If you are a new seller or planning to sell online and at the same time confused on how do you get started? Well, now I am going to mention ten best strategies that you need to follow while selecting your product for selling on Amazon or other marketplace.
1. Can the product be easily be sold on Amazon?
A test I typically do first-The first test recommended for new seller is to check if the product you are planning to sell can be easily sold on Amazon or if it comes under restricted category? Amazon is a great place to get started and it is a good practice to start with category which does not require much approvals.
2. The 4-5x Rule
The Selected product should have scope to be sold at four to five times its purchase cost per item in order to gain some profit as there would be hidden costs, such as Amazon commission, branding, packaging, shipping, marketing, tax and so forth, which would reduce profit margin.
3.Choose A Selling Price Between Rs.500 to Rs.1500
Do not go for a products that sells cheaper than Rs.400 because would be very little profit margin left after considering all the marketplace and shipping charges . Also initially do not go for higher priced item, as there would be higher initial investment required to purchase inventory.Also there would be significant loss if the higher priced product is returned by customer. The best approach would be to choose a product which can be sold in the price range of Rs 500 to Rs 1500.
4. Choose products that are light-weight, small and easy-to-ship
Mostly Courier companies charge shipping charges based on weight or volume,so a heavy or large product would impose a very high shipping charges which would eat up your profit margin. For new sellers, it is advisable to start with products that are light-weight, small and easy-to-ship.
5.Can the selected product be sold as private level brand ?
To be a successful ecommerce seller, one should always go for Private level brand to eliminate competition. One should go for trademark registration and Brand registry to get the private label branding.The main advantage of Pvt label branding is that you get to set your own selling price.
6. Choose A Product under 1000 Amazon Best Seller Rank in their Main Category
The product you are planning to sell should be under 1000 Amazon Best Seller rank as these are the indicators that the product is selling good.
The Best Seller Rank can be found by entering the product ASIN or name in Amazon website.
7.Do not go for seasonal products
Instead of products that sell seasonally, prefer prefer to go with items which sell steadily all year round.
8.Existing similar product should not have review count of more than 300.
It is recommended not to go for products which have more than 300 reviews as it suggest the product has very high selling volume and there are already big sellers selling this product.Initially it would be difficult to compete these big sellers as they sell at very competitive price.
9.Does the selected product can be enhanced ?
You should also test if the product you selected has potential to be changed and improved. For example, concentrate on what consumers want and need, and pay special attention to product feedback, in special two star ratings and three stars. From these comes the most valuable knowledge and then customize your product to meet customer satisfaction.
10.Products That You would like to use for yourself.
Last but not the least, Start selling the items you really would love to use yourself.Selling goods that you believe in always makes the job more enjoyable.
These are the exact steps that you need to build your business online and make a good earning in my first year itself.