📝 Building an Amazon FBA Business: Tips for Finding the Right Product to Sell
Are you interested in building an Amazon FBA business? It can be an incredibly rewarding experience, not just because of the profit you'll generate, but also because of the transferable skills and qualities you'll develop along the way. However, there is one part of the process that can be so challenging that it causes people to question whether the effort required is even worth the payoff. That part is finding the right product to sell.
Product research is difficult, time-consuming, and can be demotivating. But, there are steps you can follow to streamline the process, make it more enjoyable, and find a product to sell that you're happy with much faster than before. In this article, we'll run through my top tips to ensure that you stay motivated and find a product to sell with Amazon FBA.
📈 Set a Sensible Earnings Target
Before you start your product research, it's important to set a monthly earnings target that is sensible, achievable, realistic, and aligned with how much money you have available to invest in stock. The biggest mistake that beginners make when starting their product research is going into it wanting to invest the smallest amount possible and then expecting an earnings goal of upwards of ten thousand pounds profit a month. Starting with huge earnings goals rules out tons of products that don't have super high levels of demand and only leaves those that are in really saturated and competitive markets that all have a high risk of failure and require a huge amount of startup capital.
When I first started Amazon FBA, the amount that I had to invest was three thousand pounds, which I wanted to use to hit a monthly profit target of around 1,000 pounds. It was an amount that certainly wasn't going to be life-changing, but it was something that I knew I could achieve in the short term. It meant that pretty much every type of product on Amazon could still be considered when I was doing my product research.
🔍 Use Data to Analyze Demand
If you missed setting a monthly earnings target, you might find yourself in a situation where you've spent a ton of time analyzing a product to sell, and then you realize that it only makes 200 pounds profit a month when you're targeting a thousand. Or even worse, it has so much demand that, in order for you to be able to stay in stock and compete with the other sellers, you'd need to have tens of thousands of pounds to invest in stock, which you might not have or even be comfortable spending.
The quickest way of assessing whether any product's demand is enough to meet your earnings goal is to check the revenue figures for the niche that you're viewing are at least three times your monthly profit target. If they are, then you quickly know that the product probably makes sense for you to keep investigating further.
🤔 Don't Overanalyze
Convincing yourself to spend your hard-earned cash on an Amazon FBA product that you're not 100% sure on is one of the biggest obstacles that you're going to face. It's probably the main reason that many people never reach the point of selling on Amazon. Our brains are hardwired to be cautious and risk-averse, and for some people, that is especially so when it comes to spending money on a product to sell with Amazon.
This problem of looking for a 100% sure product with no risk at all means that you're forever going to be trapped in the product research phase because you're looking for something that quite simply doesn't exist. The product doesn't need to be perfect; it just needs to be something that your customers are going to be able to use and, on the whole, be content enough with their purchase and the price that they paid.
🕵️♀️ Rotate Between Product Discovery Methods
When going through the Amazon FBA product research phase, you'll undoubtedly experience feelings of overwhelm, isolation, and maybe even regret. It takes time and effort, and because of that, it can be quite boring, especially if you're doing it for hours on end and you're using the same sourcing methods day in day out, meaning that you're seeing the same and suitable product ideas over and over again.
To solve this problem and improve your chances of finding a product to sell, I recommend doing a maximum of two hours of product research a day to avoid burnout and rotating between product discovery methods every time you start a research session. That way, you'll be kept stimulated and not putting your mind into a trance as you endlessly scroll through the same ideas over and over.
🤝 Join a Support Network
When you're facing a challenge alone, you'll undoubtedly experience feelings of overwhelm, isolation, and maybe even regret. If you don't act upon these feelings, then the most likely outcome is that you'll end up quitting and never becoming an Amazon FBA seller. So, my best advice is that you try to beef up your support network as much as you can by joining Amazon FBA Facebook groups, following Amazon FBA topics on Twitter and Instagram, and if your budget allows, getting the help of somebody that's experienced in the field that can help give you the encouragement and support that you need to start selling as quickly as possible.
🎉 Conclusion
Finding the right product to sell with Amazon FBA can be a challenging process, but it's not impossible. By following the tips outlined in this article, you'll be able to streamline the process, make it more enjoyable, and find a product to sell that you're happy with much faster than before. Remember to set a sensible earnings target, use data to analyze demand, don't overanalyze, rotate between product discovery methods, and join a support network. With these tips, you'll be well on your way to becoming a successful Amazon FBA seller.
Pros
- Streamlines the product research process
- Helps you find a product to sell faster
- Provides tips for setting a sensible earnings target
- Offers advice on using data to analyze demand
- Encourages you to avoid overanalyzing
- Recommends rotating between product discovery methods
- Suggests joining a support network
Cons
- None identified
🌟 Highlights
- Set a sensible earnings target
- Use data to analyze demand
- Don't overanalyze
- Rotate between product discovery methods
- Join a support network
🙋♀️ FAQ
Q: What is Amazon FBA?
A: Amazon FBA stands for Fulfillment by Amazon. It's a service provided by Amazon that allows sellers to store their products in Amazon's fulfillment centers. Amazon then picks, packs, and ships the products to the customer on behalf of the seller.
Q: How much does it cost to start an Amazon FBA business?
A: The cost to start an Amazon FBA business can vary depending on the products you choose to sell and the amount of inventory you need to purchase. However, you can start with as little as a few hundred dollars.
Q: How long does it take to start making money with Amazon FBA?
A: It can take anywhere from a few weeks to several months to start making money with Amazon FBA. It depends on how quickly you can find a product to sell, how much inventory you need to purchase, and how quickly you can get your product listed and selling on Amazon.
Q: Do I need to have a business license to sell on Amazon FBA?
A: No, you don't need to have a business license to sell on Amazon FBA. However, you may need to register for a sales tax permit in the states where you have a tax nexus.
🌐 Resources
- [Alibaba](https://www.alibaba.com/)
- [AMZ Scout](https://amzscout.net/)
- [Fiverr](https://www.fiverr.com/)
- [Upwork](https://www.upwork.com/)
