However, with the implementation of the Amazon A+ content feature, Amazon gives brand owners the opportunity to present their brand and products the way they want in order to maximize conversions.

In this article, we’ll tell you everything you need to know about A+ content; benefits, tips, and how to create A+ content on Amazon.

Related: How to Start a Successful Amazon Business

What Is Amazon A+ Content?

Amazon A+ Content is a tool that allows brands to enhance their product descriptions and brand pages. This usually comes in the form of high-definition videos, text placements, and enhanced photos in order to best convey a brand’s story. 

As mentioned above, promoting your products in an attractive way is very appealing to customers. Thus, adding A+ content to your product detail pages often results in increased traffic, sales, and higher conversion rates when done correctly.

There are two aspects of your account you can optimize with A+ content: brand content and product description. We go over both below. 

Brand Content

Brand content is often used to educate customers about the brand’s history, values, and product lines.

• Photos and text cards
• Carousel display with full-screen background 
• Links to brand stores
• Appears in the “From the Brand” section of the Amazon detail page

Product Description

Product description is the primary way to sell your items to consumers. In this section, you should include product details and benefits to help customers make purchasing decisions by answering their questions.

• Unique photo and text layouts
• Customized images and paragraph headers
• Product comparison charts
• Clear bulleted feature lists
• Appears in the “Product Description” section of the Amazon detail page

The price can vary depending on the type of A+ content your brand utilizes. There are two price points:

1. Self-Service Modules – at around $400 per listing, sellers with experience in branding and marketing products will benefit from this option to completely control the layout and design of their listing. 
2. Amazon Builds – at around $1500 per listing, you can send Amazon your product’s content and images and then they will choose the best design and layout for the listing for you.

Who Can Use A+ Content on Amazon?

Unfortunately, not everyone can use the A+ content feature. This feature is only available to Brand Owners and Professional sellers as part of the Amazon Brand Registry or other programs, such as Amazon Launchpad and Amazon Exclusives. So, if you want to use A+ content, you have to be part of those groups. 

What is Premium Amazon A+ Content? 

Amazon Premium A+ content or A++ content is one tier above the basic A+ content plan and is a great resource to further optimize your brand pages to be interactive and appealing to your buyers. If you have ever browsed Amazon, chances are that you have come across A++ content without even knowing it. It is often used by big brands and major vendors due to all the perks it comes with elevating the customer shopping experience.

The A+ content feature provides an additional 14 modules and allows up to 7 slots of content up to 1464 pixels wide. Other types of A++ content include:

• Attractive HD images and visuals, including images with hotspots and background text
• Full-width videos, including text.
• Interactive features, such as hotspot modules that interact with the consumers when they hover over the product features 
• Frequently Asked Questions (FAQs) to clear confusion and build trust with its appealing layout
• Fun scrollable carousel modules
• Engaging comparison charts with competing products

Benefits Of A+ Content

At such a high price point, there are many benefits to using the A+ content feature. In such a competitive marketplace, businesses need to do anything they can to be ahead of the competition. This is where A+ content’s value truly lies. 

Basically, the whole purpose of A+ content is to better market your products and differentiate them from your competitors, thus convincing shoppers to buy them. All in all, every seller on Amazon wants to increase their sales and conversion rates, which is what A+ content helps you do. 

Down below, we go over a few ways how your business can benefit from A+ content:

Utilize Emotive Storytelling and Content

One of the ways you can advertise your brand is by using the A+ Page to showcase your brand’s story. Whether it’s committed to sustainability, passed through the family for generations, or makes use of natural ingredients, branding your business is a great way to appeal to your clients and target specific demographics. Using A+ content, you can use text and images to promote your company and convey your mission statement. 

Grabs Buyers’ Attention

Potential buyers are generally used to looking at product listings that are cluttered or filled with paragraphs of text blocks. With such a dull format, it often leads to them having no intention to purchase the products. A huge plus of creating A+ content is that you can capture customers’ attention with high-quality images, videos, and creatively formatted text.

Give Customers a Better Understanding of the Product

In order to make informed purchasing decisions, many customers want to know as much as possible about a product to ensure it is what they are looking for. While unfortunately they cannot physically grab or hold it, A+ content allows brands to use detailed photos and videos in order to present their product and offer the customer the best buying experience. This allows them to have a high level of product understanding to make sure they don’t buy the wrong item for their needs, leading to fewer returns and better reviews for the product. 

Helps You Cross-Sell

Have you ever been browsing on Amazon and saw sections labeled “You might also like this” and “Other customers also bought”? Well, all products displayed there use Sponsored Ads, a byproduct of Amazon A+ content. Those sections are extremely powerful tools to introduce your products to people looking at your competitor’s listings or who don’t even know that you need your product yet. 

Another tool to help you efficiently cross-sell is comparison tables. Comparison tables often include competing products, meaning that you may be able to steal buyers right under your competitors’ listings. Along with that, if you feature comparison tables that only include your own products, you are able to introduce your customers to similar products of your own as well as make sure they don’t look for alternatives to your competitors’ brands. 

Makes Your Listing Easier to Skim

As we said earlier, buyers are accustomed to cluttered and overfilled product listings. With those types of listings, it is very easy to lose potential customers. While the listings may be highly informative, if the buyers cannot find the information they are looking for easily, then there is a high likelihood of them just not reading on. 

With A+ Content, you can break up large portions of text with images or design elements to make it easier for a potential buyer to skim and find the information they are looking for. 

All these reasons lead to more sales and conversions. With Amazon itself stating that listings using A+ content have 10% more sales due to the use of proven marketing strategies, A+ content is a worthwhile investment for your company. 

How To Create An A+ Content

If you want to know how to utilize Amazon A Plus Content for your brand, then read ahead to go through our step-by-step guide. 

Step 1: Sign in to your Seller Central account

Make sure you are brand registered, or else you won’t be able to use A+ content!

Step 2: Go to the A+ Content Manager

Under the “Advertising” tab, click on “A+ Content Manager.” 

Step 3: Start creating A+ Content

On the A+ content manager page, click on “Start creating A+ content.” When you click on it, you can then select between two templates for your A+ content: Self-service modules and Amazon builds for you. 

Step 4: Begin the Self-Service Module

You will be redirected to a page to start creating A+ content. First, you must enter the product ASIN you want to create content. Afterward, you will then see a list of options to build the layouts and modules. There are 12 different types—10 standard and 2 advanced options. You can only use 5 on your page, so choose wisely! 

After you’re done, click the “Continue” button and upload your image and content. You can then click on “preview” to see how your A+ content looks, click on “add to cart” and see the pricing details to pay.

Step 5: Begin “Amazon builds for you”

If you choose this option, you will be redirected to a page asking you to upload your text and images. After that, all you have to do is wait for Amazon to work its magic and do the job for you. 

Step 6: Name the Project

Make sure your project name is descriptive enough for you to understand and remember it. 

Step 7: Design the Project

Design the layout and upload your content. You will also get the chance to preview it to see how it looks before you publish it.

Step 8: Done!

Once you’re happy with how it all looks, click the “Finish” button, and you’re all set!

Following the steps above will help you create basic A+ content, but if you truly want to get results and create content that yields result consistently without fail, there are some things to keep in mind. Let’s call these the secrets for building a reliable Amazon A+ content template.

Best Amazon A+ Content Template

One thing you should always remember is that your A+ content is like a landing page. So the aim is to provide easily accessible information that persuades shoppers to make a buying decision in your favor.

As a result, the best way to approach creating content that generates conversions is to focus on the buyer and what you can offer them. We have simplified the A+ content into simple bullet points below:

• Show empathy — prove that you understand their needs and can provide a lasting solution.
• Create content around their frequently asked questions. You cannot do this without understanding your target audience, their needs, and the answers they are looking for.
• Show why your product is better than that of your competitors — in other words, why should they choose your product?
• Show them how to get the results they want from your product. Feel free to provide alternative suggestions from your product catalog and show your audience how to use them.
• Avoid using only images, and ensure you include up to 500 words in your content.

Best Practices for Creating A+ Content on Amazon

If you want to make the best A+ content to promote your brand and products, then here are some tips you should follow:

• Keep your content short and precise – shoppers are unlikely to purchase your item if they have to read through long lines of text before making a decision.

• Create an Amazon A+ content template and proofread it thoroughly before submitting your content – the worst thing you can do is have a copy with grammatical errors or spelling mistakes in it. 

• Check and make sure you follow the a+ image requirements, such as image size and resolution for any module you choose to use. Also, adhere to Amazon policies and category requirements.

• Keep your designs uniform – consistency is the key to compelling branding! Remember, that you’ll be creating designs across multiple landing pages; it’s like an Amazon A+ content template, so ensure that your designs remain consistent throughout.

• Use high-quality, detailed images. An A+ image is very important if you want to get results from your content. Even if you create an Amazon A+ content template, it will still be relatively incomplete without an attractive a+ image.

• Keep it more visual and less textual – to keep your content attractive, you should add a lot of visuals and keep a proper, appealing balance of the two. Use more a+ images and fewer texts or paragraphs.

We mentioned including an A+ image (or multiple images) in your content, but what makes up an A+ image? Here’s what makes up an A+ image.

• A+ image must be .jpg, .bmp, or .png in the RGB colorspace. CYMK colorspace is not supported. Also, individual images must remain under 2 MB. and the resolution should be at least 72 dpi. Avoid using animated images.
• You cannot use photos that are pixelated, unclear or include watermarks or tiny, illegible text when displayed on mobile devices.
• Avoid using image alt-text that does not describe the image and will not be useful to someone who uses a screen reader application.

Is Amazon A+ Content Free?

The regular feature is currently free for sellers and vendors. However, the premium A+ content is not free for vendors. While all the A++ content features are a huge asset for vendors, it is also an exclusive and extremely expensive invite-only program. The costs are usually negotiated between the brand and Amazon, but sellers can expect to pay $250,000 to $500,000 per year. 

What Not to do When Creating A+ Content?

Like tips, there is also a multitude of practices you should avoid when creating an Amazon A+ content template. There’s a lot, so buckle up to go through it. 

• Avoid giving any contact information about the company
• Never refer to your business as a distributor or seller
• Don’t mention any shipping information
• Avoid using quotes from third-parties
• Don’t use special characters like ® or ™ 
• Never use the same product photo more than once
• Don’t mention any warranties or guarantees 
• Avoid exaggerated claims, such as “Top” or “Best” 
• Don’t use excessive capitalization or bold fonts
• Avoid buzzwords, such as eco-friendly, green, or cutting-edge

Amazon A+ Content Guidelines

Creating A+ content is great, but you can only get the results you desire if you follow Amazon’s A+ content template or guidelines. The guidelines are listed below.

• It is recommended to use your A+ content within 1 month of confirming your purchase
• You will be charged more for A+ content for items that are already listed by other vendors
• The A+ content manager lets you see a preview of both desktop and mobile versions of your Amazon A+ content template on the same screen.
• Any text or images you submit for A+ content should be unique
• When your page goes live, you will only have 2 business days to make any changes or modification
• You can’t mention your competitors or the products that they sell on your listings
• A+ content is not indexed on Amazon, meaning it doesn’t affect your product listing ranking
• Amazon has the right to take down your A+ content page at any time, but this usually doesn’t happen.

Related: Listing Optimization Guidelines.

How to Track Your A+ Content On Amazon

Amazon recently launched the “Manage your experiments” feature; a split test feature that allows sellers to run A/B tests on their A+ content. This is the best way to maximize your efforts. Using this feature, you can decipher which images or text format yield the best conversions. Remember, the goal is to test and choose the best A+ content, this means you’ll need to create two A+ content templates, then decide what you want to track before you start testing.

Bear in mind that you cannot afford to make testing a one-off thing if you want to keep getting results from your A+ content. So, as time goes on, you will have to revisit your winning A+ content template and optimize it. It’s best to run your A/B tests for extended periods if you want to get reliable data, but if you just want to make a short-term decision, it’s okay to run short tests.

Conclusion 

Overall, Amazon A+ content is a great feature to creatively express your brand and story and increase your outreach. 

If you want to further maximize your sales on Amazon, we recommend using ZonBase. With tools such as Listing Optimizer and Reverse ASIN, it is easier than ever to optimize your listings to reach the top of the search engines. Best of all, it’s free to start. Try our free trial today! 

This is more exciting because monetizing your knowledge through digital products — ebooks especially — is one of the best ways to make online in 2024. 

So, if you would like to monetize your knowledge or just make money from your writing skills, you should consider selling books online. And where would you rather sell if not Amazon — the largest online marketplace in the world? Remember, books are one of the top-selling products on Amazon.

With KDP, you can create ebooks or paperback books from scratch without paying a dime. Plus KDP is not available for people who want to sell ebooks online. So, if you would prefer to have your book in print, the print-on-demand feature can make that possible too.

In this Amazon KDP guide for beginners, we will discuss everything you need to know about Amazon KDP. From benefits to drawbacks, we will lay everything on the table and then show you the step-by-step process of becoming the newest author on the block.

What is Amazon KDP?

Amazon KDP or Kindle Direct Publishing is Amazon’s online book publishing platform that allows people to self-publish ebooks and paperback books and sell them online. 

Imagine being able to create your own book all by yourself. No exorbitant publishing costs or the back-and-forth that often accompanies traditional book publishing. You get to save publishing costs and still make money from selling your books to Amazon customers. But apart from the obvious benefits of Amazon KDP for beginners, what else can you gain from self-publishing on Amazon?

Related: How to Sell Books on Amazon

Benefits of Amazon KDP

You already know what the principal advantage of Kindle Direct Publishing is — no startup cost and an already existing audience to sell to. But that’s not all there is to publishing books through KDP.

Easy Way to Publish eBooks and Paperback Books

Amazon KDP allows you to self-publish ebooks or paperback books for sale. Although most people are only familiar with the eBook publishing option, Amazon also has a print-on-demand service. The print-on-demand KDP option means that Amazon prints your paperback books and ships them for you once an order is placed. 

No Limit to The Number of Books You Can Publish

You can publish as many books as you want under one KDP account. You can also publish books across different genres and categories.

No Startup Costs — Only Profit Splits

Publishing books on Amazon KDP is completely free but you still get to make money from listing your books on the platform. You fix a price for your book and share the revenue with Amazon. The profit split is based on a percentage, which depends on the royalty option you choose and the size of your book. 

You Can Order Your Paperback Books Wholesale through KDP

Amazon has a KDP Select Publishing Service that allows authors to make paperback copies of their books and order wholesale quantities via your kindle direct publishing account. We will discuss the print-on-demand and KDP Select options soon.

Existing Buying Audience

Amazon is the largest online marketplace in the world and Kindle Direct Publishing gives you access to millions of Kindle customers. 

KDP offers a wide range of benefits for new and existing writers but that does not mean that the platform is 100% perfect. So, what are the drawbacks of Amazon KDP?

Drawbacks of Amazon KDP

Unlike the benefits, the drawbacks of Amazon KDP are limited. As a matter of fact, there’s only one prominent drawback of KDP and it’s the Kindle Direct Publishing Royalties.

