If you are also struggling to find the right product to start selling or if you are also feeling overwhelmed by the endless options, then don’t worry! You are not the only one. Almost every Amazon Seller has been in your shoes and now it’s your turn to develop your own step-by-step approach to research products. In this blog, we will talk about how you can also identify the perfect product and start selling high-demand products on Amazon FBA.
What’s the Difference Between Amazon FBA and FBM?
When you start selling on Amazon, you have two options: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). It’s very important that you understand the difference between these two options. This way, you will be able to make an informed decision that will suit your business model.
FBA allows you to send your products to Amazon’s Fulfillment center. From there, Amazon is responsible for storage, packaging, shipping, and even customer service! So, through FBA, you can focus on building your brand while Amazon takes care of the logistics.
FBM requires you to handle everything from warehousing to shipping. You will have to use your own resources to store and ship the products directly to the customers. This eliminates the need for you to pay service fees to Amazon and makes you wholly responsible for customer service, returns, and inventory management.
Therefore, the difference is simple. FBA is a service that Amazon handles from storage to returns, while FBM means you have to do everything on your own.
Now, which option is better for you? For this, you need to take your business needs and goals into consideration. So, if you plan to deal with high-volume, high-margin products and do not wish to handle storage and shipping, then FBA is for you. However, if you want to work on small-scale, low-margin products and do not mind handling inventory, then FBM should be your pick.
(Also Read: How to Start Online Amazon FBA Arbitrage: A Step-by-Step Guide for Maximizing Profits )
How Do You Find Products to Sell on Amazon FBA?
The Amazon market is quite vast, and endless competitors are bringing in countless products every day. Suppose you wish to start selling but then waste time finding products and taking risks that aren’t going to cut. You need a tool to help you find the right products, help you reprice the products as soon as the price fluctuates in the market, and keep you updated regarding the changes in the market. Here, we have what you can call a success formula to find top-performing products; let’s have a look:
- Demand: Of course, you need to focus on high-demand products that have a consistent sales history. They should have at least 300 monthly sales or 10 daily sales. This way, you can ensure that the product has a solid foundation in the market.
- Competition: You need to identify products with limited seller competition. This will allow you to create a window of opportunity for your brand. You can have the upper hand and increase your sales. Also, these sellers can lead you to product manufacturers through their descriptions.
- Trends: Nothing can go wrong when you target products with a good review count. If you pick a product with a count of 400 and below, it can indicate that there’s room for market growth and a chance to stand out as a brand leader.
- Price: You need to find a product that is profitable and appealing to customers. Your product can be priced between $10 and $70, which will meet demand and margins.
- Logistics: You can use logistics as an advantage. Pick products that are lightweight for say, under 5 lbs. This will help you minimize storage and shipping costs. You can maximize your profit margins while using FBA to streamline the whole process.
End Note
Once you figure out a strategy to find products, remember that you will be on Amazon for the long run. You can use tools made specifically to help your seller’s business. This way, you can discover products faster, and check insights and sales while auto-managing your FBA inventory. Hence, you will have the time to focus on your business growth and strategy while the redundant process and research can be handled by the Amazon tool. To learn more about this, you can get in touch with us at [email protected].
