Are you looking to dive into selling on Amazon but unsure which products to choose? Finding the right products for fulfillment by Amazon (FBA) can be a game-changer for your business. FBA allows you to store your products in Amazon’s fulfillment centers, where they handle picking, packing, and shipping for you. But not every product is a good fit for this model.
Here’s how to identify the best products for Amazon FBA to ensure your success.
High Product Value
Choosing the right price point is crucial for maximizing your profits and managing potential losses. Ideally, select products priced between $10 and $100. This range helps ensure that even with potential returns or damages, you won’t suffer significant losses. Aim for a profit margin of around 50% of the product’s face value to keep your business sustainable and profitable.
Target Impulse Buys
When selecting products for FBA, consider items that cater to impulse buyers. Products priced under $100 are often more appealing for quick purchases. Customers are more likely to buy items in this price range without extensive research or deliberation. On the other hand, items over $100 may require more consideration, leading to fewer spontaneous purchases.
The Smaller the Better
Size and weight play a significant role in FBA costs. The smaller and lighter the product, the lower the storage and fulfillment fees. To maximize your profits, choose products that are both compact and lightweight. This approach helps keep your expenses down and your margins higher.
Amazon Best Seller Rank (BSR)
Amazon’s Best Seller Rank is a valuable tool for identifying popular products. The BSR reflects how well products are selling within their categories. Aim to sell products with a BSR within the top 5,000. These items typically have high sales volumes and low storage costs due to their turnover rate.
Avoid Restricted Brands
Be cautious of restricted brands when selecting products for FBA. Amazon has strict policies against selling certain brands due to exclusivity agreements or counterfeit concerns. Popular brands like Gucci, Bose, and KitchenAid are often restricted. Stay away from these to avoid complications and ensure you’re compliant with Amazon’s selling policies.
Test and Iterate
Finally, start by testing a small batch of products to gauge their performance before committing to larger quantities. Monitor sales, customer feedback, and overall performance. Use this data to refine your product selection and make informed decisions about scaling your inventory.
In Essence,
By considering these factors—product value, appeal for impulse buys, size, BSR, and brand restrictions—you’ll be well on your way to choosing the best products for Amazon FBA. With the right strategy, your FBA business can thrive and grow effectively. Also, you can get a quote to increase your knowledge by reaching out to Sky Prep Center.
