Launching a new product on Amazon is like being thrown into the cockpit of a plane in flight. There are dozens of levers and flashing buttons but no clear indication of how to stay in the air.
It’s not enough to have an amazing product. And shoveling loads of cash into advertising simply does not work. The truth is, rushing what should be a detailed and incremental process quickly turns an all-but-guaranteed success into an expensive and underwhelming cold-start.
Successful product on-boarding requires a step-by-step plan that leverages Amazon’s algorithm and accounts for the unique challenges that new products are likely to face.
brands of all kinds can systematically prepare their products for marketability before implementing a comprehensive strategy to drive customer traffic and optimize performance.
The product choice is your key to success. If you select the wrong product this will kill all your business from the start.
7 hints to keep in mind when selecting your product.
#1. Avoid Items with High Competition
Too high competition lowers your profitability and gives you less room for maneuver, while too low competition most likely shows that there are not so many potential customers interested to buy the item.
#2. Avoid Oversized, Bulk, Fragile, or Too Heavy Items
Such products require special shipment and might have an additional price tag which would lower your margin.
#3. Avoid Seasonal Items
The products you can sell for Christmas or Halloween will not generate steady income and are in demand only at times. To create long-lasting profit, select products your customers will buy the whole year-round.
#4. Avoid Complex to Manufacture, Difficult to Assemble, Licensed, or Restricted Category Products
Such products can be easily damaged during shipping and can bring up a considerable portion of bad reviews. Make sure that nothing related to your item is a licensed or restricted category.
#5. Select Product with Sufficient Margin
No matter the fulfillment method, FBA or FBM, in both cases Amazon charges you fees. You will have a lot of other expenses for shipment, advertising, etc. Therefore, it is preferable that you do an accurate calculation to take those into account. Normally it is recommended that the fees are not exceeding 35-40%, use fba fee calculators to get an estimate on fees & profits.
#6. Analyze the Marketplace and Market Niche
Do the research on the market and see if the product is in demand in a specific marketplace. In different countries, you can encounter specific habits and tastes, regulations, or restrictions for the trade of different products.
#7. Estimate your Risks
Check financial parameters, see how much your product price is justified. Calculate best- and worst-case scenarios and estimate your startup funds. Normally it is recommended to have a startup capital of $5000 to initiate sales, though the entry fee seems quite low.
If you cannot convince yourself to purchase your item, others would not buy it, Focus on products that provides value & solve a particular problems customers face.