Amazon FBA Product Research: Finding the Best Products to Sell
Are you looking to start selling on Amazon but don't know where to start? One of the most important steps in building a successful Amazon FBA business is finding the right products to sell. In this article, we'll go over the process of Amazon FBA product research and how to find the best products to sell on Amazon.
Table of Contents
1. Introduction
2. What is Amazon FBA?
3. Why is Product Research Important?
4. How to Conduct Amazon FBA Product Research
1. Using Helium 10 for Product Research
2. Finding Suppliers on Alibaba
3. Calculating Profit Margins
4. Checking Competition with CPR
5. Tips for Finding the Best Products to Sell on Amazon
6. Pros and Cons of Selling on Amazon FBA
7. Conclusion
8. Resources
Introduction
Amazon FBA (Fulfillment by Amazon) is a popular business model that allows sellers to leverage Amazon's vast network of warehouses and shipping capabilities to sell their products. With Amazon FBA, sellers can ship their products directly to Amazon's warehouses, where Amazon takes care of the rest, including packing, shipping, and customer service.
However, the success of an Amazon FBA business largely depends on finding the right products to sell. In this article, we'll go over the process of Amazon FBA product research and how to find the best products to sell on Amazon.
What is Amazon FBA?
Amazon FBA is a business model that allows sellers to leverage Amazon's vast network of warehouses and shipping capabilities to sell their products. With Amazon FBA, sellers can ship their products directly to Amazon's warehouses, where Amazon takes care of the rest, including packing, shipping, and customer service.
Why is Product Research Important?
Product research is an essential step in building a successful Amazon FBA business. Without proper product research, you may end up selling products that are not profitable or too competitive, making it difficult to make a profit.
Proper product research allows you to find products that are in high demand, have low competition, and offer a high profit margin. By finding the right products to sell, you can build a successful Amazon FBA business that generates a steady stream of income.
How to Conduct Amazon FBA Product Research
There are several steps involved in conducting Amazon FBA product research. In this section, we'll go over the process step by step.
Using Helium 10 for Product Research
Helium 10 is a powerful software tool that allows you to find profitable products to sell on Amazon. With Helium 10, you can find products to sell on Amazon, see how much profit margin you're making on each product, and spy on your competitors.
To use Helium 10 for product research, you'll need to follow these steps:
1. Go to the Helium 10 website and sign up for an account.
2. Once you've signed up, log in to your account and go to the "Blackbox" tool.
3. In the Blackbox tool, fill in the categories you're interested in, such as "Beauty & Personal Care," "Health & Household," "Kitchen & Dining," "Office Products," "Pet Supplies," "Patio, Lawn & Garden," and "Home Improvement."
4. Set the number of sales to 1 and the review count to 100.
5. Set the monthly sales to 13,000 and the maximum weight to 3 lbs.
6. Click "Search" to find product ideas that meet your criteria.
Finding Suppliers on Alibaba
Once you've found a product idea that you're interested in, the next step is to find a supplier on Alibaba. Alibaba is a popular online marketplace that connects buyers and sellers from around the world.
To find a supplier on Alibaba, you'll need to follow these steps:
1. Go to the Alibaba website and search for the product you're interested in.
2. Contact three to five suppliers and ask for the price of the product.
3. Input the price of the product into the Amazon FBA calculator to calculate your profit margin.
Calculating Profit Margins
Calculating your profit margin is an essential step in Amazon FBA product research. To calculate your profit margin, you'll need to use the Amazon FBA calculator.
The Amazon FBA calculator allows you to calculate your profit margin by inputting the price of the product, the cost of shipping, and the fulfillment fees. By calculating your profit margin, you can determine whether a product is profitable or not.
Checking Competition with CPR
CPR (Competitive Product Ranking) is a metric that allows you to determine how competitive a product is on Amazon. The lower the CPR, the less competitive the product is.
To check the CPR of a product, you'll need to use the Cerebro tool in Helium 10. The Cerebro tool allows you to see the main keywords for a listing, the organic rank, and the CPR.
By checking the CPR of a product, you can determine whether it's worth selling or not. If the CPR is too high, it may be too competitive to make a profit.
Tips for Finding the Best Products to Sell on Amazon
Here are some tips for finding the best products to sell on Amazon:
1. Sell products that are small and not too heavy.
2. Sell products that are not in a competitive niche.
3. Aim for a profit margin of 35% or higher.
4. Check the CPR of a product to determine its competitiveness.
By following these tips, you can find the best products to sell on Amazon and build a successful Amazon FBA business.
Pros and Cons of Selling on Amazon FBA
Here are some pros and cons of selling on Amazon FBA:
Pros
1. Amazon takes care of packing, shipping, and customer service.
2. Amazon has a vast network of warehouses and shipping capabilities.
3. Amazon has a large customer base.
4. Amazon offers a variety of tools and resources for sellers.
Cons
1. Amazon charges fees for its services.
2. Amazon can suspend or terminate your account for violating its policies.
3. Amazon has a lot of competition.
Conclusion
Amazon FBA product research is an essential step in building a successful Amazon FBA business. By following the steps outlined in this article, you can find the best products to sell on Amazon and build a successful Amazon FBA business.
Remember to sell products that are small and not too heavy, not in a competitive niche, and offer a high profit margin. By following these tips, you can build a successful Amazon FBA business that generates a steady stream of income.
Resources
Here are some resources to help you with Amazon FBA product research:
1. Helium 10 - https://www.helium10.com/
2. Alibaba - https://www.alibaba.com/
3. Amazon FBA Calculator - https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
4. Cerebro - https://www.helium10.com/tools/cerebro/