You’re likely to make more royalties from traditional publishing than from Amazon KDP. This is because the royalty rates on KDP are not fixed and largely depend on certain criteria. But apart from this, the benefits of Amazon KDP far outweigh the cons. 

Kindle Direct Publishing Royalties

If you publish your books on Amazon, you make money from royalties. You get a percentage of the sale while Amazon gets the rest of it.

Amazon offers two different royalty rates: 35% and 70%. The 70% option is definitely more exciting but it’s not up to you to choose. You only get to earn 70% royalties when you meet the eligibility requirements for that royalty rate — the same goes for the 35% royalty rate.

Here are a few criteria for getting 70% royalty on your book sale.

• You must set the price of your ebook between $2.99 and $9.99.
• Amazon charges a delivery fee for each order; the fee often depends on the size of your eBook. Any book purchased from Amazon for between $2.99 and $9.99 is charged $0.15 per megabyte. You may be unable to predict the cost because Amazon compresses files, but you can get an estimate of the cost using the fee calculator.
• The ebook pricing must be at least 20% less than the list price of the paperback if you plan to sell physical copies.
• The ebook’s copyright must belong to you. You cannot be paid a 70% royalty if the book is set to public domain.
• To be eligible for 70% royalty on sales to clients in Brazil, Japan, Mexico, and India, your books must be signed up for KDP Select.

Here are the criteria for getting a 35% royalty on your book sale.

• Your book’s pricing falls between $2.99 and $9.99.
• You won’t have to pay a delivery fee if you choose the 35% royalty rate.
• This mostly applies to books with large file sizes.

This royalty rate structure only applies to eBooks, it’s quite different for paperback books. 

Amazon has a fixed 60% royalty rate for paperback books. After that, Amazon will deduct the printing expenses from your royalty, which vary depending on the number of pages, the type of ink used, and the Amazon marketplace where your paperback was purchased.

The equation below may help to determine the precise price you will receive for your paperback book:

(Royalty rate * List Price) – Printing Costs = Royalty received.

What this means is that, if your list price is $30 and your book is a 450-page paperback purchased from the US marketplace:

(0.60 x $30) – $4.85 = $13.15

The $13.15 is what you will receive as royalty from that sale.

If the publishing rates work for you, then you can go ahead to create your self-published book through KDP. 

How to Get Started With Amazon KDP

Ready to self-publish your book on Amazon KDP? Follow the steps outlined below and you will be on your way to becoming an author. 

Create Your Kindle Direct Publishing Account

Visit kdp.amazon.com and click on “Sign up”. It’s most likely your first account, so you’ll need to fill out all the fields — email ID, password, and also accept the terms of use. 

The page that comes up next is your kindle author dashboard.

Create a new Kindle e-book title 

Since you haven’t yet uploaded any book, there won’t be any titles available. So, the first thing to do is to create an eBook or paperback title by clicking on the “+Kindle eBook” or “+Paperback” option.

If you have to stop in the middle of inputting information, select “Save as Draft” at the bottom of the page. Also, choose the language you want to write your book in.

Fill in Your Book Title and Subtitle

This part of self-publishing requires you to provide crucial details like language, title, series, and author.

Verify Your Publishing Rights

Here, you’ll have to confirm if you own the publishing rights to your book or if you want to make it a public domain work. Remember, this is a requirement if you want to earn 70% royalty on your book.

Choose Relevant Keywords

Your keywords play a major role in your success on Amazon KDP. So, choose keywords that will make it easy for your target audience to find your book. Remember, there will always be competitors. 

The best way to find keywords for your listings is to use a keyword research tool. With the ZonBase keyword tool, you can uncover an extensive list of keywords that will help boost your visibility.

Select Your Book Category, Age Range, and Book Release Option

Here, you’ll have to choose the genre or category of your book. Think about this thoroughly before picking any option because this determines how your audience will find you.

Afterward, you’ll be prompted to pick the age range of your target audience. You don’t have to fill out this field unless your book is for teenagers or children.

Lastly, select your book release option — do you want to start selling your book immediately or do you want to leave it till later?

Activate DRM Rights

Activate DRM rights (Digital Rights Management) 

Digital Rights Management prohibits copies of your book from being made and distributed for free. If you activate DRM, unauthorized copying of your book will be considered copyright infringement.

Upload Your Book

Preview your book, then upload your manuscript and eBook cover. By selecting the Launch Cover button in the yellow bar, you can also build your eBook’s cover.

There are a couple of file options available, but it’s best to upload using an epub format.

Always utilize the most recent Kindle format to ensure that your book looks great on all e-readers. To be safe, just ensure you go through the KDP Content Guidelines before publishing your book.

Add Your ISBN

Since you’re self-publishing, you don’t necessarily need an ISBN. So, you can leave this field blank.

If you want to proceed, select “Save and Continue”. Your book will only be published when you click on the “publish” button.

Opt for KDP Select (You can skip it if you want)

You can decide whether to enroll your book in the KDP Select program or postpone it for later.

Also, choose the regions where you wish your book to be sold. It’s best to pick “worldwide” as it makes you more likely to reach more people. You can also choose a primary marketplace where you want your business to make the most sales, then target the marketplace.

Select a Royalty Option

Next, you’ll have to pick one of the two royalty options available. Your royalty rate will be displayed based on your list price.

Amazon KDP vs KDP Select

KDP Select is one of Amazon’s programs to help KDP authors reach a wider audience. Authors who sign up for KDP Select grant Amazon the right to sell their eBooks exclusively on the Kindle platform. This means that the author cannot sell their books on any other online platform.

The idea of reaching more people and making more money may sound enticing, but that would be painting the program to be perfect. Yes, the program is open to everyone regardless of location but it still comes with disadvantages. A few of the benefits and drawbacks are highlighted below.

Benefits of KDP Select

• Increased royalties in certain countries

You get 70% in royalty payments for sales in Brazil, Japan, India, and Mexico. If you are not a member of KDP Select, your royalties for these countries will be 35%.

• Access to more promotional tools

Authors who opt for KDP select get to run “countdown deals” which can be an avenue for more sales. The countdown deals allow sellers to offer their ebooks at discounted rates for a limited period — the discounted price will be displayed alongside the original list price and a countdown timer.

The kindle free promotion is another promotional tool that allows authors to offer their ebooks for free for 5 days out of every 90 days. The only downside is that this promotion does not come with royalties because the book will be sold for free.

• Kindle Unlimited

This allows people to pay a monthly subscription fee of $9.99 and read an unlimited number of books. You don’t earn royalties when you put your book up for kindle unlimited, you only get paid for every page that a customer reads.

Drawbacks of KDP Select

KDP select does offer cool benefits, however, the only downside is that you don’t get to earn as much money. You must also grant Amazon exclusive rights to your book — there’s a KDP select 90-day enrollment period within which your book can only be sold on the Amazon kindle store.

How to Promote Your Kindle Books With Amazon PPC

The Amazon marketplace is quite large and the competition is fierce — the same applies to the Amazon KDP platform. If you want to make money off KDP, you need to reach as many people as possible. Thankfully, Amazon offers a ton of advertising tools to help you boost your visibility and increase your chances of sales.

One of the best ways to boost your reach is to run pay-per-click ads or sponsored product ads on Amazon. 

Sponsored product ads typically require you to conduct keyword research to find keywords that your target audience would most likely use to find your book. Afterward, you can set up promotional campaigns to target your selected keywords. This way, when customers search using any of those keywords, your ad pops up right among the first set of search results.

PPC campaigns are great for visibility, but they cost money and can be a bit complicated to set up. So, you have to do everything right if you want to make money from your PPC campaigns. The best way to ensure you launch your PPC ad campaigns the right way is to use a keyword research tool and an Amazon PPC tool at the same time.

Related: Amazon PPC Best Practices for Sellers

With the ZonBase Amazon keyword tool, you can uncover an extensive list of high-converting keywords to boost your reach and help increase your chances of visibility. 

ZonBase also offers a PPC optimization tool — ZonPPC that allows you to adjust bids, change budgets and automate your PPC campaigns. It is a data-driven tool that offers a wide range of features to help you create well-optimized campaigns while lowering your costs and increasing sales. 

Apart from the ZonPPC and Keyword tool, ZonBase also offers 14+ Amazon seller tools for product research, listing optimization, and profit management.

You can try out all ZonBase tools for FREE when you sign up for a free trial.

FAQs about Amazon KDP

How long does it take to publish a book on Amazon KDP?

Self-publishing on Amazon KDP takes way less time than traditional publishing. If you follow all the steps listed above, you should be done putting up your book for sale in a few days. Of course, nothing is cast in stone especially if you don’t have all the time in the world. So, you may spend more time on some steps. Here’s where you should be thankful for the ‘save as draft’ option. 

Can you still use a traditional publisher after publishing on Amazon?

Of course, you can. Amazon does not intend to stop you from making money from your book in every way possible. However, you will only be able to publish and sell your book through other means if you retained the rights to your book. If you give Amazon full rights to your book, you will only be able to sell and earn royalties from Kindle.

Final Words

Self-publishing on Amazon KDP is not only for experienced authors, that’s why we created this Amazon KDP guide for beginners. Amazon KDP for beginners is not as much of a big deal as it is often made to seem. 

With KDP, you can create your own book from scratch and sell it. You don’t need to make any upfront payments or financial investments, yet you still get to make money. 

Good luck on your journey to becoming a new author!

Have you ever come across a very cheap item and the idea of reselling it for a profit popped into your mind? Well, there’s a business model called “Retail Arbitrage” that allows you to do just that.

Amazon is the best place to resell products. Many people purchase things elsewhere and then resell them there for a bigger profit. You can even develop an entire business on this idea if you approach it correctly. Do you want to learn how to start reselling on Amazon? How to buy and resell on Amazon? Follow this guide to learn everything you need to know about starting an Amazon resale business.

What is Reselling on Amazon?

In 2010, the marketplace was exclusively made up of resellers. Some simply used the dropshipping concept, while others already had a brick-and-mortar store or a standalone website.

The business model began with sellers who listed their products on the platform in a bid to reach a global audience. They were reselling products on the platform; hence, the term “Amazon resellers.” So, who are the resellers?

Resellers are people or businesses who buy items at a discount and then resell them on AMZN. This frequently occurs when items are purchased in large quantities and so have a cheap starting price from the manufacturer or distributor. 

The barrier to entry for resellers is very low, and resellers who use the right business approach can earn well from reselling on AMZN. Plus, there are different business models for people who want to venture into reselling on Amazon. Here’s a list of the business models you should consider using if you want to start an Amazon resale business.

Amazon Reselling Models

• Retail Arbitrage

Retail arbitrage is a business model in which a seller purchases items at discounted prices from physical stores or online stores (online arbitrage) to resell online. Some resellers start by selling clearance items on Amazon since they’re often at a discounted price. 

• Wholesale

Wholesale selling on Amazon is one of the best ways to make money reselling products on Amazon. It involves purchasing products in bulk from manufacturers and reselling them on AMZN in smaller quantities to retailers. 

• Dropshipping

The dropshipping model involves resellers serving as an intermediary between the supplier and the customer. So, the reseller (dropshipper) lists an item for sale, receives an order from the shopper, and then requests the manufacturer to ship it directly to the buyer. The difference between the manufacturer’s price and the retail price is the drop shipper’s profit.

Related: Dropshipping on Amazon

• Private Label

This reselling model involves manufacturing and branding already-existing, profitable products from scratch. So, to build a private label business, you’ll have to find a profitable product option, then contact a supplier to create the same for your brand. 

The first step to learning how to resell on AMZN for a profit is to choose the business model that suits you best. Once this is done, you can go ahead and become an Amazon reseller.

Is Reselling on Amazon Legal?

Absolutely! It is legal to resell products on Amazon. Contrary to what you may have thought, it’s okay to purchase products online or from physical stores and decide to sell them on AMZN. You do not need to be an authorized reseller for the brand to do this. As long as you purchased the item and it’s yours, you’re free to resell it on whatever platform you choose. Just remember that everything you buy from a store is no longer new, so you’ll have to mark it as “Used/Very Good Condition.”

If you want to list the products as ‘New’, you’ll have to purchase them from a wholesaler or manufacturer. Also, while you can sell any product you like, you should note that AMZN places restrictions on certain brands and products. Disney, Hasbro, Samsung, LEGO, and Adidas are among AMZN’s restricted brands for resellers.

Now, you’re probably wondering about AMZN’s products. Is it legal to resell Amazon products? ‘ Reselling on Amazon is legal, but it’s never wise to be a direct competitor with AMZN. So, it’s best to avoid selling products that AMZN already sells. Instead, consider reselling clearance items. You can start by reselling Target clearance items on Amazon.

Is Reselling on Amazon Still Profitable? 

Of course, reselling is one of the best ways to sell online, even if you have only a little capital or funding. Although the market is quite saturated, considering that there are many entry points, you can still start and earn well from reselling on Amazon. The question is, how do you step out from the crowd and secure a part of AMZN’s revenue for yourself? The secret is creating a unique brand and having an excellent branding experience. This way, you’ll gain a leg up on your competition and increase your chances of making a profit.

Building a successful resale business depends on your ability to build a strong brand. Of course, that is a lot of hard work. But, apart from strong branding, another way to excel as a reseller is to choose the right products. When it comes to choosing products, you may either sell low-competition products with no demonstrated success or high-competition products with proven success. However, before settling for a product option, be sure to conduct thorough product research and confirm that the product option is viable.

Reselling on AMZN is profitable, but the competition in the marketplace is stiff, and you’ll need more than a strong brand to outrank your competitors. A good strategy for beating the competition is to check them out and analyze their strategies or listings.

How to Start Reselling on Amazon

Before you can start reselling on AMZN, you must first go through a number of steps. We’ll provide a complete breakdown of the steps involved:

Create an Amazon Seller Account

AMZN offers two seller accounts: a professional and an individual seller account. A professional account costs $39.99 per month, whereas an individual account costs $0.99 per sale. An individual account is best for sellers who intend to sell fewer than 40 products a month. In contrast, a professional account is best for those who intend to sell more than 40 items per month. 

Thus, a professional account saves you money if you produce more than 40 sales each month. Furthermore, AMZN provides professional account owners with enhanced seller features like order reports, Buy Box eligibility, inventory tools, and more.

Find a Profitable Product

There are many product options on AMZN and it may be a bit difficult to find the bestselling ones. This is even more difficult for sellers who have no experience and do not know what to look out for when choosing products. Thus, it’s best to use Amazon software for product research. 

ZonBase is the best software for product research. We offer an effective set of product research tools that are sure to bring you the best product options at the snap of a finger. Using ZonBase’s ZonResearch and Hot Products tools, you can find the most profitable options in any product category. You can also access a list of authentic suppliers to source the products. Here’s a quick way to automate your product research using either of these tools:

• First, go to your ZonBase dashboard and open the ZonResearch or Hot Products tool
• Enter the marketplace and select your product category, Then, select a preset, you can start with the ‘Base hit’ preset option
• The tool automatically sets the filters for you, but if you have any specifications in mind, you can set the filters to your preferences. You can set filters based on prices, seller type, reviews, weight, profit, and even BSR ranking

After finding the profitable product options with these tools, you can then forward your top picks to an expert team when you sign up for the product validator service. With this service, the ZonBase team of experts will go through your product choices and validate them so you don’t choose the wrong products.

