The Biggest Amazon Coupon Site In The World

Step 1: Identifying a Niche

When selecting a niche, consider your own interests, hobbies, or expertise. Selling a product that you’re passionate about makes the whole process more enjoyable and your knowledge and enthusiasm can help attract potential customers.

Once you have some ideas, make sure that the product is lightweight and low-cost, to keep shipping and inventory costs manageable, especially if you’re just starting out. For products like these, even a small increase in weight can significantly raise shipping costs.

Step 2: Conducting Market Research

The next step is conducting thorough market research. Utilize tools such as Google Trends or Keyword Planner to identify popular searches related to your product idea. Look for keywords that have high search volume but low competition.

Search online forums and communities to find out what customers are saying about similar products. What do they like or dislike? What features are they looking for that current products don’t offer? Use these insights to differentiate your product and fill a gap in the market.

Consider looking into platforms such as VIPON or CashCowPro which are specifically designed for Amazon product research. They provide comprehensive data about product demand, competition, average prices, and profitability in a given niche.

Step 3: Analyzing the Competition

On Amazon, you can check the Best Sellers Rank (BSR) to gauge the demand for a product. Products with a BSR under 5,000 in their main category are generally high in demand.

Also, consider the number of reviews and the average rating of the top 10 products in your chosen category. If these products have thousands of reviews and high ratings, it might be difficult to compete. However, if you find products with less than 500 reviews, it means the competition is still manageable.

Step 4: Verifying Sales Volume and Profit Margins

The ideal product should have a monthly sales volume of over 3,000 units among the top 10 sellers. This is a clear indicator of strong demand.

In terms of profit margins, look for products that can be sourced for 25-35% of the selling price, which means a profit margin of 65-75% before Amazon’s fees. This will allow you to earn a substantial profit while leaving room for potential discounts and marketing expenses.

Step 5: Checking for Legal and Regulatory Restrictions

Before finalizing a product, check if it falls under any kind of legal or regulatory restrictions on Amazon. Some product categories are gated, meaning you need pre-approval from Amazon to sell them. Other products may have restrictions due to safety concerns or intellectual property rights.

In conclusion, finding a profitable niche product to sell on Amazon FBA requires a mixture of personal interest, thorough market research, competition analysis, and careful consideration of logistical and legal factors. While this may seem like a daunting task, with the right approach and resources, you’ll be well-equipped to find a winning product that can establish your brand and generate a substantial income on Amazon FBA.

A lot of Amazon sellers have a rather functional attitude to pricing. They set up a repricing mechanism and they say “Let me have the second lowest price on Amazon for this type of product”, and off they go.

Some are not so clever. They set up a repricing mechanism and say “Let me have the lowest price.” And so does someone else. They will now battle to the death, or till one of them runs away.

So let’s look at pricing as something like Game of Thrones, instead. Remember that every price sends a message, and that while customers have one perception of it, your rivals have their spies out and they may be reading something else into that message.

Having the lowest price on the market all the time is a Ser Gregor Clegane move. It says you have the brute strength, the inventory and the product margins to take on all comers and win. But if you don’t, sending that message is a really dumb thing to do. You just have to hope that the real monster fighters don’t want to take you on.

Hovering around the bottom of the market is quite a sneaky move. It’s the kind of move Petyr Baelish would pull, or maybe Varys. You compete quite hard, you’ll probably get good rankings and good sales, but you’re not striding out into the arena to take on all comers.

However, you might decide to price your product a bit higher because it’s better. If you have great reviews and a higher specification product, you may want to do this. Pricing such a product low sends a message that maybe it’s not as good as you think it is. (Remember Sansa Stark before she got smart?) Price a bit higher, and you’re saying “Yes but look at the features”.

(You’re also making a better profit margin, of course.)

There are a few products which price right at the top. These are the Cersei Lannisters and the Margaery Tyrells. If you have a product like this, it has to be top price. If Louis Vuitton or Hermès had a dollar sale, they would destroy their brands completely.

Needless to say, this may not look like a ruthless place to compete, as everyone is being terribly polite and ceremonious. But in fact, it’s probably one of the most ruthless markets of all, and if you watched Game of Thrones attentively, you know that!

However, if you have a product that’s truly exclusive, Amazon is probably not the right place for it. When Sansa Stark got ‘sold’ to Joffrey, it wasn’t in the marketplace, it was in a council chamber.

However, occasionally pulling a surprise tactic can work out spectacularly well. Arya Stark and Tyrion Lannister are your role models here. The surprise tactic on Amazon is the promotion, whether it’s a Lightning Deal, a coupon discount, a Prime Day special, or a limited period offer. If you don’t usually go out swinging your sword for the lowest price, your opponents won’t be expecting it, and you can cut their legs from under them. Carnage!

Or rather, for you, a nice boost to your sales.

