Profitable. That’s the primary characteristic of a successful FBA product. You make your profit when you buy it.
Then, it has to sell. DUH!
You can make all sorts of buys of products, but if there is no profit in it, then it is worthless, or a drag on your bank account.
Now, it’s OK to make some unprofitable buys for the goal of learning how things work. And, in spite of all your care and marketing, some of your buys will end up being duds.
That’s part of the cost of doing business, and learning. If you don’t learn from it, Bad on You!
But, profitable products are what we’re looking for. You can find them, and you can be successful.
Here are some thoughts on finding profitable products.
- Review Amazon’s Top Sellers list for Categories you are interested in.
- Using the free Amazon Seller App (available for Apple and Android smart phones) to scan product UPC codes.
- You’re looking for products with the following characteristics:
- In the Top 5% of the top category Best Seller Rank.
- Less than 3 to 5 FBA Sellers
- Amazon is not one of the Sellers
- Sells for more than $10-15
- 3X-Rule: Sells for 3 times your cost – allows for your cost, 1/3 Amazon fees, and 1/3 Profit.
- Lightweight and small size
- Evergreen — not seasonal – sells year-round
- Gets used up and has to be ordered again
- Find these products:
- Around your house
- At “Clearance” or “Sale” sections of local stores
- Trade Shows (“for the trade” wholesale shows)
- Local merchandise marts
For an example, we have about 260 different items available through Amazon. Of these, 80% of our sales come from about 42 of them. The rest sold one or two, but still added to our sales and profit totals.
In the past 30 days, we sold more than $16,000 worth of products, and we had about $5,000 in gross profit. From this gross, we pay for the various other business expenses we incur – travel, advertising, more products, etc…
My neighbor has some “road rules.” One of them has to do with our produce crops.
Eat More, Eat Faster!
This rule converted for Amazon.
Find More! Find It Faster!