Retail arbitrage sourcing can be quite stressful and difficult because you do not get to see the products in person. However, you should get samples of potential products and examine them properly before listing them for sale. Here are a few other tips to keep in mind when choosing products to sell on Amazon. 

• Avoid items with very high competition; choose products with a wide profit margin.
• Avoid products that are big, bulky, fragile, or overly heavy;
• Avoid things that are only available during a specific season.
• Avoid products that are difficult to make, complicated to assemble, licensed, or in a restricted category.
• Check to see if the product is available in the marketplace you’ve chosen;
• Examine the financial metrics to check if the pricing of your product is justifiable.

When sourcing products, check out other eCommerce sites like Alibaba and Aliexpress.

Source the Products from an Authentic Supplier

It’s important that you source products from genuine suppliers to avoid losing money or losing customers as a result of low-quality products. Here are a few tips to look out for when choosing product suppliers:

• Examine your supplier’s performance; seek out a reliable manufacturer.
• Inquire about the product and manufacturing process
• Confirm that the provider guarantees quality and adheres to delivery deadlines.

Create a Product Listing

The next step to take after sourcing your products is to create your product listings. Your listings are the only way to draw the attention of AMZN’s over 300 million customers. Even if you have the best product in the world, customers will not be interested in purchasing it if your product listing is a jumbled mess with bad photos. In other words, your product images play a vital role in your conversions. If you have no photo editing skills, consider using a photo enhancer. 

We can edit your pictures professionally when you sign up for the ZonBase photo enhancer service, and it’s all you need to take your listings from no results to high conversions in no time. All you’ll have to do is send in your product images and wait for the team to retouch them. Apart from your product images, there are other things you should pay attention to when optimizing your product listings. 

An optimized product listing should contain the following elements:

• A+ content
• 20 to 30 reviews with at least a 4-star rating
• High-quality images/video
• Highly-ranked keywords; clear product descriptions and informational bullets

If you wish to sell a product that already exists on AMZN, you need to match it to the existing listing.

Promote your Product

If you want to make sales, you must be intentional about promoting your products on AMZN. You’ll need a marketing strategy to effectively promote your product. The following elements should be included in an effective marketing strategy:

• Increase your presence and visibility.
• Track reach, engagement, impressions, clicks, CTR, CPA, CPM, and ad frequency in your ad campaign data.
• Analyze the effectiveness of your sponsored product campaigns.
• Creating and evaluating ad campaigns
• Target the Buy Box
• Keeping an eye on your ACoS
• Using all methods to increase conversions, such as asking customers for ratings and removing unfavorable reviews.
• Focus on off-Amazon advertising efforts
• Getting influencers to participate.

Monitor your Business Growth

Beyond product research, keyword research, and listing optimization, there are other important business processes that you must engage in for your business to grow. One of the most important processes is tracking your business expenses. There are many costs involved in running a business, especially if you use FBA. And if you’re not careful, these costs will eat into your profit margin. 

Hence, it’s important that you stay on top of your expenses and monitor them closely. You can use an analytics tool to do this, and ZonBase offers the best analytics tool you’ll ever come across. Using the ZonBase profit tool, you can track your expenses, monitor your profit margins, and even track your inventory.

How to Be Successful at Reselling on Amazon: 6 Helpful Tips

Running a resale business is not difficult if you approach it in the right manner. To build a successful resale business on AMZN, you’ll have to focus on your pricing, branding, products, and seller ranking. 

Let’s take a look at how you should optimize each of these areas.

Choosing the right products

Success on Amazon, regardless of the business model, begins with choosing the right products for your store. And there are two viewpoints to choose products from. You can either choose to sell:

• No-proven success and low competition products
• Proven success and high competition products. 

The first option is the best one for new sellers. Of course, it is important that you carry out in-depth product research to find out hidden details about any product or product category. What are the profit margins? What’s the market demand like? These are questions you should answer before listing any product for sale. Selling in a category with no proven success is a lot of risk. Still, it increases your chances of winning the buy box. 

What is the buy box? The buy box is located on the right side of the product detail page where the add to cart button is located. It can help you solidify your position as a top seller in your chosen niche without having to worry about competition.

Related: How to Win the Amazon Buy Box

Source high-quality products

When it comes to quality, it doesn’t matter if you sell low competition products or high competition products. The items you sell will ultimately define your brand. As a result, high-quality products can easily portray you as a high-end reseller, allowing you to increase your prices while increasing your margins. 

Brand reputation is important, especially if your goal is to gain returning customers. Poor quality goods may save you money while sourcing them. But, in the long run, they’ll result in a large number of returns and negative feedback, which will hurt your business and account health.

Choose products with high-profit margins

It’s very possible to get interested in a high-quality item and then discover that it has really low-profit margins. Having high-quality products is great. But, if you’re not making money, then the whole essence of starting an Amazon resale business is defeated. 

When choosing products and negotiating with suppliers, ensure you’re armed with all the important facts. Don’t leave out any costs or fees when fixing product prices. Also, keep your profit margin at a minimum of about £5.00 per unit.

Keep your prices competitive

We all know that competition on AMZN is fierce. And if you choose products with proven success and high competition, breaking into the market may be a bit tough.

However, because proven products have proven sales, sourcing and selling in-demand products is likely to bring in rapid sales and increase your Amazon BSR.

For most in-demand product categories, you’ll be up against other established sellers, so you might not make sales immediately. And this is why it’s important that you price competitively. For a start, you can consider pricing your products below the market price. By fixing low prices, you stand a higher chance of winning the buy box and attracting your audience. Still, you should avoid being at the extreme of low pricing because this may give off the impression that your products are of low quality. 

Use Amazon FBA

Amazon FBA, or Fulfillment by Amazon, is a great way to boost your seller ranking and succeed as a reseller on Amazon. Resellers who use FBA will not have to worry about major business processes like storage, packing, and shipping because Amazon will handle all these processes. AMZN will also provide customer service and manage returns on your behalf when you sign up for FBA. 

Furthermore, using FBA can help you save costs as well as increase your chances of winning the buy box. Even better if your competitors are not signed up for the service. However, since the service isn’t free, you’ll have to factor in the costs involved when fixing product prices. At all costs, avoid letting costs eat into your profit margin. 

Have an Inventory Strategy

Your inventory is the lifeblood of your resale business, but many sellers often forget this. If you have piles of excess merchandise taking up space and tying up capital, it’s a needless cost that will eat into your profit margin. A shortage of stock, on the other hand, could mean you won’t be able to fulfill your clients’ requests.

Knowing your numbers is one of the most important aspects of reselling on Amazon. Carry out a detailed analysis of your calculations and make a sales projection. This way, you’ll know exactly how much inventory you’ll need and when you’ll need it. ZonBase Amazon software also provides a profit and financial analysis tool that provides an estimated restock date to help you track your inventory and avoid running out of stock.

What Tools Can I Use to Manage an Amazon Resale Business?

As you can already tell, managing an Amazon resale business is not as easy as it seems, and there’s a lot of work involved. However, if you use Amazon FBA, you can outsource the greater part of this work to AMZN’s efficient and professional team. The rest of the work involves product research, listing optimization, and promotional efforts, and these can be automated using AMZN software. 

The ZonBase software provides a complete set of Amazon seller tools to help you manage crucial business tasks like product research, listing optimization, and even PPC Automation.

In addition to the product research tools we mentioned earlier, Zonbase includes a set of keyword research and listing optimization tools. These tools work hand-in-hand to help you create well-optimized listings that guarantee conversions and sales. 

ZonBase also offers PPC automation and analytics tools. With the analytics tool, you can track all your business expenses and profits and even get an estimated restock date for your inventory so that you don’t run out of stock. Your ads and promotions are not left out, as they can all be well-automated and managed on your behalf when you sign up for any of the PPC Automation services. 

You can also significantly improve the quality of your listings by using the ZonBase Photo Enhancer service. The photo enhancer service allows you to send in a selected number of images to be worked on by an expert team. Sellers and resellers who do not have any photo editing skills will find the service useful.

Explore the software for free.

Conclusion

Some other questions that sellers have are: Is dropshipping from Aliexpress to Etsy the same as retail arbitrage on Amazon? Well, the answer is no. Although both business models allow you to resell products at a higher price, they work differently. Also, the platforms are different, so the terms and restrictions will differ too. 

Ready to start reselling on Amazon? Don’t waste any time! Go ahead, create your account, use the tips that we have provided in this article, and you’ll be on your way to succeeding on Amazon as a reseller. 

On January 1st, 2022, Amazon implemented new changes to the restock limits. In this article, we go over the following points: 

• What are Amazon restock limits?
• How are restock limits different from storage limits?
• How to calculate your Amazon restock limits?
• What changes were made to the Amazon restock limits?
• How can you better manage your Inventory with restock limits?
• How to increase your Amazon restock limits?
• Frequently asked questions about quantity limits

Read on to find out how Amazon restock limits will affect your Amazon FBA business! 

What are Amazon Restock Limits?

As mentioned earlier, Amazon restock limits basically restrict your entire store’s product quantity and storage. However, this didn’t used to be the case. 

Before, Amazon used to only limit how many units you could have for each product listed. This meant that sellers could potentially have unlimited storage as long as they had different product listings and ASINs. 

However, in April 2021, this all changed. Amazon started imposing account-wide restock limits instead of its former product-level limits. Now, instead of having a capped number of product units, Amazon now regulates the amount of inventory you can store at their fulfillment centers. 

How are Restock Limits Different From Storage Limits?

While they are very similar, Amazon restock limits aren’t exactly the same as storage limits. 

Basically, the two serve different purposes. Restock limits are designed to manage the inflow of inventory while storage limits determine how much physical space each seller gets in AMZ fulfillment centers.

While restock and storage limits are obviously related, it is important to know the difference between the two. 

Essentially, Amazon restock limits dictate your maximum unit quantity and storage limits regulate the volume allocated to you in an FBA fulfillment center. 

So, if you have a high restock limit but low storage limit, then you can sell smaller products in order to fit all the units in the restricted space. 

How to Calculate Your Amazon Restock Limits?

While storage limits are determined by a seller’s Inventory Performance Index (IPI) score—which measures how efficient and productive the seller is in managing their FBA inventory—, restock limits are calculated based on various factors. 

This includes but is not limited to your historical sales number, seasonal and peak selling periods of your products, as well as the forecasts for your ASINs and the new selections you carry. Essentially, it is determined by your forecasted demand at any given moment and thus can change throughout the year. 

You can easily view your Amazon restock limits on the Seller Central platform by expanding the Restock Limits monitor at the bottom of the page. 

Your Restock Limits monitor displays a lot of helpful information. While it can be confusing at first glance, it is important to be able to decipher the information and how it affects your store. We go over it all below.

Restock Limits Monitor

The first thing you see on the Restock Limits monitor is a bar graph that shows the maximum number of units your business can have as well as how much of that you are already using.

Under the bar, you can see your store’s utilization quantity, maximum inventory level, and maximum shipment quantity. These are all confusing terms, but they are actually quite simple once you know what they mean.

Your maximum inventory level is your restock limit. It’s calculated based on your past and forecasted sales and is adjusted by your fulfillment capacity. 

Your utilization quantity is basically how much of that limit you are using, or the number of units you currently have in your current inventory and shipments to fulfillment centers. This includes your shipments with the Receiving, In Transit, and Working statuses. However, inventory pending removals and any reserved inventory are not included in the utilization calculation. To view the utilization by product type—such as standard-size or oversize— you can click to review your utilization by storage type.

Lastly, maximum shipment quantity is how many units you can ship to Amazon fulfillment centers at that given point. It is calculated by the maximum inventory level minus your utilization quantity. 

What Changes Were Made to the Amazon Restock Limits?

On January 1st, 2022, Amazon made some changes to both restock limits and storage limits. 

The IPI threshold for storage limits was reduced to 400, meaning fewer  sellers will have storage volume limits. 

Along with that, Amazon increased the restock limits during the holiday season to account for the popular period for sellers. 

How Can You Better Manage Your Inventory with Restock Limits?

Down below, we go over some tips to help you best manage your inventory with Amazon restock limits. 

1. Reduce utilization

Since your maximum shipment quality equates to your maximum inventory level minus utilization, reducing your utilization can help you have more room for new shipments. 

You can do this by decreasing the amount of inventory you have in fulfillment centers or by canceling open shipments for products that you do not intend to send to Amazon. 

A great way to keep track of your utilization is by looking at your store’s Shipping Queue. In the Shipping Queue, you can view or cancel any of your open shipments. All you have to do is click the shipment name (or View shipment or Track shipment), then select Cancel shipment or Delete shipment. 

2. Restock popular products to increase sales and grow your business

As we mentioned above, increasing your sales leads to a higher restock limit. So, by restocking your popular products, you can sell them more and thus grow your business.

If you go to Restock Inventory on your Seller Central platform, you can view your recommended replenishment quantity for each SKU and restock them as soon as possible. 

This tool is handy to help you plan how much inventory you should send to the Amazon FBA fulfillment centers and when to send them. These recommendations are shown in two columns: Recommended replenishment qty and Recommended ship date.

You are also able to see if your recommendations are within your Amazon restock limits by storage type!

3. Reduce your inventory in fulfillment centers

Probably the most straightforward of all the tips, reducing your inventory in fulfillment centers will allow you to have more capacity for more units. 

There are a few simple ways you can do this. 

First, you can increase your sales. Under Manage Inventory Health, you can view recommendations on how to increase your sales. This is a great tool as it can help you make the correct decisions about your excess and aged inventory. Along with that, you can use Multi-Channel Fulfillment to sell your inventory on other sales channels, such as your own website. 

Secondly, you can request to have your inventory disposed of by creating a disposal order. You can do this under the Manage Inventory page.

Lastly, you can request to have your inventory returned to you by creating a removal order under the same tab. 

How to Increase Your Amazon Restock Limits?

Now that we have gone over how to best manage your inventory with Amazon restock limits, it is only normal that we go over how to increase your Amazon inventory space. 

Of course, every seller would want to increase their Amazon restock limits in order to best grow their business. However, with how fickle the restock algorithm is, how would you go about this? 

With the restock limits being based on many variables—such as sales volume, your historical IPI scores, and their available fulfillment center capacity—there are really only two factors you can really control as a seller. We go over both below. 

1. Sales Volume

In order to determine your restock limits, Amazon looks at your last 3 months of sales and calculates it based on that. Generally, the more you sell, the higher your restock limits are. So, by increasing your sales, you can also increase your limits.

Two easy ways to increase your sales are through Pay Per Click (PPC) ads and by driving external traffic. Along with this, you should always keep your most popular products in stock at the recommended levels to meet customer demand and maximize buyer satisfaction. 

