Amazon: Establishing the Best Product Criteria

Image A: Amazon (photo credit to unsplash)

It started about three years ago that I stumbled on Amazon selling through a friend who worked as a product sourcer in China for an American guy who has a business in selling things in Amazon. During that time, I wasn't happy anymore as a nurse (disclaimer: until now lol but I am gradually working towards what I want to do). From then on, I did my research about the whole Amazon thing from fulfillment by merchant to fulfillment by Amazon. Honestly, it was confusing especially the part that you had to do some barcoding of products especially if it came from China. I decided to seek help from my friend to do all the gritty work from talking to Chinese suppliers and importing products to the US.

My first product was ''No Smoking Sign''. The above photo is the actual design of my product. I was selling it for $12.99 per pack (it contains 4 no smoking signs). I didn't have any rationale about why I chose the ''No Smoking Sign'' product except that my friend suggested it. All I know was that I just wanted to get on board.

This is the screenshot (photo above) of my ''Product Costing" in excel. For every pack sold, I earned a profit of $5.07. I was selling through ''Fulfillment by Amazon'' and I had to pay $5.41 for every pack sold. The fees were worth it because I didn't do anything except checking the app for any sales. It was the ideal passive income business (but with the right product). I thought that I was lucky for my first product because the product was on the first page listing and it was selling regularly until I listed my second product which was ''Smoking Area Sign'' (photo below of the design). It didn't make a sale even if I placed discounts already!

It was my first mistake in Amazon selling. Hence, I learned that if you want to make money in Amazon, you need to be able to pick the best product criteria that will guarantee your business. Bottom-line, choosing the right product is the strategic part of your Amazon business.

This is the list of things that I recommend based on my experiences and the books that I have read about Amazon selling when it comes to choosing the right products:

1. Liability - It is best to minimize liability (if possible) by avoiding anything that could have a potential risk. Avoid products that could cause harm to your customers. Examples are stoves, knives, or anything that could hurt the customer. We do not want them to get back at us and sue us!
   

2. Weight - The goal is to create a passive business with least amount of effort and money hence the weight of the product should be considered. The heavier the product, the higher the cost of shipping. We do not want to lose our profit to shipping fees! It is best to choose products that weigh under 5 pounds (2.2 kilos).
   

3. Size - Look for products that are easy to pack so it means you should choose products that are small in sizes and if possible avoid odd-shaped ones. Our goal is to have products that are easy to pack and easy to ship. The easier, the better!
   

4. Price - Based on the book that I have read, the ideal price range to sell your product should be between $20 to $200 so find products that you think could sell between that range. Good branding influences pricing. The higher the value of the brand, the more customer will actually spend to purchase your product. A valuable brand can justify the spending!
   

5. Easy to Source - Find high-quality products that could be sourced from multiple suppliers because you will have an opportunity to negotiate for the best rate. Avoid products that have less suppliers because you do not have the leverage to demand or haggle for the best rate.
   

6. Generic - The most important criteria in finding a product is choosing products that are generic in nature where in you can easily brand it with your logo. For example, I sold balloons in Amazon. It is a very generic product however the difference is I placed an Eid Mubarak design on it and sold it during Eid al-Fitr and Eid al-Adha. It was a success! I sold 200 packs.

There are so many things to learn about Amazon and honestly, I still have many things to learn. As I go through my adventure in finding my way in this jungle, I will gradually share my progress, my failures, my success and other crazy things in this platform. The most important thing is that we will not give up and we will gradually work our way into having a good system where in we could earn passively and eventually not be dependent on a single income stream! We just need to trust the process.