c) Follow trends
Google Trends is a website created by Google that analyzes the popularity of top queries across various regions and languages. The site uses graphs to compare the search volume of different queries over time. It’s an amazing resource available for free and can help you come up with product ideas in high demand.
Source: Google Trends
Simply type your product keywords in Google Trends and compare their popularity. A value of 100 indicates peak popularity, while a value of 50 shows that the term is only half as popular. Scores of 0 indicate insufficient data or search volume for the selected term.
Source: Google Trends
When searching for products on Google Trends, product search volume is a valuable statistic, but it’s not everything. Look for products with consistent search volume year-round instead of seasonal peaks. This way, you’ll guarantee more consistent sales.
Another option is to follow trends on social media platforms like Pinterest or Instagram. Pinterest allows users to “pin” images to boards accessible by anyone, making it a great place to find potential private-label products to sell. Users frequently post pictures of items of interest, including brand-name and white-label items.
Source: Pinterest
To begin, go to Pinterest.com and search for a product of interest. Create a list of products based on intriguing images. Then, compare these items on Amazon. The more pins an item has, the more popular it is. If you find a trending product that isn’t yet available on Amazon, you may have just hit the jackpot.
Another option is to conduct product research on Instagram by looking at trending hashtags. We recommend using your mobile phone for researching Instagram since browsing posts on Desktop shows limited search results.
Lastly, you can utilize third-party product research tools like AMZScout and JungleScout. These services can aid you in researching keywords, exploring databases for bestselling products that match your requirements, searching for suppliers, and comparing your prices with those of other sellers.
However, these tools are usually not available for free.
Source: AMZScout
Now you know how to research products and follow the most recent trends. But where do you buy products to sell on Amazon?
2. Decide on your product sourcing strategy
There are several product sourcing strategies to choose from, each with its benefits and drawbacks. Take a look and find the one that speaks to you the most.
The print-on-demand (POD) business model allows you to set up an online store and sell products, like custom t-shirts or custom hoodies, with your designs. Your POD partner provides the blank products and prints, packs, and ships the final product to your customers. You don’t have to worry about the technical side of running a store.
Source: Printful
The cool thing about running a print-on-demand store is that you can turn ordinary products into personalized items. This makes POD a well-suited business model for artists, designers, or anyone looking to expand their brand’s reach.
You need digital artwork and an Amazon Merch on Demand account to sell print-on-demand products with Amazon. With Printful, you can link your POD account to Amazon in a few clicks.
One of the drawbacks of POD is that you don’t have control over product or print quality, so it’s crucial to carefully choose your POD partner. We recommend ordering product samples before listing products in your store.
Find a list of the bestselling print-on-demand products to get inspired. To learn more, check out our article on How to Sell on Amazon with Printful’s Integration.
Read more: 20 Best-Selling Items on Amazon
Dropshipping
Both dropshipping and print-on-demand are popular business models. They’re similar in allowing businesses of all sizes to fulfill orders without holding inventory or investing in upfront costs. The main differences are in how involved you are in the product development process, and how strong of a brand image you want to portray.
Source: Unsplash
With standard dropshipping, the products you sell are ready-made and sent to your customers without any modifications. When a customer places an order, the drop-shipper selects the product from their stock, packs it, and ships it directly to the customer on behalf of the brand.
Amazon has specific rules for dropshipping that you want to familiarize yourself with for successful selling. These guidelines apply to standard dropshipping and print-on-demand dropshipping alike:
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You must identify yourself as the seller on invoices, packing slips, external packaging, and other items included with the product.
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You shouldn’t include wholesalers, suppliers, or manufacturers on product packaging materials or Amazon store product descriptions.
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You’re in charge of accepting and processing returns.
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You must comply with Amazon’s Terms of Service.
Remember to pick dropshipping products with high profit margins to make your business rentable. Find out more about Print-on-Demand vs. Dropshipping here.
Stocking products
If you want more control over product quality, inventory, and order fulfillment, try stocking products by ordering in bulk. You can choose to order products in bulk either from a wholesaler or directly from the manufacturer.
Source: Unsplash
This product sourcing strategy allows you to buy products at a lower price, which means higher profit margins. You’ll also be able to manage stock, make sure products don’t run out, and always ship on time. You can handle product storage, order packing, and shipping yourself or use Fulfillment by Amazon (FBA).
The downside to buying in bulk is that it calls for an initial investment, and you could lose money if you don’t sell all your stock. Plus, you need a strong grasp of consumer demand cycles to avoid overbuying goods that are no longer popular, like swimming suits when summer is gone.
Producing yourself
Do you have totally unique product ideas and craft skills? Selling handcrafted goods on Amazon can be a great option for new sellers.
Source: Amazon
To sell handmade items on Amazon, you need a seller account with Amazon Handmade. First, you’ll have to wait for Amazon’s approval, then they’ll waive the $39.99 monthly fee. Still, Amazon charges a 15% referral fee for Handmade sales, about 5% more than the total cost of selling on Etsy.
Source: Amazon
The bonus you get from selling your crafts on Amazon is the option to use FBA for stock storage, order packing, and shipping instead of handling everything yourself. A service that POD providers offer as well, by the way.
The profit to expect from selling handmade products depends on several factors, including the cost of raw materials, the tools you need to create them, the time spent creating them, and their weight and size. We recommend starting with product ideas that require low upfront costs.
A survey from 2017 showed that millennial consumers love giving or receiving handcrafted items as gifts. Browse Amazon’s handmade products to get inspired.
3. Calculate costs and product pricing
Once you’ve done your product research and chosen a sourcing method, the last step is to ensure your product idea is profitable. To make your business flourish, you need a healthy profit margin. As a general rule of thumb, a 10% profit margin is considered average, 20% is really good, but 5% is low.
When calculating the profit margin, don’t forget about taxes, shipping fees, selling fees, and any other Amazon fees. You’ll also have additional costs that vary depending on the product sourcing method you select. If you choose print-on-demand, check out this Guide to Printful Pricing.