2. Inventory Performance Index (IPI) Score

As we said before, your IPI score affects both your Amazon restock limits and storage limits. 

Don’t know what the IPI score is?

Simply put, your IPI score is a scale that Amazon uses to measure your inventory performance over time. Basically, it is a gauge of how efficient you are in managing your FBA inventory. 

You can view your IPI score in the inventory Performance dashboard on the Seller Central platform. 

There are many ways you can improve your score, which we go over down below. 

Reduce your excess inventory

A key factor of a good IPI score is maintaining a balanced inventory level between on-hand and sold inventory. You want to avoid having stale inventory, meaning that you should try to sell your excess inventory as soon as possible. You should do everything in your power to make sure you don’t have overstock inventory just sitting at the FBA warehouse. 

You can do this by either constantly changing your pricing strategy for your products to meet demand as well as reducing your inventory according to your sales history. 

If you already have excess inventory, you use Amazon’s FBA Liquidations program, which helps sellers reduce their inventory through a wholesome liquidation company. Basically, you can choose to sell your surplus inventory to these wholesale companies for a fee, which then cannot resell them on Amazon. 

Along with that, you can use the similar Amazon Outlet program to get value from stale inventory. 

Improve Your Sell-Through Rate

The FBA sell-through rate is calculated by dividing the number of FBA units sold and shipped over the past 90 days by the average number of units in Amazon fulfillment centers during that period. You can improve your sell-through rate by constantly maintaining the right balance of inventory. For instance, make sure you only send in inventory that you can quickly sell and restock later. 

Fix Stranded Inventory

Another large factor of your IPI score is stranded inventory. It is vital that you fix all your stranded inventory immediately otherwise your score may take a dive. 

On Amazon’s Seller Central, you can find your stranded inventory report. To access this, you hover over the Inventory Tab and select Manage Inventory. 

You should be checking your stranded inventory weekly if not daily to make sure your IPI score isn’t affected. 

Related: 6 Top Causes of Amazon Stranded Inventory and How to Fix Them

Frequently Asked Questions about Quantity Limits

Do my Multi-Channel Fulfillment orders affect my restock limits?

Yes! Your Amazon restock limits are based on your forecasted and past sales data, which includes Multi-Channel Fulfillment orders.

Will my FBA products still be subject to ASIN quantity limits?

Most FBA products will no longer be subjected to ASIN quantity limits. This includes products that fall under the Standard-size, Apparel, Footwear, and Oversize storage types. These types of inventory can be sent to Amazon within a storage type subject to restock limits.

Can I change the storage type of a product?

No. Sellers cannot control the storage types of their products. Storage types are given based on your products’ characteristics. 

Can I switch Amazon restock limits for one storage type to another?

No. Like the answer above, storage types are determined by the product’s characteristics and sellers have no control over them. 

Will Amazon change the inventory quantity limits again?

Most likely. It is possible for AMZ to change its restocking limits at any time. Just last year they changed them twice. While we don’t know when or if they will change the restock limits again, we suggest keeping an eye on the News section of your Seller Central account for any updates. 

Conclusion

There you have it—everything you need to know about Amazon restock limits in 2024! 

If you want to make the most of Amazon FBA, then should use Zonbase software suite to help you run your business smoothly. Zonbase is made up of 20+ tools that perform product research, keyword research, listing optimization, and financial analytics.

Because Amazon is a very competitive marketplace, third-party sellers make it a priority to maintain a pristine reputation. Amazon seller ratings are very important when it comes to attracting new customers and keeping old customers coming back for more. Some business owners even devote an entire division just to maintain their pristine Amazon seller ratings.

Because Amazon seller ratings are great indicators of credibility, customers often use them to decide whether to make a purchase or not. To the customer, seeing a seller with high ratings means that they are consistently providing great service. And this is something that could genuinely affect conversion rates for third-party sellers.

In this article, we will go over what Amazon seller ratings are all about. We’ll discuss how the Amazon seller rating calculation is done. Finally, we’ll also share some defining factors that affect your Amazon seller rating calculation. Hopefully, this will give you an idea of how to boost your reputation and enjoy the benefits that a great rating brings.

What Are Amazon Seller Ratings?

Simply put, Amazon seller ratings encompass the overall performance of third-party sellers and merchants on AMZN. The rating system is based on a variety of factors that collectively form your seller ratings. Some of these include communication with customers, delivery time, product warranty, ease of refund, product replacement terms, and so on.

The parameters that encompass the Amazon seller ratings allow customers to make more conscious buying decisions. It goes without saying that a customer is more likely to purchase from a seller with a good reputation, right?

This is the reason merchants make it a priority to improve their rating scores. If the rating directly affects the conversion rates, it only makes sense to make sure it stays high at all times.

To be fair with their merchants, AMZN gives everyone a fair chance to prove their worth to the customers. To even the playing field, Amazon ratings and reviews from the last 365 days are used to assess the final Amazon seller reviews score.

Related: Best Products To Sell On AMZN

How To Check Seller Rating On Amazon

To check seller rating on Amazon, simply hover at the star icon that you can find under the product name. There is a prompt there that shows how many ratings the product has and the overall seller rating for that product on AMZN. You can find this on any product listing that is posted on AMZN.

What Is The Difference Between A Rating And A Review? 

Before we discuss the defining factors that affect the Amazon seller rating calculation, let us first differentiate ratings from reviews. The terms are often used interchangeably, but there is a massive difference between the two.

Seller Feedback (Ratings)

Ratings are provided by AMZN based on different metrics that help calculate the quality of services that a seller provides. Ratings have more to do with the seller than the actual product itself. 

For example, a product could be broken or damaged. But if the seller communicates well and offers a replacement, then the customer may still opt to leave a positive Amazon seller feedback. 

So what is a good seller rating on Amazon? Any rating that is above 4+ stars is already considered good seller feedback.

Customer Review

A customer review, on the other hand, is the direct experience of the buyer with regard to the product itself that was bought. Customers can be thorough in leaving a review, and this usually involves rating the product based on its features.

For example, if a customer buys a Dog Chew Toy, then the review might revolve around different product features such as longevity, durability, choking hazard safety, and so on. In a way, a review represents the direct Amazon comments from actual customers who bought the product. It speaks more about the product that was bought. It does not really focus too much on the merchant’s quality of service.

So the next question is: how to get seller ratings on Amazon? And how do you go about leaving a product review?

To leave a rating or a review, all you have to do is log in to your AMZN account and go to your Order History. Check the Order Details of the product that you bought. You’ll be redirected to a dedicated order detail page where you can leave a rating (seller feedback) or a review.

However, take note that not everyone is eligible to write a product review. There are certain limitations that you have to unlock first before you can leave one. AMZN sets a number of minimum eligibility requirements to write a review. This includes the number of purchases made in the past 3 months, the number of buyer feedback received, and so on.

What Are The Different Factors That Play A Role In Seller Ratings?

Are you interested in learning the different factors that play a role in seller feedback ratings? Let’s discuss them in depth below.

Delivery Time

It goes without saying that delivery time plays a huge part in your overall seller feedback score. Some customers need to have their products delivered at a certain date. They are even willing to pay an AMZN Prime Subscription just to get their products delivered faster. So if you want a pristine score, make sure to deliver your items as per the agreed-upon stipulated time.

Order Defect Rate (ODR)

Some orders might arrive with a defect, and this will leave a bad taste in the customer’s mouth. The Order Defect Rate is the number of orders with defects divided by the total number of orders you have delivered. Keep this number as low as possible if you want to avoid getting your seller account revoked.

Tracking Update Rate

Most customers like to see constant updates on their orders. They appreciate a constant tracking update because it gives them an idea of where their shipments are. If you frequently update your order tracking information, customers will love you for it.

Refunds

Refunds are part of any e-commerce business and can’t be avoided. But that doesn’t mean that you can’t lower your refund rate, right? Always ensure that your items are well-packed, in good condition as described, and not damaged. This will minimize your refund rate and reduce dissatisfaction among your buyers.

Late Shipment Rate

How many of your customers’ orders arrive on time? How many of your shipments are late? This metric calculates the rate of your late shipments and averages it over the shipments that arrive on time. Keeping this number low will help increase your overall score.

Negative Feedback

Needless to say, you don’t want to have too many negative reviews and feedback on your profile. Yes, some customers are just hard to please, and having negative feedback makes your listings more believable. After all, having perfect seller feedback is more suspicious, especially if you are selling thousands of products. However, you need to keep the negative feedback at a minimum.

Customer Response

Do you respond to your customers as soon as they send you a message? Or do you wait more than 24 hours before giving a reply? The faster your customer response is, the better this metric will be scored in your favor. Make it a habit to always respond within 24 hours. If possible, hire someone whose sole job is to answer customer queries from your store.

Out of Stock Cancellation Rate

Do you keep on running out of inventory? Were you forced to cancel your AMZN FBA fulfillment because you ran out of stock? If you are always running out of products to sell, it will also affect your overall Amazon seller ratings.

Returns Due To Dissatisfaction

Do your customers keep on returning your products because they don’t come as advertised? Are they are dissatisfied with the quality of the items you are selling? Amazon marketplace sellers need to ensure that their customer dissatisfaction rate is at a minimum to keep their selling privileges.

Importance of Having Positive Amazon Seller Ratings

As we have mentioned in earlier sections, the most obvious reason for maintaining a positive seller score is to attract more customers and improve your conversion rates. It’s a no-brainer that customers look at seller feedback scores first before clicking the checkout button. 

However, there are also other reasons why you should aim for a consistently high seller rating score on AMZN. Not only will this give you an advantage when it comes to conversion rates. Ultimately, it will also give you an edge over your competition. 

Here are some reasons why it is important to have a good seller feedback rating:

Improved Buy Box Position

Not many merchants know about this, but this is a big reason why getting a good seller rating is essential. Having a good rating can increase your chance to win the Amazon Buy Box, allowing you to get more sales. 

The Buy Box is the place where recommended products are promoted by AMZN during a customer’s checkout. If you are promoted to the top Buy Box position, you will attract more customers who are ready to make a purchase.

Better Relationship With AMZN

Another reason why you need to maintain a high rating is because of improved relations with AMZN. Having a good relationship with AMZN gives you more opportunities for your business. It also allows you to expose your business to a wider audience. 

AMZN loves sellers who make their customers happy because it makes customers come back for more.

Better Conversion Rates

It is a no-brainer that people with better seller ratings and good customer feedback are trusted more by the customers. If you are a buyer, would you buy from someone who has lots of negative feedback and a poor customer satisfaction rate? You’d rather look for another seller who gives better customer service, right? 

People will always look at the seller’s feedback after checking out the product details. And having lots of Stars and positive comments will give you a higher chance to convert the sale.

3 Tips To Increase Your Amazon Seller Ratings

Do you want to know some tips, techniques, and strategies that can help you increase your ratings? There are no magic pills involved in this process, but it is definitely possible to achieve this. To help you out, we have laid out some of the tips that have worked wonders for us through the years:

Be Proactive In Your Customer Communication

Nothing makes a customer happier than getting constant updates and communications from the seller. Don’t wait until a customer gets pissed off or annoyed before you reply to their inquiries and questions. Especially if the questions are valid like tracking number location, missing parts, etc. Show sincerity and prompt action – customers will remember that and come back to you next time.

Try To Be Competitive In Your Pricing

Yes, it is important to make profits and keep your income flowing. But if you don’t update your prices to reflect current competitors’ prices, you won’t be able to attract customers. In fact, customers might even look at your store in a negative light if you are selling prices too high compared to your competition. 

Make it a point to set an updated price from time to time, especially when a big holiday season is coming in.

Keep Delivery Times Accurate

We cannot stress enough how important keeping your delivery and shipping times accurate is. Some people purchase things and expect them to be delivered for a special occasion. If your delivery is delayed for whatever reason, the customer’s buying experience will not be a happy one. 

Because of this, make sure to avoid any delays. If you are fulfilling orders by yourself, always pack your shipments right after the orders are made so you can minimize possible delays.

Conclusion

Keeping your customers coming back for more is something that you need to learn how to accomplish as a seller. Without loyal repeat customers, it would be hard to maintain a healthy business. Especially in a competitive environment such as AMZN. Hopefully, the information we shared in this article can help improve your Amazon Seller Ratings.

If you need an automated software solution that can help you improve your AMZN business, you should definitely take a look at Zonbase. Zonbase offers an array of AMZN tools that can assist merchants when it comes to product research, keyword research, listing optimization, and so much more.

Making sales on Amazon is not so easy because you’re not the only seller and the competition on Amazon is fierce. And if you want to make sales, you must be willing to come up with out-of-the-box marketing strategies. With the right marketing strategy, you can rake in massive sales and earn substantially on Amazon without stress.

Creating product bundles is one of the best marketing strategies you can implement if you want to boost your product sales. Remember, the easiest way to attract potential buyers is to offer them a deal that helps them save money and get more value, and a bundle helps you do that.

In this post, we will discuss everything you need to know about selling bundled products on Amazon. We’ll also tell you all about the Amazon Virtual Product Bundle Program and how it can help you boost your Amazon sales. First, what is product bundling?

What is Product Bundling?

Creating product bundles is a marketing strategy that involves grouping similar items together so you can sell off more items and make more money. To create a new bundle, you’ll have to group items that can function together and then sell them off as a single unit, but at a lower price. This way, you’ll be giving buyers the impression that they are getting more value at a lower price. Of course, this will cause a spike in your sales volume and average order volume, which can be exciting.

But as interesting as the idea of selling product bundles seems, it’s not something you should try out without learning how it works. In this post, we’ll show you how to create a new bundle. But, first, how does bundling work?

How Does Product Bundling Work?

The concept of bundling products sounds like wholesaling at first, but they are not the same. Selling wholesale products on Amazon involves selling the same items in bulk. Product bundling, on the other hand, involves merging and selling different products together.

Bundling works best with complementary products and frequently bought products. In other words, items that can be used together are the best for bundles. Shoppers often prefer to buy these items together instead of searching for them individually.

So, a well-designed bundle should make buyers’ searches easier. For instance, if you sell tables, you can create a package that includes a chair. Why? Because a buyer who’s looking to purchase a table most likely needs a chair as well.

If you sell both items, you can put them in a bundle and take some amount off the original cost of both items. This way, you’ll create the impression that you’re saving buyers’ stress and giving them more value at a lower price.

The best way to build bundles is to pair items that can be used together. But you should not only focus on pairing similar items; you should check out your customers’ previous purchases. You can use Amazon’s recommendation system to do this. Using the recommendation system is helpful because about 35% of purchases are based on recommendations. Also, 6 out of 10 recommendations lead to a purchase.

Learning how to sell bundles on Amazon may be difficult at first. But with the Amazon Virtual Product Bundle Program, you can easily build bundles.

Related: Best Products to Sell on Amazon

What is the Virtual Product Bundle Program?

You can create and sell virtual bundles that contain multiple product ASINs using the Virtual Product Bundles feature. By creating a bundle, you can sell two to five complementary products from a single listing. Brand owners can use this tool to sell bundles without having to package them together or change their FBA inbound inventory. In other words, you won’t have to create a separate bundle listing or make a new listing.

