Blessed are the small brands for they shall sell (on Amazon)

A lot of customers come to see us because they have a product and want to sell more and better on Amazon. We are more than happy to help.

But the other day, a friend of mine came with a very good question: Amazon can sell about anything, what product should I develop to be successful? Is there a best guess of what has most chance to sell well?

In other words, is it easier or harder to have great sales on Amazon depending on the product? My answer is generally yes.

So what are the ingredients that make success easy(er):

  1. Small products (small package, light weight)
  2. High value products (between 100 and 300€ or $ end user price)
  3. Branded products

Logistics:

Online retailing is very much about logistics: being able to ship often and quickly. With Amazon you need to be agile, ship asap, get products returned. Amazon itself moves stock around between its stocks, its countries.

If the product is bulky the fact of moving the product around will simply kill your margin, and increase the internal costing on your product of Amazon (which will in return ask for bigger discounts to cover these extra costs, or cancel the product as CRaP Can’t Realize Any Profit).

Investment:

To drive your success on Amazon, you need to invest in marketing (Amazon Marketing Services), use content management tools (contact us for great tips on the solutions out there), you need to have room to run promotions, vouchers, and invest in marketing events of Amazon. If your unit price is high, this will give you more money to invest in the different tools you need to use.

Branded products:

Amazon strives to be THE place where all the products worldwide can be found. They are interested in listing brands, especially if they are not well distributed. You will raise the interest of Amazon, which is good for you, if Amazon starts to push your products – well, that will change things big time.

If your product is small, expensive, and with a recognisable brand – and on top, not yet well distributed – you have a great opportunity selling on Amazon. You will be able to build your success building on your margin, and step by step, grow your investment into sustainable business.

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