How do I choose what to sell with Amazon?

Have you ever had an ambition to do business yet you do not know which products you want to trade in? Well, it happens, and now that you want to sell with Amazon, your predicament may get worse. Given such a large marketplace, one can very quickly get confused regarding the choice of items to sell.

 Read on to grab some ideas on how to beat the confusion about choosing the products to sell on Amazon.

Where to start

The first and most straightforward way is for you to look around your house or compound. Remember not everything may qualify as a sells item, but books or different gifts that you have never opened would give you a sensible start.

Two, you can walk into a local retail store and buy available items at lower prices. For better results, you can look around for items that are on sale or clearance. The whole idea is for you to get articles which you can buy at prices that are less than what Amazon is selling. When you buy an item from the retail store at a low cost and sell it on Amazon, you exercise a business model called arbitrage.

Selling products on Amazon by retail arbitrage

Arbitrage is regarded among the friendliest ways to get started on Amazon since its starting capital is low and it creates room for you to learn the ropes. The experience you gain here also opens room for you to take in extensive knowledge about how selling on Amazon takes place. And guess what; you can apply this knowledge to other aspects of your business as you expand.
For you to start the retail arbitrage plan, you first of all have to set up your seller account. This will give you access to the Amazon Seller App where you will get all the information that you need to determine whether the item in question is good enough to buy and resell.

After installing the App, identify a local big box store in your area and walk in.  Stores like

  • Home Depot
  • Toys R US
  • Kmart
  • Walgreens or any other store in this category will work

Upon entering the store, find the aisle or clearance section. Once you are inside the aisle, use your phone’s camera to scan the barcode of those items in the clearance aisle

After scanning, check to confirm if you are eligible to sell the product as stated under the selling eligibility section. Also, check the sales rank as displayed up in the left screen corner. If you have already a Shopify store in Australia you can start selling on Amazon with Shopify

The sales rank

The sales rank is the information shared by Amazon to give us a good idea of how the product is performing in terms of sells on Amazon. If the rank reads 65 for the item that you just scanned, then that is not bad at all.
While we shall not discuss the rank in more detail, it is critical to know that the lower the number, the better your rank is. It is recommended to consider the sales that are below 250k. You can, of course, play around with this figure as but initially, ranks falling below this figure are good to start with.
If the App reveals that you are eligible to sell the product yet the ranks is falling below your threshold, check and see if the item promises to give you some return on investment. For you to confirm this, click on the “gross proceeds “section, somewhere at the far right part of the App.
You will then punch in
• Your selling price
• Your shipping cost to Amazon
• The much you can buy the item for
At this point, you will want to go through two quick checks,
1. To see if the net profit number is higher than the minimum profit threshold. If for example, you set the amount at $ 3, it means that you will not purchase any items that will give you a profit less than that figure. Making a net profit below $3 on every unit can expose you to the risk of losing all your profit in case the price drops even a little bit.

2. In case this item is at your minimum profit threshold, then go ahead and calculate the ROI. This can be done by dividing your net profit by the item cost.
Sellers who may be just starting on Amazon are advised to go for items with an ROI percentage that is above 50%.
If you find an item that fulfills all the purchasing requirements you can go ahead and buy even six of them.
You can then repeat this process on all other items in the clearance section. While getting started, scan as many items as is possible but as you do this more, you will instinctively find yourself beginning to avoid scanning those items that do not look viable for resale.
It’s highly recommended that you undertake the whole process of qualifying an item for resale as advised above to enable you to quickly push aside the items that don’t meet your criteria and asses the next item.
After completing this stage, perhaps it would be wise to look forward and refresh your understanding of these two important questions
• How do I set the price for the items that I am selling on Amazon?
• How do I list these items for sale and get them shipped to the Fulfillment by Amazon warehouses?
So far we’ve covered some good ground concerning the aspect of deciding the items to sell. Perhaps it will now be wise to throw down some tips that may get inspire you to get started.

Conclusion

First, if the idea of selling with Amazon is appealing enough, then quit dreaming and go for it.  You can put the retail arbitrage ideas proposed in this post to the test and see how it all rolls out. Certainly, the process is going to be a great eye-opener. Whether you love it or not, you will take home something new. A few hours of the trial will clearly show you exactly how to respond. 

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