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How to Choose Products on Amazon

December 21 2022 02:18
Peter

Amazon is one of the best platforms for dropshipping worldwide, where you can earn high-profit margins. However, it is not as simple as it sounds because several complexities are involved in the dropshipping process. From the product selection phase to selecting the right dropshipping supplier, you don't have any room to make mistakes.

If you want to start your dropshipping business on amazon, stick with us and learn everything about product and supplier selection.

Why do you need a selection on Amazon?

Say that you are planning to start selling some gadgets on Amazon; just having the idea of selling gadgets does not mean you can select any and start selling them. If you start with the wrong products, you may face huge losses because you may not get good orders, and your FBA fees may increase. So, here are a few reasons why you need a selection on Amazon before you begin.

It helps with risk management.

The selection gives you an idea about the potential a product holds. You can study sales data for missions of products, and with this research, the chances of making a wrong decision will be significantly less. Thus, with an informed decision, you can manage the risk of loss well.

You can beat the competition and market saturation with a selection

Remember that you are not the only person selling that product on Amazon, as there will be several others. So, knowing about your competitors and the market saturation for any given product can help you beat the competition. You can select products that may get you ahead in the game by tracking your competitors.

You can be efficient at selecting the right marketing strategy

Your marketing strategy can heavily affect sales on Amazon. So, when selecting products, you may come across tools and insights that give you an idea of competitors' strategies. So, you may inspire your marketing strategy by the successful ones to gain success.

How to choose products on amazon?

Now that you know why the selection is important on Amazon, it is also essential to know how to select products. The main idea here is to keep yourself in a customer's shoes and consider the options a customer will love to buy.

Additionally, you need to keep your margins reasonable and FBA fees low. Below are all the details of everything you need to do to choose the right products on amazon.

Start with the pricing range within your niche.

The first important thing is the pricing range. The cheaper items don't have huge profit margins, and the ones with huge profit margins don't have a huge customer base. So, you need to start at the sweet spot of the pricing range, which is $20-$50 for most products. These are the products that most customers won't hesitate when buy.

Reduce your FBA fees

To keep your profits high, you need to reduce your FBA fees. A trick to do this is by going for lighter and smaller products while maintaining that sweet spot.

Look according to the keywords.

Amazon provides all the data about its product selling insights. You can use those insights to see which keywords are among the top performing, with over 100,000 searches monthly. Products that fall under those keywords provide better results when selling on Amazon.

Manage your profit margin to be buyer-friendly

A good rule of thumb is to keep your profit margins buyer friendly and good for yourself. Anything under 25% will help you maintain reasonable and competition-friendly prices while keeping your margins good enough.

Go for the products with less competition (fewer reviews)

Some products will be perfect in all the above aspects. The only thing where they can be problematic is when they have a huge sum of reviews. That means high competition, and whenever your product and a competitor's product with a lot of reviews are shown together, customers will pick theirs because of positive reviews. So, always start with products that don't have huge competition.

How to find the right supplier?

After you know which products you will be working with, you must find the right supplier. It is one of the key factors in your Amazon dropshipping business's success. So, below are all the things you need to do to find the right dropshipping supplier.

Order from your competitor

Order from your competitor and find the return address. That will be the supplier's address. You can order from multiple competitors, and if you find the same name everywhere, that will be your right supplier.

Contact manufacturers

You may contact the manufacturers and ask for the suppliers working with them. This simple trick will tell you about the best suppliers for that niche.

Do your research

Google always has the answer to all your questions. So, search on Google and see which supplier offers the best services and experience. Make sure that the seller is compliant with Amazon's rules.

Stay away from fake ones.

While doing all the right things, you need to stay away from the fake ones, and here are some qualities of fake dropshipping suppliers:

· They are open for orders from public

· There is no minimum order limit

· They lace contact details

· The supplier is not familiar with the details of the industry

Some of the best options you may choose.

If you are looking for the best dropshipping suppliers for Amazon dropshipping, here are some of the best options you may choose.

1. AliExpress

It is internationally renowned for its wholesale dropshipping experience. Most merchants here are from China and offer worldwide shipping with cheap, good, quality products making it a great option for you.

2. Doba

Unlike other platforms, Doba provides only 165 suppliers, each of which is reliable. Doba has multiple warehouses offering the quickest delivery times, and it is a smart platform that integrates directly with your Amazon store to make payment and order processing effortless.

3. Alibaba

If you are dealing with B2B dropshipping or FBA, you may go for Alibaba, where you get the best B2B deals in bulk. Remember that the shipping time here is not the quickest you may find.

4. SaleHoo

SaleHoo provides you with a list of over 8000 dropshipping suppliers. It is not free like AliExpress, as there is a $67 fee.

Conclusion

Starting dropshipping on Amazon can be highly beneficial, but you must not make any mistakes to get the most out of it. Most beginners make mistakes when selecting a product or supplier for Amazon. However, you can always follow the tips above to select the right one for maximum results.


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