For example, if you sell a table under one ASIN and a chair under another, you may use the Virtual Product Bundles feature to bundle both items under one ASIN. And if you use FBA, Amazon will ship these items together when a consumer orders your entire bundle. So, it is not necessary to pack the items together.

Using this feature, Amz can update your stock quantity based on the availability of the lowest stock item. Amazon then assigns the bundle a unique SKU code that allows you to edit the bundle listing.
The program is currently a beta feature, and sellers have to be invited before using the feature. Still in doubt about the benefits of bundling products? Here are a few points to convince you further.

Benefits of Creating Product Bundles

A Perfect Way to Boost Product Sales and Order Volume

Bundling can boost individual item revenues and drive sales over time. By creating bundles, you can encourage buyers to buy more items instead of only a few items as they initially planned to. Thus, increasing your average order value.

For instance, instead of purchasing only a table, your customer may be offered the option of purchasing a table and two chairs as an entire bundle. This way, they’ll buy more than one product, and your average order value will increase. Win-win!

Reduced Marketing Costs

Bundling allows you to sell more while saving money on marketing and delivery. Instead of selling items individually, you can put products together and sell them as an entire bundle. By doing this, you sell off your inventory fast and make more money while at it.

Also, different items can be packaged together and shipped together. You also get to save money on promotions since you can group many items and market them as a bundle.

Lower Storage Costs

The longer your inventory stays in Amazon’s warehouse, the more you’ll incur expenses. If your products sell slowly, bundles are your best bet. With bundles, you can sell multiple products at once. And if you’re selling off items quickly, you can save money on inventory and shipping costs.

An Easy Way to Attract a Buying Crowd

Remember that multiple sellers often sell the same items on Amazon. So, if you sell your items at a fixed price and already have an audience, you can attract more customers. Your buyers most likely have an idea of your regular prices. So, a slight discount will make them feel like you’re offering more value at a lower price. Most shoppers will rather buy a pre packaged kit instead of picking individual items themselves.

Drawbacks of Product Bundling

As with everything that has benefits, bundling also has its cons.

Reduces Your Chances of Selling Products Individually

The most obvious con of bundling is that it reduces your chances of selling off items individually. Since you’ll be offering more value at a lower price, buyers will be less inclined to purchase items separately if they can buy them together.

Lower Profit Margin

Your profit margin may be affected since you will have to sell multiple products at a discounted price. You may make less profit than you would have if you had sold off the items in the bundle separately.

The benefits of bundling products far outweigh the disadvantages, so the strategy is certainly worth trying. Ready to start creating and selling bundles? Here are the different types of bundles you can start with.

Types of Product Bundles

Pure Bundling

This involves pairing multiple products and giving customers the option to buy them only as a new bundle. This bundle type works best for sellers who want to limit their customers’ choices. Hello Fresh, for instance, uses the pure bundling method. This bundling type uses a buy-one-get-all approach.

Mix and Match Bundling

This bundling method involves providing different product options and allowing customers to create their bundles themselves. These types of bundles work best for sellers who sell perishable items.

Cross-sell Bundling

This type of bundle contains multiple items that can be used together but cannot be used individually. Usually, one of the items in the bundle is an add-on. For instance, a bundle that contains a phone and earphones.

Gift-set Bundling

Gift packages are perfect for customers who wish to present a loved one with a collection of complementary items. This type of bundle is best sold during festive or holiday periods. For instance, if you sell human hair, you can create a bundle that contains hair and other maintenance tools.

New Product Bundling

This involves combining a newly released item with a top-selling item. The more in-demand and top-quality your main product is, the higher the purchase chances. This bundling method is mostly used by well-known brands that have just launched new products. The idea is to mix bestsellers with new releases to create awareness about them. This bundling method also works for pairing your highest priced item with a complementary lower priced one.

Stale Inventory Bundling

This is also known as “clearance sales” and involves selling old products to create storage space for new items. Consider combining a slow-moving item with a discounted version of one of your best-selling items in a bundle. This will make your offer more appealing to potential customers.

Buy-One-Get-One or BOGO Bundling

This bundling method works best for one-off purchases like electronics. The bundle often contains one main item and another item added at a discounted price. You can use this product bundle to convince buyers to buy more items at a discounted price.

Occasional Bundling

Sellers often create this type of bundle for special occasions. For instance, if you sell flowers, on Valentine’s day, you can create a bundle that contains flowers, chocolates, and scented candles. You can leverage this bundle to make more sales on special occasions.

Now that you know the different types of bundles you can create, you can start thinking of relevant packages for your business. But the first step to learning how to sell bundles is to check if you’re eligible to create bundles through the Amazon virtual bundle program.

Amazon Virtual Product Bundle Program: Requirements

The program is currently a beta feature and is only open to brand owners. Sellers who meet the following criteria will be sent an invite to use the program. Here are the requirements for eligibility:

• You must be a brand-registered seller and must be the owner of the ASINs you want to add to your bundle.

• Your products must be New and in stock.

• Gift cards, digital products, and used items cannot be added to a product bundle

• Bundles can only be created in the US marketplace.

The virtual product bundle feature is currently only compatible with Chrome and Firefox and can only work on the web-based app. Also, note that Amazon has a product bundling policy and it’s important that you follow the Amazon bundle guidelines as well.

How to Create Product Bundles

• Log in to your seller central account and go to the product bundle page.

• Select two to five product ASINs from your brand-registered products to bundle.

• You can upload up to 9 images to your listings. The individual items you uploaded previously will generate images automatically. However, it’s best to use an original image for the main image. Also, ensure that the main image shows all the items in the bundle.

• Complete your new listing. Enter the product title, description, and price. You have a maximum of 200 characters for your product title. Bundles should be priced lower than or equal to the original price of individual products in the bundle. If you price your bundle higher, you lose buy box eligibility. Plus, customers will be less likely to purchase if they have to pay a higher price for your bundle.

• The bundle price section shows the discounted price you’re offering.

• Lastly, enter the bullet points, SKU, and description for the product.

After you’ve created the bundle listing, you can adjust the product title, description, price, photos, and bullet points. Once the bundle has been saved, the bundled products and the bundle’s SKU cannot be changed. So, it’s important to incorporate relevant and high-volume keywords into your bundle listing since they send the right people to your listings. Also, ensure you follow the Amazon bundle guidelines for your product category.

The best way to find relevant keywords for your listings is to use Amazon software. But apart from keyword research, you’ll also have to create well-optimized listings to boost sales and conversions. For this reason, you need a tool that allows you to find the best keywords for your store and helps you create well-optimized listings. So, what’s the best Amazon software for your store?

How to Find Products for Creating Product Bundles

Selling bundles is a great strategy for success on Amazon, however, if you want to succeed, you cannot randomly put products together. You will have to carefully find in-demand and low-competition products that have a high chance of selling out quickly. Since the goal of creating product bundles is to combine complementary products in order to convince sellers to purchase, your priority should be selecting items that buyers would be willing to purchase as a pair.

Amazon has a section that can help give you an idea of these kinds of products, it’s called the “frequently bought together” section. Here, you’ll find products that buyers typically purchase together. Or, a method for creating a product bundle. The product options here can give you an idea of the items to include in your bundles.

Here are two other ways to help you find product options for your bundle.

• Search on Amazon

One straightforward way to find bundle product options is to search for “bundle” on Amazon. Most sellers who offer product bundles often use this keyword in their titles and listing descriptions.

You can uncover many profitable bundle options using this product research method. All you have to do is pick your desired product category, then type the search term “bundle”. For instance, if you sell in the fashion category, you can select “Fashion” and then search using this keyword.

• Use a Product Research Tool

Product research tools remain one of the best ways to discover profitable product options regardless of the selling method you plan to use. Wholesalers, arbitrage sellers, and even private labelers will find product research tools useful.

ZonBase offers four product research tools to help sellers uncover products with high demand and low competition. ZonResearch, one of ZonBase’s product research tools comes with inbuilt filters and presets to help you search for products and narrow down your search based on your preference.

With ZonResearch, you can select your preferred product categories, enter your filters and get access to an extensive list of product options to choose from.

You can try out this tool and other ZonBase tools for free for 7 days when you sign up for a free trial of the software.

Best Amazon Software for Keyword Research and Listing Optimization

ZonBase is the best Amazon software for keyword research and listing optimization. With the keyword tools, you can generate a list of relevant keyword options for different categories and even see their search volume and performance. The listing optimization tools also allow you to create well-optimized listings using your competitors’ listings cues. In other words, you can spy on your competitors’ listings and use their titles, descriptions, and content as a template for your own listings.

ZonBase also offers product research tools to help you find the best product combinations for your bundles. The software works excellently, even for sellers who sell products in different categories. In addition to this, the software offers PPC automation services and a listing optimizer that allows you to outsource listing creation to a team of experts. ZonBase is a one-stop shop for sellers. It provides a complete set of tools to help you scale your business seamlessly.

Check out the software

Conclusion: Should You Create Amazon Product Bundles?

Of course, you should. Bundles are an excellent way to market your products and make more sales without losing money. What’s more? Bundling works for every product category. All you have to do is find the best product combinations for your business.

Also, avoid creating unrelated product bundles and coming up with vague product bundle names. Sometimes, unrelated products are offered together as a bundle. Examples include pairing furniture and jewelry items, but doing this will reduce your chances of sales from your product bundles.

Check out your competitors’ for product bundle ideas and the best product bundle examples. Also, make sure your product bundles provide more value at a lower price. Otherwise, you’ll be losing customers. Additionally, seasonal bundles reduce your chances of making sales in the long run. So, try not to include too many seasonal items in the bundle. Don’t hesitate to try out this strategy for improved conversions now that you know how to sell bundled products on Amazon.

Hence, knowing how to find high demand products to sell on Amazon isn’t enough; you have to sell them at the right price.

We’ll tell you how to fix your product prices, but first, let’s talk about how to find profitable product options to sell on Amazon.

How to Find Profitable Products to Sell on Amazon

Use Product Research Tools

Product research is an essential part of every Amazon business. If you want to make sales on AMZN, you have to prioritize product research and dedicate time to finding high demand products for your online store. However, trying to find a profitable product option for your store can be pretty complicated. 

Thankfully, you can use efficient product research tools like ZonBase to uncover the best-selling items on Amazon. ZonBase’s ZonResearch and Hot Products tools, allow you to run product searches and product suggestions in any category. Here are five simple steps to help you take your product research to the next level using the ZonResearch tool.

• Open the ZonResearch tool from your ZonBase dashboard

• Choose your marketplace, select your preferred categories, and set the filters based on your specifications.

• Click the “Search” button 

Once you click the search button, ZonResearch goes through Amazon’s vast product database to generate a comprehensive list of profitable product options for sellers to choose from. 

Sellers who are not satisfied with the product options and are still in doubt the potential of their product options can validate them using the Zon Chrome extension tool. The ZonBase Chrome extension is a web app that allows sellers to run streamlined product searches and validate their product options. Using this tool, you can scour AMZN’s database to uncover relevant product options for your Amazon store. 

You can also use the ZonBase Hot products tool, an effective product research tool that also doubles as a supplier research tool. The tool gives you access to a list of reliable suppliers to source your products. Plus, it is easy to use and you can gain access to tons of product and supplier options. To access the tool, follow the same steps we outlined for the ZonResearch tool. 

Read our full post on Everything Amazon FBA Related.

Use the Amazon Bestsellers List

It can be challenging to choose a product to sell because there are so many things available on AMZN. The Amazon Bestsellers list has been carefully selected by AMZN to reduce stress. The top 100 items on Amazon are listed on the bestsellers list, then they are ranked based on their previous sales volume.

One of the simplest and most dependable ways to locate the top-selling products on Amazon is by using this technique. Accessing the Bestsellers list only requires taking the following four steps:

• First, open the bestsellers page
• Next, select the categories that interest you.
• Then, streamline your search by picking specific subcategories.
• Create a list of the products you think will do well based on the seller rank. 

Products do not maintain their ranks for too long because the Bestsellers list is updated every hour. Therefore, make sure to look at past year’s sales trends before choosing products from the list.

Utilize Google Trends

Product ideas can be found on Google just like almost anything else. Want to find the top selling items across a variety of online marketplaces and categories? An excellent resource is Google Trends Analytics.
Finding the greatest product selections amidst a sea of options is easy using Google searches.

By looking at the Google Trends data, you may identify the products that have been trending over time in your target market. You can also learn helpful details about the products you’re thinking about through the comparison on the search page.

Three Factors to Consider When Fixing Product Prices on Amazon

According to Statista, there are more than 3 million active sellers on the AMZN marketplace right now. Around 1.3 million of these sellers joined in 2020, which means there are lots of new Amazon sellers to compete with. (Source: Statista)

So, what does this data mean to you? As a seller, this means that you have a myriad of competitors trying to take a sale away from you. Even if you know how to find products with high demand to sell on Amazon, it doesn’t matter if you can’t sell them at the right price. You cannot win a place in the buy box if your products aren’t priced competitively. We’ll also discuss the three Cs that directly impact your success on AMZN. Let’s get right into it:

If you want to make sales on Amazon, you cannot stop at just learning how to find profitable products. You have to go the extra mile and learn how to price your products properly. And to this, you’ll have to ensure that your product prices are not on either pricing extreme – too high or too low.

Setting high prices that are above your audience’s budget may cause you to lose customers, and low prices may discourage buyers because they’ll assume that your products are inferior.

Here are three factors to consider when fixing product prices:

• Competition
• Customers
• Cost

As an Amazon FBA seller, competition, customers, and cost are the three things that you should pay attention to. These things directly impact your success as a seller and can make or break your business. Understanding how to integrate these 3 elements into your pricing scheme can help you increase your profit margins.

How to Price Amazon FBA Items: Top 3 Things to Consider

Competition

Amazon is an online marketplace where thousands of sellers already sell the same product. One good way to make yourself unique when you decide to sell on Amazon is to start selling private-label products. If you are not a brand owner or private label seller, then you cannot afford to be careless with your pricing.

With so many other sellers offering the same products, you can’t price yourself out of the customer’s reach. Sellers who have a slightly lower price than your product, without a doubt, will snatch your customers in an instant.

For this reason alone, researching your pricing and making it competitive is very important as a third-party seller.

Before you can attract customers with your low prices, you must start researching your customers first. The first thing on your agenda should be to look into the product reviews of your competitors. See whether customers are rating them highly because of their competitive pricing. Doing this will give you an idea of how you can price your product.

Do you want to price your product correctly? Then you must check whether the product you want to sell on Amazon gives equal or more value. If you have more value than what your competitors are providing, you already have an edge.

Checking your competitor’s products

You can always check your competitor’s product value by going beyond your process. You should always look into what the buyers are talking about your competitor’s products. This can be checked by looking into the product review section under each product. You can visit your competitor’s listing and read a few of your competitor’s reviews. You will have a general idea about their strengths and weaknesses.

