How to Select Your First Product For Amazon FBA in 2022?

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Product selection is the first and critical step to starting your Amazon business. In other words, choosing a good product means your business is already half way there. In this article, I will introduce you some useful tips to select products for Amazon FBA.

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Tips for Selecting Your First Amazon Product

Amazon product selection is a very complicated process, I hope the following suggestions will help you.

Select A Suitable Product Category

If you are new to Amazon and have no idea about how to pick a product to sell, then you can refer to Amazon BSR (best seller rank). And BSR can indicate you how well the product is selling on Amazon. To be specific, a product with a lower BSR means selling well and a product with higher BSR means selling badly. You can click the bestseller button on Amazon and browse the products to get some ideas. Then select a category that interests you. Note that, try to choose small and light products, because heavy products will be very high freight, some potential customers will have concerns about this.

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Choose A Product You Are Familiar with

If you want consumers to buy your product, you should first have a basic understanding of your own product. Then, from the consumer’s point of view, introduce the features and quality of your product, highlight the characteristics of the product, so that it is easier to sell your product.

Calculate the Product Price You Can Afford

If this is your first product, it is good for you to know what product costs you can afford, which depends on your budget. Then how to calculate it? Here is an example for you. If you have 10,000 USD, you can take the following steps to get your affordable product price.

  1. If your total budget is 10,000 USD, then you can divide it into two . Why? Because you need to spend 10,000 USD on two purchase orders, as soon as you receive the first purchase order into Amazon FBA warehouse, you are going to send the second purchase order to your supplier, so you can have more product coming into Amazon FBA when you sell through the first purchase order. Then you can get 5,000 USD.
  2. Divide the 5,000 USD by the total lead time, let’s take it as 5 months. If you buy anything from your supplier shipping through the ocean, including the production time and shipping time, the total lead time will be around 5-6 months. Then you can get 1,000 USD/ per month.
  3. If you can sell 200 units of the products per month, then you need to divide the 1,000 USD by 200 to get the per unit price. Then you can get your affordable unit product cost, which is 5 USD. That is to say, your unit product cost must be under 5 USD or you will be under financial pressure.
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Find A Particular Keyword for Your Product

When choosing a product, you need to do market research to understand the depth and breadth of the market. Market depth can be seen from BSR, helping to understand the best-selling degree of the product. What is marker depeth, simpliy explained is how many different ways you can cross sell your product.

For example, if you are selling a special fishing hook, then your target customers should be fishing lovers. But if you design a beautiful gift set of fishing accessories, then your product can be sold to a son who wants to buy this as a father’s day gift to his father or a wife who wants to buy a gift for her husband, who loves fishing.

So when selecting your first product, you can’t only think about the depth of the market, that is how much potential the market is going to have, you should also think about how to design your product to have a different keyword for the customers to get the product. Generally speaking, products will be associated with related keywords . You can use keyword tools to select less competitive related keywords to guide consumers to click on the link to buy your product. In other words, if you can come up with unique keywords to attract more clicks, it will be easier to increase sales.

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Differentiate Your Product

You’ll probably find many of the same products on Amazon, maybe even the same picture description. So how do you stand out from the crowd? You need to differentiate the product, such as use enhanced and optimized better materials, add your own logo and so on. More importantly, you must add these differences to the image to improve visual impact, which can help you improve potential sales. Otherwise, your customers won’t notice the improvements in time.

Set Reasonable Profit Margin

On Amazon, the best selling products are priced between 20 USD and 50 USD, but you need to be aware that this price should include your profit margin. It is generally recommended that your profit margin be no less than 30%, so that you can still make a profit when promoting your products by providing discount coupons or something else.

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While choosing the best products to sell on Amazon is a tough task, it can make or break Amazon’s new FBA business. Finding a profitable product is key to being a successful Amazon seller. If you want to improve your chances of success on Amazon, you should spend enough time selecting your first product for Amazon FBA. If you want to know more information about this topic, please feel free to contact us.

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