The first business of Alibaba Group, Alibaba.com is the leading platform for global wholesale trade serving millions of buyers and suppliers around the world.
Through Alibaba.com, small businesses can sell their products to companies in other countries.
Sellers on Alibaba.com are typically manufacturers and distributors based in China and other manufacturing countries such as India, Pakistan, the United States and Japan.
If you’re looking to establish a passive income and want to know how to find products to sell online, you’ve come to the right place! I’m Greg Mercer, the CEO and founder of the product research tool Jungle Scout, and I’ve personally used the guidelines below to launch several successful products on Amazon.
With all of the awesome promotions Alibaba.com is running for Super September, it’s the perfect time to finally nail down a product idea to start sourcing and selling! Plus with added benefits such as 50% OFF express shipping and product inspections, you can rest assured that you’ll get exactly what you want and in-time.
The key to successful selling on Amazon is pretty simple – sell a product that is in high demand, but with low competition. In fact, this can be said for anyone who wants to sell stuff online. If you position yourself in the marketplace where there is high demand and low supply (supply = potential competitors), then once you launch a private label product, you’ll be able to capture the existing demand immediately without competing against too many other sellers.
How do you find these products that have high demand and low competition?
Amazon’s catalog has millions of products to look through, so you’ll need some criteria to find that needle in a haystack. To simplify your product search, there are some key elements to keep in mind in order to determine the best private label products to sell.
Characteristics of a Good Product to Source for Amazon FBA:
1. Retail price between $25 – $50 USD
I discovered that this price range makes it easy to cover costs like Amazon FBA fees, cost of goods sold, and advertising costs. Any higher than $50, and your conversion rate–the percentage of people that see your product and purchase–drops.
2. Low seasonality.
You want to go after products that will sell all throughout the year and not just during certain seasonal periods.
3. Less than 200 reviews for the top sellers (less than 100 is excellent!)
If the average review rating is less than 4, that’s also an indicator that you’ll find room to improve the product.
4. Small (fits in a shoebox) and Lightweight
It’s much faster and easier to import via Air, so you want to consider something that won’t be too expensive to import. This will also keep your Amazon storage and shipping fees on the lower side, and out of the more expensive oversized category.
5. Can be improved.
You can use the feedback from your competitor’s product reviews to create an improved and superior product.
6. Simple to manufacture.
You don’t want to run into quality control or manufacturing challenges. Avoid glass, electronics, or highly complex products if you can. Additionally, avoid anything that goes in or on the body (think supplements and topical).
These are just guidelines, and a blueprint that we have used time and time again as a team of Amazon sellers. Every product has its own unique balance of opportunity vs competition.
How To Find Products, Fast!
There are a variety of product research tools out there to help you, and Jungle Scout is one of the options that will give you the power to scan through Amazon products by filtering key metrics such as price, demand, estimated sales, rating, seasonality, dimensions and more.
I typically try to create a list of 20 potential product ideas (download a budget and profit calculator here) that fit the criteria above, and then ask myself two questions to narrow down that list:
On the flip side, if you discover a high demand product where the sellers only have a handful of reviews, it might be worth getting into. Which is why we suggest looking for products with less than 200 reviews (with excellent opportunities below 100). And like I said before, you can use the feedback in reviews to improve a product that will be better than the competition.
Product research tools like Jungle Scout will also help you track products over a period of time to see if sales fluctuate or start trending during a specific season. Our sales estimator tool can also take any product category and Amazon Best Seller Ranking to estimate the sales volume, equipping you with even more info to make better business decisions.
The Bottom Line
Good product research takes time, and sometimes you put so much thought and preparation into the research phase you forget to just start doing it!
I always advise sellers to forget what you like. Don’t sell what you want to sell, sell what sells. Logically, this focuses on the metrics and ultimately reduces risks you might take with a product you’re passionate about. Therefore, it’s often easier (and quicker!) to profit.
But, the benefit of selling something you are passionate about is that you’ll know all about the product which makes the learning curve a little less steep, and allows you to really hone in on branding.
In the selling world there is no right or wrong. It all comes down to you and the best fit for your business, and the product research you put in to maximize your chances of success.
Once you’ve got your product idea and you’re ready start the sourcing process, our Million Dollar Case Study episode with Alibaba.com will provide you with a ton of insight and tips.
Get sourcing today so you can take advantage of all the Super September promotions on Alibaba.com!