If you find out that your product offers more value than that of your competitors, you shouldn’t fret. You can price higher than your competitors without any second thought. However, it will be a lot of effort to always prove that value to your customers. Making claims on product titles and descriptions category aren’t enough. You have to make your customer believe your worth.

You should have a different approach if your product gives an equal value to the competitors. Under such circumstances, you should price your product a little lower than your competitors. You must also consider that constantly reducing the price isn’t always great. Even in the name of competition, it can lead to a price war leading you to profit less than what you wanted.

Cost calculation

Calculating the cost of your product is the most important factor for deciding the correct pricing for your products. But, it’s a tough call to calculate your items’ cost. The values can range from the manufacturing cost of your product to the shipping cost to take your products to the fulfillment center.

Costs you need to keep in mind

If you want your price to be calculated correctly you must consider the following cost factors accurately:

Storage Cost: This cost includes the cost of inventory if you are fulfilling your products all by yourself. If you are using the Amazon FBA service, you need to pay a separate fee for your use of Amazon’s storage centers.

Raw materials: Raw materials are any materials that are used in the manufacture of the complete product that you are selling. This cost includes the cost of materials like wood, plastic, clothes, etc.

Labor Costs: It includes the cost of human resources that you have to use to engage people to manufacture.

Shipping Costs: Your shipping costs cover the cost of transporting your goods from your supplier to your inventory storage center or fulfillment center. If you are getting your products from websites such as Alibaba, it can get expensive. However, the total cost of products from China is usually low. You need to know how to find the bestselling products to sell on Amazon.

Assembly Costs: This cost includes the value of assimilating different products. The raw materials used to bring the final product to the customers also include labor and machine costs.

Marketing Cost: It includes the cost of making available your products to the customers. This may incur costs like advertising costs, paying content writers, marketers, and graphic designers.

Cost of returns: This is one of the major fees that is added on top of other costs that you have to bear. This is because of the lost profit due to customers returning your products.

Taxes: This is the cost that you have to bear while paying the government as per their respective tax laws.

Other miscellaneous costs

These costs include other costs that are not specific as above but incur while making products available to the customers. It includes accounting fees, repairs, and insurance costs.

To get the average cost per item, add up all your costs. Then, divide the total cost by the number of the products that you produce in a given time. 

Also, you need to calculate the profit percentage you want to achieve from each product you sell online. It is not enough that you know how to find a profitable product to sell on Amazon, you also need to make sure you are making enough profits to rotate your initial capital.

Customers

When it comes to a successful business, having a loyal customer base is an X-factor many sellers often overlook. Your business can only succeed if you have plenty of loyal customers supporting you. Without loyal customers, you will not have anyone to sell to. Loyal customers also spread your business through “word of mouth” marketing. Having a loyal customer base is as important as having trustworthy employees.

But how can your customers affect your product pricing? And what about the quote that says, “Build it, and they will come”? Isn’t it enough to create a successful AMZN store?

Well, the answer to this question is quite simple. Your customers affect what niche or category you want to target. Before you even start looking for a product to sell, when comes to selling your product?

The choice of what customer category you want to target can be done with a few simple steps. But mostly, by including the gathered cost data and the assessment of your competitors in your product category. Knowing the most profitable categories to sell on Amazon is very important if you want to make money there.

If you want to get ahead of your competitors, you can always do extensive research. Try and look for the weaknesses in your competitors’ listings. This is to gain an advantage over their poor product images, product reviews, and product descriptions. 

Getting to know your customer intimately is always a benefit, it will help you to get the correct pricing for profitability. Find out what kinds of products other sellers are selling, and you can analyze this process.

Different Types of Customers That You Can Target

Here are certain types of customers that you can target:

• Quality is driven: These types of customers are willing to spend more as long as they can see the quality. Because they are focused on quality, they also tend to be loyal customers. Once they find a store that produces the quality they want, they will likely return and buy more.

• Bargain Hunter: This type of customer is always searching for the best price for the given product. They look at various sites and compare them to choose the lowest purchase price. They do not like spending too much, so it will be hard to sell expensive products to them.

• Splurger: These types of customers are willing to spend their money on whatever they look appealing to at the first sight. They don’t care about the price of the items. If they want something, they will find a way to get it.

Shaping Your Product Price

The way you shape your product price should be considered based on the customer habits, tendencies, and predictability of the types of competitors. Even if you know how to find high demand products to sell on Amazon, it doesn’t mean anything. You still need to get to know your customers once and for all.

Also, there is a concern regarding raising the price of your product by a small percentage over the competitors. Doing this will question the interest of the quality-driven customers if the value offered by your product is equal to that of your competitors.

The only thing you should be stuck at is having a good grasp of your customer. If you can spend enough time researching, have a good grasp of your target audience. Spend some time researching and collecting data from existing and prospective customers.

Keep an eye on the highest category of customers you can target. And also take note of what is the highest volume of sales you can make to a category of customers.

How Important Is Pricing your Products on Amazon?

Pricing the products you sell on Amazon isn’t as easy as it seems. Without knowing the perfect strategy for pricing your product, you can end up overpricing or underpricing your merchandise.

According to a study published by the Harvard Business Review, a 1% price improvement can actually lead to an 11.1%. profit increase. That is a massive jump when it comes to the price-to-profit ratio; you can instantly increase your revenues just by changing your price by 1%.

The buying patterns of people are often the same. Many people will compare prices first before checking out the products added to their carts. If there is a lower-priced product, buyers will most likely know about it. And to be honest, the majority will prefer the one priced more competitively.

People will only spend way above their average budget when buying branded products. When it comes to non-branded and non-luxury products, not too many people will spend more than what is necessary.

At the end of the day, one of the easiest ways to generate maximum profit is to price your product competitively. And this means you always have to be wary of your competition.

In AMZN, 70% of the sales for a keyword search go to the Amazon sellers who are ranking on the first page. If you don’t have enough marketing budget to push your product to the top, pricing competitively is where you can make some changes.

Pricing correctly can help you dominate your product niche by letting you win the Buy Box. And increasing your sales will provide you with a best sellers rank that can help you get noticed by customers.

Conclusion

Pricing your product is not an easy task, and it will take time. You must give in all your time and ideas to price your product correctly. But once you set the price, your product’s ecosystem and branding will be set on autopilot. This means that finding the right pricing balance will determine the success of your overall selling efforts.

One of the major considerations in pricing is to mark your price as 99.99 instead of 100 dollars. Many studies find that this strategy is making a lot more difference in customers’ eyes. Maybe the added zeroes make customers think the price is higher than it should be. The difference between one cent can make your pricing more competitive and successful.

The product pricing strategy comes right after you choose the product niche. So, you must be careful in choosing the correct product niche by doing product research.

ZonBase is one of the best tools that you can use to build a profitable online business. It teaches you how to find profitable products to sell on Amazon. More importantly, it also has different tools such as keyword research, product research, listing optimization, and much more.

Interested in learning more about how to find profitable products to sell on Amazon? Gear up and build your online store today. Start by getting a free trial of Zonbase.

Typically, a bestselling product on Amazon is one that has high demand but low competition. However, there are so many product options, and choosing a product like this may be difficult.

In this post, we will show you the bestselling product categories on Amazon, then provide a few tips to help you choose profitable products. We’ll also tell you all about the Amazon Bestseller List and how to find the best-selling products on Amazon using software.

How to Find the Best-Selling Products on Amazon

There are millions of products in Amazon’s database and choosing the most profitable ones is not always a breeze. However, AMZN has curated a frequently-updated list of the top-selling items, making it easier for sellers to choose.

The bestsellers list is a list of products with high demand and sales potential. The top-selling items in any category, at any given time, are displayed on this list. And the list can be found just below the product information in the product listing.

How to Find The Bestselling Products on Amazon

Now that you know what to look out for when trying to choose from the numerous bestselling products on Amazon, how do you find the product options? Here are a few ways to find the best-selling products on Amazon without wasting much time.

Check the Amazon Bestseller List

The Bestsellers list is every seller’s guide to finding bestselling products that Amazon approves of. Since the list is curated based on accurate sales data and previous product performance, you can be sure to turn a profit.

Each product on the bestsellers list is assigned a BSR based on its market demand and performance. A lower BSR means a higher number of sales. Consequently, a higher BSR means lower sales for a product. A product with a BSR of 5000 has fewer sales compared to a product that has a BSR of 1. 

Sellers who are just starting out on Amazon may have a hard time figuring out the BSR, so it’s best to work with previous market trends. Most sellers prefer to choose products that have a proven track record of sales.

All you have to do is check the product’s ranking and see if it meets the criteria listed above. If it does, you can go ahead and try to sell it. However, always remember to start with a little quantity.

Also, remember that the bestseller list is updated hourly, so the product’s position is bound to fluctuate. But this does not mean that the product is no longer profitable.

Here’s how to use the bestseller list.

• First, open the bestsellers page
• Next, select the categories that interest you.
• Then, streamline your search by picking specific subcategories.
• Create a list of the products you think will do well based on the seller rank. 

What Determines the Bestseller Rank?

The information about how the BSR is calculated isn’t publicly disclosed by AMZN. However, they have hinted in the past that the BSR is affected by the number of sales alone. This means that a product’s price, review, or ratings do not directly affect its BSR rankings.

A product’s ranking basically depends on its recent sales numbers. As long as your product is making massive sales, you can outrank even other products that have been there for years. In other words, a newly released product can outrank a product from five years ago. The launch date is irrelevant.

Note that AMZ also considers the historical sales volume in determining the rank or average monthly sales. This means you are not likely to experience huge fluctuations in the ranking. While a sudden increase (or a sudden decrease) in sales can affect the rank, the changes wouldn’t be too drastic.

Related: Understanding Amazon’s Bestseller Rank

Observe Your Competitors

Even if you have already decided on a category, you still need to find the top-selling items in that category. One of the best ways to do this is to observe your competitors. Check out their product offerings; how quickly do they sell out? Also, consider using software for competitive analysis, as this will help you monitor their sales performance better.

Go For the Most-Gifted Items

Always research the most popular gifts in the category you choose. A product is likely to be in demand both in and out of season if it is typically purchased as a gift. You might even discover a good product with high-profit margins and minimal competition. Almost every seller, including private label sellers who sell private label products, will find success with this strategy.

Use Amazon Software for Product Research

Using the software is no doubt the easiest way to find the best-selling products on Amazon. There are many amazon online sales tool options available, but ZonBase is the best FBA software for finding the best-selling products on Amazon.

ZonBase offers an extensive collection of 13+ tools for product research, keyword research, and listing optimization. Finding the bestselling products is a lot easier with ZonBase’s effective combination of research tools. The software offers 2 product research tools, a Chrome extension, and a sales estimator tool. It also offers a done-for-you product validator service for sellers who are not confident in their choices and would like to have their product options reviewed by a team of experts.

Each of the tools in ZonBase’s suite is designed to bring you the bestselling products on Amazon in record time. Here’s how to use ZonResearch, one of ZonBase’s research tools, to find your next best-selling product.

• Open the ZonResearch tool from your ZonBase dashboard

• Choose your marketplace, select your preferred categories, and set the filters based on your specifications.

• Click the “Search” button 

Once you click the search button, ZonResearch sifts through millions of products to generate a comprehensive list of profitable product ideas. You can also click on the ‘Find a possible supplier’ button to get access to authentic supplier options to source your products.

A single search will give you access to thousands of product options to choose from. Sometimes, these options may be a boon. Other times, they may be overwhelming, making it difficult for your to choose. This is where the Chrome extension comes in.

ZonBase’s Chrome extension is an excellent way to validate your product choices. The tool uncovers hidden information about each product option. It also provides relevant data to help you make informed product decisions.

Conduct keyword research and analysis

This is a great place to start when you figure out how to find profitable products to sell on Amazon. You need to be able to figure out what keywords customers are using in their searches and what keywords your competitors are using on their product pages.

 Keyword research enables you to know what keywords have the highest search volume because a high-ranking keyword could translate into a high-demand product. Keywords are an important part of determining how to find profitable products to sell.

There are lots of Amazon keyword tools available that you can make use of. Some good examples are Jungle scout, Ahref, and Zonbase keyword tools. Amazon itself is a great place to begin your keyword research. You can do this by using the search bar.

Utilize Amazon trends report alongside google product reports

Amazon trend reports and google trends provide valuable information about profitable products you can sell. You can get access to products that are currently trendy in the market and products that there are in high demand. 

Research other marketplaces 

While Amazon is one of the top online marketplaces globally, there are other marketplaces where you can carry out product research to find profitable products. The best part is that very often these products are available at cheaper prices which you can buy and resell on Amazon. You can visit other marketplaces like Alibaba and eBay to find trending and popular products.

Related: Ultimate Guide to Selling on AMZN

What Are The Most Profitable Product Categories on Amazon

There are some categories that have a steady record of sales regardless of season and market demands. As a result of their stable market demand, these products rank very high on the bestsellers list. And new sellers are often advised to start by choosing products from any of these categories. So, what are the most profitable product categories on Amazon? Here are a few of them.

Amazon’s top ten high-demand categories:

• Home & Kitchen
• Sports & Outdoors
• Toys & Games
• Baby Products
• Garden & Outdoor
• Tools & Home Improvement
• Kitchen & Dining
• Clothing, Shoes & Jewelry
• Health, Household & Baby Care
• Beauty & Personal Care

Books 

It’s been said that AMZ started as an online bookshop, so books hold a special place on the platform. When you see a book, a hardcopy book to be exact, it’s most likely one of AMZ’s hottest products.

In today’s modern world, everyone owns a smartphone and can access thousands of ebooks. However, some people can’t meditate while reading softcopy books, so they prefer hardcopy books. Besides, books are great gift ideas, so there’s a market for books. There may not be a need to carve a niche around books alone, but they should be an important part of your store.

These are the best sellers at the time of writing. However, the best sellers list is updated every hour, so the position of some items may fluctuate.

Electronics

In today’s day and age, technology is essential to modern life and electronic gadgets play a huge role in this matter. Electronic gadgets will always be in demand, so it’s not surprising that this category is also ranking high on the Best Sellers list.

So many products that Amazon manufactures are part of this list, which greatly skews the category. For example, Kindle, Echo, and Fire TV are all manufactured by AMZ themselves, and all of these are hot sellers during the holidays. Still, other items in this category sell out, like pancakes. Large-screen television displays, appliances, video games, and even patio lighting are just some of the examples of bestsellers in this list.

However, take note that it is not easy to sell products and compete in the Electronics section. Aside from the fact that you’ll compete with AMZ, you’ll also lock horns with big Japanese brands. 

Cell Phones and Accessories

It is almost impossible to be without a smartphone these days. Cell phones are in-demand products and will be best sellers for a long time. In fact, cell phones are one of the bestselling products online on almost every marketplace. From tempered glass phone cases to the latest mobile phones from Apple and Samsung, this category is alive.

If you are interested in selling in this category, here is a tip we can give you: try going for the phone accessories niche. Why? Simple. Phones are changing year after year, and a new model is released every time too. This means that all the new models will also need a new phone case, tempered glass, or accessory that’s compatible. 

