Sourcing Profitable Products
Guest Post By: Daniel Alsryani - Sales Project Manager at Seller Candy
Sourcing the right products is a constant uphill battle, without sinking into that rabbit hole to put things simply and butcher the complexity of product sourcing we can consider offering products shoppers want at a better price than your competitors. In other words, we give shoppers an offer they can’t refuse!
But how do you find high-demand products?
Have no fear to help you out. Seller Candy is here!
We created this simple guide to get you started with your sourcing battel.
The Product Hunt
There are 3 main strategies you can base your product hunt on:
1. Unique Products:
You read that right, unique! Amazon may be a vast sea of countless products and variations but it sure doesn’t have every product out there. With this strategy, you’re looking for unknown products or very new ones.
We’ve all seen those Instagram posts advertising a product we’ve never heard of before, Take the ear pods cleaner, a seemingly biennial product that all of a sudden got pushed by so many sellers and influencers that if you search for it you’d find a whole bunch of different listings at different prices for what seems to be the same product over and over.
I know finding truly unique products is easier said than done but, by keeping an ear to the ground, eventually you’ll always be able to find something new or an emerging product. Once you do, get to work on getting it on your store as fast as humanly possible.
2. Cutting Prices:
We all considered cutting prices on products before it only seemed too intuitive to pass up! But you’ll soon realize that this strategy doesn’t work for all products out there. Coupled with the previous sourcing strategy you can potentially find a high-demand, low-saturation product!
Let’s consider the ear pod cleaner example again. At some point, this product was emerging and most sellers were inclined to price at high-profit margins which makes sense due to the low competition. Yet some sellers sourced lower quality versions and priced at a much lower price than their competitors thus securing a foothold in that market.
As relatively unknown or inexpensive products shoppers are more likely to hunt for lower prices for trivial or unfamiliar products.
Always be careful when executing this strategy as you risk competing with bigger sellers who can afford to spend more, and that’ll mean you’re in a race to the bottom.
3. Unsaturated Niches:
With this strategy, the idea is to find a niche with lower competition and fewer offerings (this highly depends on the Amazon marketplace you operate in). Shoppers in this niche are more likely to spend more money to satisfy their needs rather than hunt for the best bargain.
Let’s take the UK marketplace example, it offers few options when it comes to AMD Advantage laptops, any shopper looking for this specific quality has to choose between either paying a higher price for those laptops or finding a different product that doesn’t fit their needs.
Just like finding unique or emerging products, you have to keep your ears to the ground and watch out for opportunities in any niche in your marketplace. Finding such a product can be rewarding not just in terms of increasing your sales but boosting your profit margins.
Product Hunting Tools
Alright, we know what prey we’re looking for. Now, it’s time to go over some tools that’ll help you bring the bacon back home.
It’s no secret what products are selling on Amazon, just check the bestseller list and you’ll find very well-established products that are popular with shoppers. However, you need to keep in mind that competition is very high for these products and you’ll need to have a very cost-effective sourcing strategy if you’re looking to compete for these sales.
Trends & Keyword Research
If you’re more of the risky type, you can check the Trends Report which highlights the trends in searches in the past year. Some trends or products may not continue to be popular but if you fancy yourself to have a good eye, it could be a solid inspiration for your next product hunt.
Product Research Tools
Finally, there are many research tools out there that’ll help you pick your next product. Those tools can show you products’ popularity and competition rate to help you pick one that hits the sweet spot between the two stats. Of course, these tools are paid and often vary in usability depending on your needs and the level of information they can provide. It’s best to take your time picking such tools while keeping in mind your own business model.
There are many different strategies you can use to source your products but no matter what you choose each strategy has its ups and downs, pros and cons, and its own process and challenges. To find the right strategy for you, you’ll need to ask yourself the following questions:
What are you looking to achieve with this product?
How much can you invest in this product?
Does your strategy fit in with your business model?
Why does it always feel like we’re in constant competition with the world when selling on Amazon? Well, there’s no pretty way to say this but the truth is we are in an ever-green competition not to mention the ghost in the attic Seller Central. Imagine having to spend so much time and resources finding the right product to source, only to be hit with random suspensions, IP violations, or the usual templated response hell any time you want to get anything done. Well, Seller Candy’s got your back, we’ll bust that ghost while you focus on what matters! Use code ‘AccrueMe’ to get $100 off the first month of an Unlimited Seller Package from Seller Candy HERE.
About the AccrueMe Guest Post Author…
After almost 6 years of working as a sales professional in the e-commerce world, Daniel Alsryani learned what it takes to build a successful sales process. Since then he's become passionate about delivering the best value possible. Today as a member of the Seller Candy team he gets to work with a product he believes in; removing the stress of working with Amazon to help sellers along their success journey.