The Right Products for Amazon

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Our team often gets asked about what types of products make the most sense to sell on Amazon. For anyone looking to move into selling online, Amazon is probably the first thing that comes to mind, due to its ubiquitous brand recognition and world-class sales technology.

There are so many different factors to consider when evaluating if Amazon is right for your business. In a previous post, we covered some of the initial, high-level considerations one should make when determining whether or not they should pursue an Amazon ecommerce strategy. 

Now, let’s take a closer look at products themselves. Simply put, some products are better suited to sell on Amazon than others. Price point, uniqueness, brand recognition and your product's physical attributes can all affect your ability to succeed with an Amazon storefront. This is by no means a comprehensive list, but a good place to start to building your Amazon strategy.  For additional insights, book a free consultation with our team of ecommerce experts to help you create your Amazon strategy.

The Sweet Spot of Pricing

amazon-shopping-cartAs a very general rule when it comes to price point, products that are between $25-100 have the potential to be solid, profitable candidates to sell via Amazon (assuming you have accounted for your own fixed costs aside). In that price range, there’s more likely to be allowances for the various fees and commissions deducted by Amazon, depending on whether you use Fulfillment By Amazon (FBA), fulfill yourselves on your own, or via a 3rd Party Logistics fulfillment partner. Using FBA you’ll get access to much more competitive shipping rates, and you won’t have to worry about fulfillment - it's all managed by Amazon and their world-class sales technology and logistics. For the amount of extra stress, labour, time & shipping costs it can save you, it’s usually worth the extra costs for products of a certain price point & sales volume.

How Unique Is Your Product?

If what you have to sell is commonly seen as a commodity product (even if you truly believe yours is the best!), be prepared to end up in search results with hundreds of other items.  Consider that to break into the Amazon market, you may have to invest quite a bit in advertising on Amazon, which can quickly get very expensive in highly competitive spaces. According to Amazon, 76% of Amazon shoppers use the search bar to find an item, and search advertising is a way for brands to stand out among the competition. The more unique your product is, the less you'll have to compete for that precious top-of-search-results space, and the less you may have to invest in marketing to beat out your competitors.

Pre-Existing Brand Recognition

How well known is your brand currently? If you’re an established brand (either in traditional retail or through your own ecommerce site) that customers are actively seeking out online, chances are they’re probably already looking for you on Amazon. However, if you're a brand-new player in a product space where there are a hundred other products solving for the same consumer needs, or, if you're a completely new innovation altogether, Amazon many not be a viable sales channel for you right now.  At least, not yet, although Amazon does offer it's Launchpad product space for new brands and innovative products.

Physical Attributes

How will your product ship? Is it a large, bulk & heavy item? Does it come flat packed? Is it small enough to ship in a padded envelope or standard Amazon shipping boxes?  The dimensional size and weight of your product can significantly factor  into FBA prices, or your own cost if you choose to fulfill orders yourself.  According to RepricerExpress, the most successful items on Amazon are those that are not too big and not too heavy, and allow for the most healthy profit margins for the supplier as well.  Be wary though, of certain items and product categories that are either too light, as you don't want to risk damage from a package being crushed. 

If you have a brand or products that meet some of the criteria above, but you're not sure where to start, take us up on our offer for a 30-minute consultation to start building your Amazon strategy. Our team of ecommerce experts has almost 12 years of multi-channel ecommerce experience working with Amazon, eBay, Sears and more, and we're here to help.

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About Author

David Ward
David Ward

Dave is the CEO + Founder of Meticulosity and a serial entrepreneur who has spent his 20+ year professional career as an agency owner in digital marketing and web development space.

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