories, then can it be done by The funnel guru,the category ungating in USA or Get ungated personalised service, the category ungating in UK or taking Get-ungated courses.

6. High-Risk Brands

New sellers should avoid high-risk brands as much as possible. These are the brands and products that Amazon may allow you to sell them but the owner of the brands does not support their selling. This makes the brand owner to take action either through legal action or policy warning via Amazon to stop selling their product.

This leads to suspension of many new sellers who can never get access to their accounts again.

Therefore, any doubtful product or any brand that seems unsafe from your shortlist should be avoided. It is important for the new sellers to read the guide on the Amazon gated and restricted brands to avoid suspension.

7. Product Value

As a new seller, it is advisable to always stick to product that can be easily written off if required. This can happen when the customer returns the product and you are forced to dispose it.

Sticking to products with a price range of $10-$40 and a profit of $10-$20 makes a product ideal as compared to taking product of price $100 and above. This keeps your business running and once experienced one may aim higher to other products but as a new seller that can be a bit tricky.

Also its worth noting that the product value increases once its manufacturing process ceases. Thus buying such product gives you an in built safety thus compensating your business sales if the stock didn’t sell as expected. Once the product is left at FBA warehouses, the product is sure to sell at a good and better price.

8. Low returns rate

Another factor to consider about a product to sell as a new seller is the returns rate. Products with a return rate of 10% or more should be avoided since returns costs one’s money. One should avoid products that can’t be fixed up and resold once reopened by a customer to avoid losses.

Products which requires too much damaging of the packaging material to get the item may lead to its disposal once returned thus should be avoided. Its advisable to avoid buying products with less than 4 star reviews.

Complex products should also be avoided and only stick to products that maintains and increases value. A tough well packaged products is recommended since less damage or none is done during transit and storage of the products, this results to positive feedback and reviews about the product from the customers.

9. Amazon Categories to Sell in

Majority of new sellers starts with simple, low values and low returns rates products such as toys which is usually recommended for new sellers to start with. It is also advisable to try home and kitchen or office products.

Some products have more returns and new sellers tend to face more challenges when dealing with them, such as electronics. Though being a business, individuals selling products in which they have passion in may make them develop a good feel of the product and able to spot when a good deal arise.

10. Price History/ Buy Price of a Product

New sellers are advised to ensure the selling price of any product at Amazon reflects as normal selling price after using Keepa extensions.

New sellers are prone to be caught out by temporary product prices which increases at fluctuating rate. The product price may state a certain profit which encourages the seller to buy the product but unfortunately the prices randomly goes back to normal. This leads to loss making to the seller who had purchased that certain product.

As a new seller, it advisable to protect yourself from sitting on a dead stock and this can be done by purchasing products which can be sold at average or at least can break even.

Always check the product price and sales rank history before any purchase by checking Keepa which is a chrome extension or CamelCamelCamel.

Keepa can help to identity the product running out of stock on Amazon regularly and thus giving an insight to the seller to buy the product in bulk and sell them on profit during the period the product is out of stock.

11. Wide Appeal

As a new seller, It’s advisable to have the option of your product being sold on other platforms such as eBay and other Amazon market place.

This allows one to clear stock even after the close down of one account. It is encouraged as US seller to sell products that mainly gets profit from Mexico and Canada while US sellers to focus on products that will sell in EU.

Conclusion

Though the amount of product sold by an individual depend on factors such as selling price, FBA Vs FBM, time of the year,seller rating and stock levels. Successful and fruitful selling on Amazon is only possible when the right tools especially FBA Wizard Pro, are used to find the right products. Products selling experience and the technical know-how on Amazon tends to be a gradual process.

If you have any more questions about Sourcing in china, Amazon FBA Prep, Product Photography,FBA Logistics, Quality Control,Factory Audits, Sample Conslidation, Samples Evaluation, China Company Check, please do get in touch so we can assist you in getting the right information.

Leeline sourcing company is involved in different sourcing business that will help your company’s grow, and make your international business better.

No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.

• Product Sourcing:  With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.

 Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.

• Business and sourcing ideas: If you walk into our office, we will share business and sourcing ideas with you, even if you are importing yourself, our ideas will help you avoid mistakes that will be costly to your business. Our advice will surely help your business turn out better.

We will keep updating new resoures about hot selling item in china, if you are planning to open your online shop and don’t know what kind of products to choose, welcome to subscribe our articles, we will give you some sourcing inspiration.

About the author

Sharline is the founder of LeelineSourcing.com. With 10 years of experience sourcing in China, She loves to share knowledge and ideas in sourcing bussiness.She writes only the truths which others are normally not willing to tell. This makes her posts distinguishable from other import & export articles.

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