One of the questions we get the most from our clients is “ What else should I be selling? “ For any Amazon seller, whether brand new or a seasoned veteran, finding new products is always a topic of concern and due to the constantly shifting environment of Amazon, should be a routine part of a successful campaign.
In this article, we’ll review the key indicators we look for in our product research to help you find your next hidden gem. Once you understand the criteria for a good private label product, you’ll be able to pull together a short list of opportunities and figure out your next plan of attack.
Here are our criteria for finding new products to sell on Amazon.
Best Sellers Rank is Amazon’s way of ranking the sell-through rate of each product within each category. The lower the Sellers Rank, the higher the volume of units being sold. Our starting rule of thumb is the BSR must be lower than 50,000 for it to be interesting and sub 25,000 usually means it’s a good seller. Make sure that you are looking at the BSR in the main category and not a subcategory (example: Main Category – Sports & Outdoors; Sub Category – Sports & Outdoors > Camping & Hiking > Sleeping Bags)
Pricing can oftentimes one of the trickier pieces to research and can depend on the types of products you are looking for. However, we’ve found that the general sweet spot for pricing is products in the $20-$80 range. Pricing your product lower then $20 can eat into your margin quickly especially if you are using Fulfillment By Amazon. Pricing any higher then $80 makes production expensive while also taking into consideration that with high priced items, demand must be ensured. That being said, be more cautious on products lower than $20 then above $80 as oftentimes-higher priced items will have less competition.
Finding a product high in demand and with a good price point is like finding sand on the beach, just open your eyes. The key difference is going to be finding a product that meets those two criteria and has low competition. The easiest way to tell competition reviews. The lower the average review count for the first page of results and, more importantly, the top 10 products on a results page, the less competitive the search space will be. We are looking for products with 100 review count averages or less in the top 10 products.
This is a simple one. Try to keep your products in the Standard Size category (Large or Small) rather than the Oversize Category. Standard size is 20lbs or less with 18” on its longest side, 14” on its median side, and 8” on its shortest side. Once you surpass those dimensions, even by a half an inch, your fulfillment fees increase dramatically and will obviously cut into your overall profitability. If you haven’t measured your products appropriately and are working on thin margins, this can be a death sentence to the lifespan of your product.
Amazon is a consumer-driven market and being such, reviews are king. If you’ve found an opportunity with great demand, good pricing, low competition, and the right product size, the customers will quickly let you know if your product meets those standards that they come to expect from buying on Amazon. Once you start getting consistently negative reviews due to poor product quality, you might as well put a nail in the coffin and start over. 4 Star plus reviews should be the goal, while with a 3.5 star review rate you can maintain sales. However, anything less then an average review rate of 3 is going to be very difficult to maintain long-term sales. If you’re the only product in the space, it can work. But as soon as competition comes in (and it will) with a better quality product, your sales will be gone.
In following these simple steps, you can take a lot of the headache and stress out of researching new products. Again, take your time and do it correctly. Rushing into a new product oftentimes spells disaster, but if done the right way can reap rewards for years to come! For help in choosing the right products to sell and making the right decisions on your Amazon account, let Evolved Commerce help. Contact us today!