The very first step when choosing a new product to sell on Amazon central is to follow your passion and interests. It may sound cliché but it’s incredibly powerful to start day one selling an item you care deeply about. The vast majority of sellers end up closing their doors and most of the time it’s because they did not want to put in the effort with making their product the very best on the market. If there is some sort of passion behind it, this all changes. No amount of time and energy is ever too much to invest in your product.
The second thing to consider is if your product idea truly disrupts the market and solves a customer's need. Don’t be like the majority of private labelers and simply slap on your logo to an existing selling item on Amazon seller central. That’s a fast way down the rabbit hole of slim margins and fighting for scraps. You need to go into it viewing your merchandise as something that will revolutionize the market. Think high end, premium design, something that will really stand out. The other aspect you need to keep in mind is that the more unique the goods are design wise; you will be able to acquire a design patent that will
protect you from copycats trying to vend the exact same design. Intellectual property protection is a powerful tool and one that many never think about.
Next is making sure your idea is low risk in terms of end-user experience. Things like knives,
baby merchandise and supplements are out.
Why?
Because they are simply way too risky! You basically want to avoid items that are prone to injury and anything baby related. A lot of new Amazon sellers see dollar signs but end up finding themselves in hot water via a lawsuit. It’s not fun but can be avoided by launching into the right item. The end goal is running a successful product-based business with as
few headaches as possible.
Something else to consider is the target selling price. Seller Central always has downward pressure on pricing because there is always a new batch of competitors popping up. You never want to be in a race to the bottom. There used to be a day when you could retail goods for $20 but those days are long gone. Right out of the gate, you need to think $50 or higher. The main reason being price compression over the long run. Down the road, you will be faced with competition offering much lower pricing and you will be forced to pivot a bit downward. Starting out with a healthy net profit margin will ensure you can
handle the price change someday.
Lastly, it's critical to launch a commodity where the existing competition is not flooded with sellers with thousands of reviews. Sellers with high quantity review counts have likely been around for years and you should just flat out avoid competing with them. It will take an unholy amount of capital to rise in the rankings and likely bleed you dry. This is a terrible situation for a new seller to be in. Avoid it at all costs!
In conclusion, if you follow these four top rules for researching product ideas, it will not only keep you out of trouble but will ensure that you will have a fantastic long term sustainable item! Isn’t that what everyone wants anyway?
PLUS don't forget to signup for my newsletter Amazon Insiders and start receiving weekly tips and hacks to help you dominate on Amazon!