Also, phone accessories are often small and lightweight. This makes them perfect products for shipping because you won’t have to pay a lot to ship them to your customers. A win-win situation for you.

Home and Kitchen

It doesn’t need to be said that the recent pandemic has kept many of us in our homes. And because of that, most families can’t go out to eat and dine anymore. This has greatly influenced the rise of the Home and Kitchen to the top of best-selling products on Amazon. With so many moms (and dads) trying to cook for their families to minimize spending, this category became hot.

Some of the best-selling products on Amazon today in this category include baking tools, oven equipment, and cooking utensils. The Home and Kitchen category is a hot spot for sellers looking into dropshipping. A lot of manufacturers on the wholesale website Alibaba.com provide cheap products in this category. And they accept drop shipping, too, so you won’t need to stock up your inventory.

The home and kitchen category is one of the most consistent top-sellers on the AMZ website. If you plan to start a store but don’t want to put up a lot of upfront capital, try dropshipping here. You’ll be surprised at how many potential winning products are here in this section.

The best way to guarantee sales is to look for bestselling categories with low competition. Searching for products in subcategories and researching those that come up in a search for a category name are the best ways to find lower-competition products. 

Examining each product’s BSR will give you a good understanding of the competitive environment. You can guide your product choice by determining whether you would rank on that search results page.

Toys and Games

Toys and games are also some of the hottest products to sell on Amazon. Even better if you’re selling products that can be used as gifts for kids. There are so many best-selling toys on Amazon, and you’re unlikely to run out of ideas. Also, people are always want to purchase gifts for kids, so you’re also not likely to make losses.

Although these product categories are considered profitable, not all the products under them are profitable. So, when choosing products in any of these categories, you have to choose carefully.

Related: What is the best product to sell on Amazon FBA?

How to Choose A Profitable Product on Amazon: Things to Consider

• Select goods that can be sold for $25 to $50

One of the first factors to take into account when looking for products to sell on Amazon is the cost. Unless you make massive sales, products under $10 are less likely to generate revenue for you. On the other hand, if a product is unbranded and costs more than $100, it may be too pricey for your target market. Your best bet is to fix your prices between $25-$50 since most people would be able to afford that.

• Don’t Choose Seasonal Items

If your goal is to build a sustainable business, then you probably want to make sales all year round. If this is your goal, you should consider choosing products that can be sold at any time of the year.

• Reasonable Number of Amazon Reviews

Reviews are a good way to tell if customers are interested in a product, and what they think about it. If a product has too many reviews, it could mean that the market is saturated and the competition is tight. When choosing products, it’s best to go for products that have few customer reviews, somewhere between 100-200. This indicates that there is a sufficient amount of product demand, but that the market is not yet oversaturated.

• Size

If you sell on Amazon or online, you will have to fulfill orders and pay shipping costs. Large and bulky products incur higher shipping fees, while small and lightweight products do not incur excessive shipping costs. To increase your chances of making a profit, choose small and lightweight products.

Related: How to Find Products to Sell on Amazon

Conclusion

Using the combination of Best Seller Rank and FBA software properly will help you find the best-selling products on Amazon in less time compared to if you had to manually search and guess which products were likely to have high demand. The first step to building a profitable business is to find the hottest products to sell on Amazon. We hope this post has answered all your questions on finding the best sellers on Amazon.

However, finding the best items to sell on Amazon should be a priority if you want to be successful in this field. There are dozens of new Amazon products that fly undetected by most sellers. So if you are wondering what the best products to sell on Amazon are, this post is the one for you.

You can have a slice of the pie if you get hold of the top selling products on Amazon. However, there is always a catch when it comes to selling online. This is what we are going to discuss in this article.

Researching The Best Items To Sell on Amazon

Despite Amazon being the largest online marketplace, you cannot just pick up any product and sell it. Finding the best items on Amazon requires some deep research too. If you are set to create a success story and grow a successful business, you must take product research seriously. If you can find the right product with great margins and generate a lot of sales, you can scale your business quickly.

If you are trying to find the best categories, then you need data-driven information to make the right decision, and there is always confusion about where to start. Knowing the basics of selling products; the ones to push and which ones to ignore is critical to your success.

There is a huge pool of nearly 400 million individual products on the website. And every seller might find it difficult to filter and find the best items to sell. It’s always difficult to put time and effort into finding the winning product. But if you don’t do it, you will waste a lot of precious time and money in the long run.

In this article, you will find the best items to sell. We have picked the hottest product categories to give you an idea too. If you are ready to make some money by selling online, read this article to get started.

Is it profitable to be a seller on Amazon?

Amazon is the most popular online selling website today. When you sell on the platform, you already have the advantage of leveraging customers’ trust. Third-party sellers are enrolling in Amazon largely because of the trust people have in Amazon. This can help vendors when it comes to pushing their sales. Also, the listing fee on AMZN isn’t as big compared to other e-commerce platforms.

With nearly two million third-party sellers worldwide, 55% of the sales in 2020 have come from third-party sellers.

These numbers are impressive. However, the competition is tougher today compared to a few years ago. Moreover, selling your brand is considered more profitable nowadays too.

You can do your fulfillment in two ways. The first is FBM (fulfillment by Merchant) and the second is FBA (fulfillment by Amazon).

If you use FBM, you’ll have to handle your packing, shipping, and customer service on your own. You’ll also be solely responsible for your shipping fees and fulfillment expenses. However, you can also delegate the work to Amazon under the program known as Amazon FBA. You just need to send your products to their warehouse, and AMZ will fulfill your orders.

As soon as a sale happens, they will pick, pack and ship your orders for you. You will have all the time in the world to focus on your business by shifting the fulfillment to Amazon. And since they already have an established network, you won’t have to worry about getting your orders lost or damaged.

If you are unaware of FBA, you should check it out. Taking advantage of this option makes selling a breeze. Amazon has the experience, and its expert personnel can efficiently handle your orders. Just find the best items to sell on Amazon to start making some money, and let FBA do the rest.

The importance of selling the right product.

Effective product research is huge, especially for new sellers. It’s not always about the top selling products. Sometimes you also need to sell products that provide value to your customers.

The time spent on product research is always worthwhile. Remember that hundreds of millions of people are already itching to buy on the website. As the seller, it is important to know the product niche that customers are interested in.

Some of the best items on Amazon are not noticed by newbie sellers. For example, many new, trending Amazon products don’t get noticed by inexperienced sellers until they start to get popular. Some of the top selling products on Amazon are from those who sell handmade items too.

If you want to sell on Amazon and achieve sustainable growth, you must start by choosing profitable products. You can pick any item for sale and get a few sales every once in a while. But don’t you want your Amazon store to expand and consistently generate hundreds of sales per day? Don’t you want to reach a point where selling gets automated? Shouldn’t you aim to spend your precious time with your friends and family instead of working 24/7? 

Make sure that the product niche you choose isn’t overcrowded and the demand is high. When it comes to choosing the best product to sell, low competition is always good. 

Factors to consider when choosing your products

You have to consider various factors if you want to sell the right products. Below are a few factors to take into consideration before you jump into researching products:

New, Used, and Homemade Products for sale on Amazon

You are wrong if you think that Amazon only allows you to sell new products. There are numerous categories of products for sale. Third-party sellers can offer new products, used products, and homemade and handmade items.

New Products

Most people shop only for new products. The number of people looking for refurbished products is less compared to people looking for new ones. Statistics of products with high sales on AMZ mostly include new products.

But it is worth noting that new products are expensive to buy, ship, and store compared to used ones. That means you can also include a new category of old products in your product listing.

Used Products

Used products can also sell well on the AMZ platform. But, you have to take special consideration when choosing used items. Some items that can be easily purchased new cannot be sold under the used product category.

You can earn a decent profit from selling old items. That is because used products can be sourced for a cheap amount. They can also be sold at a higher amount. Thus, selling used items is also a good strategy for new sellers. An example of using items that you can sell is refurbished goods bought from discount stores. You can also sell used books from mom-and-pop bookshops.

Here is a piece of condition guidelines that Amazon has issued for used items:

Source: Sellercentral.Amazon

Homemade and Handmade Items

Amazon also has a product category for artisans, in fact, there’s an entire platform for people who want to sell handmade products. Homemade and handmade products are niches, but the monetary value they bring is also huge. Those who sell handmade items can make a lot, but they also need to invest more time and effort in their products.

If you find this business appealing, you can make arrangements with artisans too. You can help them earn a living by selling their products online. It will be best if you can make handicrafts by yourself, but reselling is great too.

Check the market, create the on-demand items and you can make a fortune under this category. But remember, this is a time-consuming and laborious process. 

Here is a piece of introduction from Amazon that is an inspiration for all the artisans to start selling their products on the platform:

Source: Amazon handmade

There is no rigid answer as to which process is the best for you. All of them have their pros and cons. You must choose your strategy based on your ability to procure products and the product’s ability to generate enough revenue for you.

How Big should your Product be?

The products that you can find vary all the time. From light feathers to giant machines, there is always an opportunity to make money selling these times. But what is the category of item suitable to sell for a newcomer? Are smaller products the best items on Amazon? Or should you go for bigger ones?

The product you choose to sell should be lightweight and small. When you enter the market, you don’t know how to handle large items, and the pricing is too high. You need items that can be sold frequently and generate revenue daily. Here are some reasons why you should buy small and lightweight items:

• You can buy small items for cheap since cheap items require less investment. This way, you can enter the AMZ market with minimal investment yet quick returns.
• Small and lightweight items are inexpensive to ship but you can cut down shipping costs and invest the money elsewhere.
• You can get AMZ’s fulfillment service for fewer fees for smaller items. Larger and heavier items cost more for storage, eventually cutting your profit margin.

There are larger items with considerably huge profit margins, but there is a huge cost to earn that profit. So, it’s best to start with smaller items. Minimizing your expenses is also one way to earn more.

What’s the Best Price Point for your product?

Price is one of the most important factors to consider when choosing the best items to sell. Profit is directly proportional to the selling price of the product, so you must be very careful when fixing product prices.

Ideally, smaller items that are cheap will have a higher profit margin. An item that costs $15 can make a higher profit margin than a $100-dollar item. Additionally, items with lower prices are often purchased, rapidly increasing profit margins.

Targeting products that sell for $13 to $60 apiece is advisable. Since these items will be bought frequently, it can increase your sales volume. Your profit margin in total will increase if your sales volume increases, and you can also get more customer reviews that can help boost your rankings.

What Product Categories are best?

The website sells nearly 400,000,000 individual products; this allows sellers to reach out to a diverse community of buyers. Plus customers are confident enough to trust AMZ as their shopping destination. They believe that AMZ will ensure their items are safe, authentic, and not damaged.

It is challenging for a new seller to find the perfect product niche and compete against the existing sellers. You must give plenty of time to researching product ideas and choosing a niche that is beneficial to you. Knowing which product will cost less and generate the most sales is a must for every seller.

Generally speaking, here are some of the best selling categories on AMZ:

• Toys & video games
• Electronics
• Camera & Photos
• Books
• Home & Kitchen 
• Personal care and beauty products

Some categories sell more than others, but you can have a decent start with these product categories and grow gradually. Find a niche that is right for you and jump into it.

What Kind of Business Model Should You Use?

Sourcing products and choosing a business model have always been a crucial part of selling on Amazon. While most people don’t know how products can be sourced, a few know how it can be done. Practically, it is a very vast subject, and it can only be fully understood when you attempt to start your Amazon store. A few options have been in practice and are quite popular as well. Here’s an insight into the different business models and how the model you choose can influence how you should start sourcing your product. 

Wholesale

It is a practice of buying in bulk at a reduced price and selling them for a good profit margin. The wholesalers offer a discount because of your quantity purchase.

It’s a good method of sourcing your product, but you need a good amount of investment to purchase the bulk inventory. You have a minimum order quantity, and you cannot buy below that quantity. Also, the more you buy, the more you will gain because of the quantity discount on your purchase.

Dropshipping

It is a retail fulfillment that can be done without storing, managing, and shipping your inventory. Simply put, you don’t have to do anything more than managing your digital store. 

In dropshipping, you need to contact your supplier, receive the order and complete the order. You won’t need a physical inventory by delivering the products directly from the supplier to your customer. The fulfillment is done by your supplier, under your name. 

Dropshipping is best for those sellers with a low entry point and who are not perfect with inventory management and other fulfillment options. So, it’s easy to skip the time and cost of manufacturing and maintaining stock. It’s very easy to go with dropshipping if you are an entrepreneur starting an eCommerce business operating on a small budget.

Related: Seller’s Guide to Amazon Dropshipping

Private Label

Running a private label business on Amazon involves selling already existing, generic products under your own brand name. This is the best business model if you want to build your own brand on Amazon, gain brand recognition, and uniquely do your business. You have all the facilities under dropshipping, but you must sell your products under your unique brand name. Under dropshipping, you contact the manufacturer, order your product in bulk quantity, and leave the order fulfillment to Amazon.

The private label business model is quite flexible, but that’s not the main advantage of the business model. The main benefit of selling private label products on Amazon is the competitive advantage that it gives you, which can in turn result in a lot of sales.

Choose your strategy based on your business plan and the budget you wish to invest in the business. You must research and choose the option that will ensure that you will succeed at whatever you choose.

Where can you find the best items to sell?

You must be looking for places to source your product if you are into reselling. And there are different places to source your products from. The most important part of your business is customers. And customers want to purchase the best products. For that, you must procure your products from the best place. 

Here are some of the best places from where you can purchase your product for sale:

Alibaba

Alibaba is a website from which traders from around the world can contact manufacturers and suppliers in China for their products. These products are cheap, and the buyer can resell them for a big profit. Alibaba has a huge database of products, and the manufacturers are always ready to ship these products to the buyer’s destination on demand.

One of the benefits of sourcing your product from Alibaba is the manufacturers are friendly to work on your branding and customization. Most suppliers here also have minimum order requirements, and the more products you can purchase at once the better deal you’ll get.

Aliexpress

Aliexpress is one alternative for Alibaba to source your product from. It is an international retail platform from which buyers from all over the world can procure products for resale.

But, because this is intended for customers, it’s a little costlier than Alibaba. However, there is no minimum order size requirement for buying from Alibaba. That will be a big plus point for buying from Aliexpress.

Other Brick and Mortar stores

Sometimes, the best place to source your products can be just around you. You don’t need to import since local retail stores like Walmart can be your source of products. 

The main theory of selling is to earn more profit margin than your costs. It doesn’t matter where you purchase your goods as long as you can sell them for a great profit margin. The price of products is different in different states and countries. You can leverage this fact by sourcing your products from the state with the lowest cost. Then you can start selling them in a state with a higher sales price. You can also look for events that offer discounts on bundle purchases.

Other Online Marketplaces

It is similar to finding cheap items in brick-and-mortar stores. The difference is here, you look online to source your products. Online stores like eBay can be a great place to look. If you can find something being sold there for less than it’s being sold on the AMZ website, then it has resale potential.

