The key to successful selling on Amazon is simple – sell a product that is in high demand, but with low competition.
In fact, this can be said for anyone who wants to sell stuff online. This is basic Economics 101: you want to position yourself in the Amazon marketplace with high demand and low supply (supply = potential competitors). Once you launch your private label product you want to be able to capture the existing demand immediately without competing against too many other sellers.
So how do you find these products that have high demand and low competition?
Amazon's catalog has millions of products to look through, and we have all of the information you need to find that needle in a haystack. To simplify your product search, there are some key elements to keep in mind. If you stick to these general guidelines, you'll be able to determine optimal private label products to sell.
Characteristics of a Good Product:
1. Retail price between $25 – $50 USD
We discovered that this price range makes it easy to cover direct costs like Amazon's fees, cost of goods sold, and advertising costs. Any higher than $50, and your conversion rate–the percentage of people that see your product and purchase–drops.
2. Low seasonality.
We are after products to sell all throughout the year and not just during certain seasonal periods. The Google Trend Report is built right into the Chrome Extension to detect seasonal sales spikes you can easily avoid.
3.Less than 200 reviews for the top sellers
less than 100 is excellent!
4. Small (fits in a shoebox) and Lightweight
It is much faster and easier to import via Air express or air freight., so you want something that won't be too expensive to import.
5. Can be improved.
You can implement feedback from your competitor's product reviews and create an improved and superior product.
6. Simple to manufacture.
You don't want to run into quality control or manufacturing challenges. Avoid glass, electronics, or highly complex products if you can.