Garage Sales

We have already discussed used items earlier in the article. If you are interested in selling used items, garage sales can be the best option to look into. Garage sales are a gold mine only a few people visit. 

The people selling goods also have little knowledge of the value of the items they are selling. It would be easy to convince them to get these items for less value and sell them online.

Of course, there are other places also from where you can source your products. But, the main thing is you must do your research before you take action. 

Zonbase: The Easiest Way To Find Winning Products To Sell

All the discussion above brings us to one simple question: what is the easiest way to find winning items to sell? To do this, you need to find a service provider that can offer comparative analysis and data-driven information.

ZonBase

Source: ZonBase Homepage

Zonbase is an Amazon software recognized for its complete set of Amazon seller tools. The software offers a wide range of tools for finding profitable products, conducting keyword research, optimizing listings, and running optimized PPC campaigns.

Under ZonBase there are specifically five product research tools.

• ZonResearch: It helps you to filter through the entire AMZ database to find your next winning product idea.
• Chrome Extension: It helps you to add a Chrome extension to see all the relevant figures behind your product. It helps you assess your product ideas by displaying relevant data on the AMZ search results page. 
• Hot Products: This helps you to choose your next product from the hottest selling products currently. 
• Product Validator: It helps you to validate the product you choose for the product launch.
• Sales Estimator: It estimates the monthly sales quantity to find out how much you can sell. It also indicates whether you can compete with other competitors or not.

Conclusion

When entering into the selling business, choosing the winning product is important. In many ways, it is the deciding factor of whether you are going to succeed or not.

While it can be intimidating to start as a complete newbie, don’t fret. If you follow the tips above, you are on the right path to success. Also, make sure to use the product research tools offered by ZonBase. You can try Zonbase for a free trial if you want to try out the software first.

Also, check out this video for a complete Amazon Product Research Tutorial! 

Now that the world has gone digital and people have stopped going to any local stores for shopping, Amazon sellers have got an even larger customer base. So, there’s a greater opportunity to make sales. However, the competition is fierce and the only way to succeed is to find the best-selling products on Amazon.

Introduction to the Best-Selling Products on Amazon.

Because Amazon has a dedicated and widely searched best-seller category section, you always have an opportunity to decide the most profitable category for yourself. Simply put, Amazon is dedicated to helping you find the most frequently bought items on Amazon. To do this, they have put together a regularly updated list of top-selling items on Amazon.

Since it is a highly volatile market, you must always keep an eye on what product market niche is trending. Another product can replace the chosen product at any minute. This happens mostly to seasonal products and products that are sold during the holiday seasons.

Also, some products never fail Amazon sellers. For instance, items like books and electronics are some of the top-selling products on the list. You can always choose items in this category based on the demand and profitability of the target market.

The term “Best Seller Rank” (BSR) is a score that is given to the products as per their seller’s rank. It is divided into two categories; the first score is given based on the product category, and the second one is given per the sub-category. In other words, the first category ranks the products as per their primary category and the second one ranks them as per their sub-category.

Related: Deciding between an individual and professional account

How to Find Profitable Products Using Amazon’s BSR

If you want to appear on the first page of search results, you cannot browse categories and make random selections. You have to be strategic if you want to attain profitability. Besides ranking, sellers also need to consider various other aspects that directly and indirectly help them increase profitability.

You must have a good understanding of the Amazon FBA fees, shipping costs, durability, size, and weight of the product to make it fairly easy for you to sell your product with a good profit margin.

You always have to pay attention to the metrics you can leverage to stay on top of the Amazon game. You can also browse categories to search for items that cost between $10 to $50. In other words, choose items that have high demand and low competition. This way, you can always stand out from your competitors.

Amazon’s Best seller list is always helpful in finding the top-selling items on Amazon and choosing a niche with a high chance of success. The items are already profitable on Amazon. All you have to do now is optimize your listings for more visibility.

The “frequently bought together” and “customers also bought” sections also allow you to see what other products Amazon shoppers are interested in and are willing to pay for. You should note, though, that product rankings do not remain the same because the best-seller list is updated hourly. So, if you want to use the list, don’t expect any product to remain in the same position for too long.

You can also use ZonBase’s ZonResearch tool to find the top selling items on Amazon using search filters based on your preferences. You can choose to find products in specific categories or you can use keywords and other characteristics to specify your preference.

What Are the Most Profitable Product Categories on Amazon?

Let’s quickly dive into the core of the subject matter. If you read to the end, you will find out which specific categories and subcategories are great performers under the respective headings. 

Specific categories like books, clothing, and kitchen sell well throughout the year, while other products may have seasonal demand and outstanding sales performance. Here’s a list of categories that are constantly topping the chart on AMZ.

1. Gift Cards

Amazon gift cards can be used to buy a wide variety of products, and it’s not a surprise they are on the list of products to sell. This is why Amazon gift cards are classified as one of the hottest product categories. If you buy a gift card, you can load it with a certain amount of money and gift it to others. Afterward, the other person can purchase any product on Amazon.

2. Electronics

When it comes to the top selling items on Amazon, electronic items are in first place. This category is constantly updated because of the wide variety of products it encompasses.

Another factor in its never-diminishing profitability is the advancement of technology. Every year, new brands create products in this category that quickly become bestsellers in this category.

Related: How to sell on Amazon FBA

Some of the popular categories under this category are: 

1. Multi plugs
2. Monitors
3. Voice control equipment
4. Wireless speakers

3. Photography and Camera

Cameras and other photography equipment are currently best-selling items that can be explored extensively by new sellers. However, this category is brand-specific, and you always have to pay attention to the brands that your customers’ favor and make product choices accordingly.

Some of the popular items under this category are:

• Camera stands
• Lightning equipment
• Telescope and Binoculars
• Security cameras

4. Video Cameras

Throughout the last few years, teens and adults have become more interested in videography and graphics. This category provides all the equipment and instruments needed by videographers. Also, the demand is high, and any new seller can enter the market with items in this category. 

The entertainment sector is ever-evolving with new technologies, and videography is an integral part of the sector. It is a booming business, and you can make a good fortune selling items related to videography. Before choosing potential top selling products in this category, ensure you check to be sure that they’ll make consistent sales all year round and will keep performing well.

Bestsellers in this category include:

• Gaming control
• Gaming headset
• Battery packs for controllers
• Gift cards for Playstation, XBOX, Nintendo, etc
• Control pads and gaming mouse

5. Books

No matter how many technological advancements we accomplish, books are special in human hearts. So, it is unsurprising that books are still among the top-selling products on Amazon. Also, if you want to start out selling on AMZ with zero capital, you can declutter your bookshelf and sell books on AMZ.

Books have a simple sales process and can be sold easily. Many book categories or genres include fiction, romance, fantasy, mystery, etc. The options may be a boon, but you should look for the best-selling book genres if you want to make a profit. And if you like, you can mix all the genres together to make a good heap of products based on market demand. Just ensure you choose an in-demand genre before you decide to sell books on AMZ.

Many people no longer buy hard-copy books on Amazon, though, so you may not make as many sales as you expect. This is because AMZ runs a kindle store that allows people to browse, buy, download, and read eBooks. And seeing as phones are more accessible these days, many people prefer to sign up for AMZ’s kindle store. And if you’re a customer who’s in need of books in any genre, check AMZ. There’s a book on Amazon for you.

6. Clothing, Shoes, and Jewelry

This is the category with the largest number of items. Hence there are already a large number of sellers selling under this category. So, there is always a risk in choosing this category if you dive in without a detailed investigation. By focusing on a specific customer group, you will stand out and make your brand.

Yes, some sellers sell beautiful clothes and jewelry, but they cant bag a handsome revenue. Your items need to be attractive and have a unique selling point. By doing this, you can always sell more than your competitors.

Some of the best items in this category are as follows:

• T-shirts
• Socks 
• Crocs 
• Shorts for men and women 
• Undergarments and swimwear

The above categories were the primary ones currently being sold on Amazon. Apart from these high-demand items, some other categories are giving head-to-head competition. Some of the promising product categories are as follows:

7. Beauty and Personal Care Products

Every person is super conscious about their health nowadays. Also, the use of beauty products is ever-increasing. Personal care and beauty products for hair, skin and oral hygiene are taking over the market quickly. 

Above all, staying healthy and looking beautiful is the main part of presenting yourself to anyone. And, that’s the main reason Amazon has qualified this category as one of the best ones to sell at the moment.

There are millions of beauty products, and every day millions of others are being added to this category under the tag of being natural, organic, and chemical-free. Sellers can explore this category because the beauty products industry is already generating billions of dollars.

• Deodorants and perfumes
• Body creams
• Makeup accessories 
• Hairdryers
• Bath and bathing accessories
• Foot and nail care

8. Home and Kitchen

This category is the most important category for everyone who has a family and other related stuff. Some of the best-selling subcategories under this category include furniture, air purifiers, cleaning utilities, and other kitchenware. 

Some other products include home decor and other products related to storage and utility organization. The seasonal decor and other stuff that is required for household purposes rank high on Amazon. 

9. Pet Supplies

This category has been growing steadily as more and more people are interested in pets. As a result, there is an increased demand for pet supplies. This field is diverse and allows many sellers to explore new avenues for business. You can choose any kind of pet, such as dogs, cats, fish, and other animals, as your preferred category. Various products can be sold to make this category rich and diverse.

10.  Sports and Outdoors

Sports and other outdoor workout items are also considered hot products on Amazon as more people are involved in various indoor as well as outdoor sports. 

Related equipment like sportswear, shoes, and other related items tend to sell more because of high demand. If a seller is considering targeting this category, you must pay great attention to amazon product images and keywords. It will be an asset if you can include lifestyle images.

How To Carry Out Amazon Product Research

Product research is a crucial aspect of every Amazon business. Without it, scaling an Amazon business is an impossible feat. Hence, sellers who do not know how to execute these tasks often struggle. Here’s how to carry out product research to find the best-selling products on Amazon.

As with everything else on Amazon, you have a choice. In other words, you can decide to carry out your research manually or automate it using Amazon seller tools.

Manual Research

This method usually involves two steps.

• Amazon Best Seller Rank (BSR)

No matter how skilled you are, it is unlikely that you’ll be able to guess the best-selling products on Amazon correctly. No one can tell the profitable product categories better than Amazon, and this is where the Bestsellers list comes in.

The Bestsellers list is a database that contains a list of the most profitable product categories and subcategories on Amazon. Also, the list provides detailed information about every product. This will help you make an informed choice.

Sellers who opt for automated research will still find the best seller list very useful. One tip that will certainly come in handy is to choose products that are not at either extreme of the pricing spectrum.

• Carry Out Competitive Analysis

Competitive analysis is simply checking out what the trend is. And this is very important if you’re a beginner who’s trying to pick a new niche. What are your competitors selling? Which products have high demand or low competition? Check out their product listing pages and their official website for product ideas. 

This information tells you what items are selling well, the ones that are getting good ratings and reviews, and the ones that are not doing so well. Alternatively, you can check the kind of service your competitor offers by placing an order. You can also estimate a product’s profitability by checking out your competitors’ sales volume. Ensure you pay attention to their strengths and weaknesses, then improve on them.

Automated Research

Running an Amazon business involves a wide range of processes, so you can’t afford to spend all your time trying to find the best-selling products on Amazon. Product research is one of the Amazon basics that sellers cannot do without. Hence, automating your product research process is a great idea. To do this, you can make use of Amazon FBA software like ZonBase.

If you use reliable software, you will be able to find the best-selling products on Amazon in no time. Even though you will incur some extra costs if you opt for this method, software like ZonBase will give you value for your money.

ZonBase is an Amazon FBA software that contains various Amazon seller tools for product research, keyword research, and listing optimization. The software offers 4 tools for product research, here’s what they’ll help you do:

• ZonResearch

The ZonResearch tool from ZonBase helps you great product ideas with high sales volume in your niche. Using ZonResearch, you can identify and rank the most profitable products in any niche in only a few seconds. This tool also comes with a preset feature that allows you to search based on your preferences and save your preferred specifications for later use. It shows the average monthly sales for any product option, as well as other important product details.

• Hot Products

The Hot Products tool from ZonBase is an Amazon seller tool that generates an extensive list of products with consistent demand in any category. It also creates a solid, accurate, and up-to-date database using important data, sales trends, and reviews. With this tool, you not only have access to profitable niches and good product suggestions but are also provided with suppliers from which you can purchase them.

• Product Validator

This tool will help you narrow down the list of profitable niches and product options created with the first two tools. ZonBase product validator leverages the expertise of ZonBase’s Amazon experts to help you effectively scale your Amazon business.

• Zon Chrome Extension

This tool allows you to spy on your competitors and see what products are performing well before you make a final product selection. The Zon Chrome Extension provides comprehensive information about any product you decide to sell. Using this tool, you can get a deeper look into AMZN’s database to see the previous sales history, average monthly sales, and revenue figures for any product option.

With the insights from this tool, you can validate your product ideas and make the right product choices for your store.

The tools are uniquely designed to bring you the best-selling products on Amazon using the sales trends, Amazon BSR, and competitive analysis.

Amazon Product Selection Tips: What to Look For

• Pricing

Avoid choosing products on either extreme of the pricing spectrum. If a product is too cheap or too expensive, your profit margin will suffer, and your sales margins will be low. Hence, it’s best to choose products that cost about $15-$50 after all fees have been included. Also, fix competitive prices. If you sell to Amazon Prime members, make sure you factor in shipping costs when fixing prices.

• Position on Amazon’s BSR list

Although the BSR list is a good way to find the best-selling products on Amazon, not every product is guaranteed to make sales. It is recommended that you choose products that have relatively high sales margins and do not rank below 5000.

By collecting 3-5 products with a BSR ranking of 5000 in your main category, you are guaranteed to sell a huge volume. There are higher odds of success if there are more products with low BSR ratings.

• Size

Choose small, lightweight products, preferably those weighing less than 3 pounds. The larger the product size, the higher the FBA fees you’ll incur. This can harm your profit margin or cause you to run at a loss.

• Minimal Competition

In-demand products with little competition are a great choice. Also, avoid choosing product categories that are already saturated with big brands. Starting with a product that has a track record of consistent demand and relatively little competition is preferable to competing with products that already have famous brands. Also, consider using FBA since it’ll give you more credibility and you can even sell to Amazon Prime subscribers.

• Seasonality

When choosing a product for your store, try not to go for seasonal items, especially if your goal is to have your business running for the entire year. If you go for products that Amazon shoppers only purchase during a certain period, you will be unable to run an active business to generate income all year round.

Conclusion

Amazon has more than 400 million products. Among these products, only a few categories are the most trending, and the best-selling products on Amazon can change at any time. You can maintain your ranking if you work on creating value with the most essential products to sell on Amazon. 

The research phase can be cumbersome, but once you get the right product in your bag, you can run the business on autopilot. Several Amazon seller software tools can help you research the best products to sell on Amazon. Also, you can be sure of making sales if you use all the tips that we have provided.

In anything you do, you must always remember to provide value to the amount of money customers pay for your products. If you are passionate about what you sell, you can earn profits quickly.