It’s a great tactic because you can use it in so many situations. Surrounded by enemies, too much inventory, running out of cash? Pull your surprise tactic, sell the excess stock, get a cash boost, and you’re back in the game. Or doing well but just need to get that bit further, like Stannis Baratheon talking to the Iron Bank? Surprise tactic, boost your sales, move into another league.

Start thinking about your price as both a message and a weapon. It’s Game of Sales on Amazon, today and every day!

Amazon is making a small but potentially important change to product pages. In future, if products have a high percentage of returns, Amazon will flag them up as “frequently returned”.

Returns are a big issue. In 2021, online purchases worth over $750bn were returned, and many Amazon sellers end up throwing away about a third of all returned product.

Amazon isn’t going back on its generous (to customers) return policies. Its customers have the right to return goods within 30 days. However, products should ideally be unopened and unused, and must be in the original condition. You can’t eat one biscuit out of a packet, decide you don’t like them, and return the rest of the packet! (In fact, groceries are an exception to the return process, as are customized items like print-on-demand tee shirts.)

However, it has introduced a $1 per return charge for UPS returns, though customers can still drop returns off at Amazon locations like Kohl’s or Amazon Fresh. Amazon might also  send warnings to customers who have a high rate or value of returns, and in extreme circumstances might even close their accounts.

But that “frequently returned” tag could scare customers off your products. Of course it also means you’re losing money on all those returns, particularly if they aren’t returned in a state that makes it possible to resell them. Fortunately, Amazon is also going to give you a new tool in Seller Central to help reduce returns; Return Insights. This will give you plenty of metrics; returns by ASIN, by return category, by units, by percentage, and over time (eg last 30 days vs last 60 days, so you can see if things are getting worse or better).

Pick the products which have the worst returns record to look at first. Of course, if you have a product with the “frequently returned” label showing up, that’s your first priority.

Look at the reasons why these products are being returned. You might also want to look at competing product pages and see whether the product reviews mention returns, and whether there are details or types of photo on those pages that you don’t have on yours.

Then you want to refine and improve your product listing. For instance,

•      you might to add higher quality images giving a more complete view of the product;

•      you might want to add sizing information, and a guide to exactly where to take particular measurements;

•      you could add technical details;

•      you might add the composition of a fabric (100% cotton or 70% viscose?);

•      you might include details of compatibility with other products;

•      you could show pictures of the product with someone using or holding it, or in a hand, so that potential customers can easily grasp the size of the product;

•      you might add a how-to video so customers know how to unbox, install, and use their new products correctly.

It’s also worth paying real attention to color accuracy. In clothing and accessories, but also home decor, customers who find the color isn’t what they thought they were getting from the picture on the product page will often return it.

If your returns are due to products being damaged in transit, it’s worth trying to redesign your packaging to protect the product better.

Understanding your customers can be tricky, but it’s something you really need to do. A really nerdy example is a fountain pen returned by a collector because it had clearly been inked. In fact, the seller has a policy of testing every pen they sell by writing with it before they send it out. They now make that clear in their product description.

In this blog post, we’ll uncover the secrets to effectively managing your Amazon FBA inventory, ensuring you never run out of stock and lose sales or rank. Follow these expert tips to optimize your stock levels and keep your business thriving.

1. Reorder Size Calculation: The Perfect Balance

To determine the ideal reorder size, use this simple formula:

Average Sales Per Day x Lead Time to Re-Stock in Days

For example, if you sell 10 units a day on average over the past 30 days, and your supplier takes 60 days to produce and 30 days to ship the product, your reorder size would be:

10 units a day x 90 days restock time = 900 units.

This calculation is a good starting point, but let’s dive deeper into the nuances of inventory management.

2. Smart Ordering: Save Cost and Simplify Logistics

Instead of relying solely on the above formula, consider your business’s unique needs. Aim to have enough stock to cover the next three months, arriving just in time as the previous three months’ stock sells out.

By ordering larger quantities, you can save on product and shipping costs and simplify the process by reducing the number of orders per year. But, before placing an order, take the following factors into account.

3. Sales Velocity: Adjusting for Trends

Monitor your sales trends closely. Are your sales increasing or decreasing? If your sales have been growing rapidly, base your reorder size on the last 30-60 days’ sales average. For stable sales, use a longer timeframe like 90 days. Always adapt your reorder size to your product’s current performance.

4. Buffer Stock: Plan for the Unexpected

Unforeseen circumstances can cause delays in shipments, inventory processing, or supplier production. To account for such events, keep an extra 2-4 weeks’ worth of stock in Amazon’s warehouse. This safety net ensures you can continue to fulfill orders, even when things go awry.

5. Track Key Metrics: Stay Informed with Our Tools

Utilize tools like CashCowPro to regularly check your inventory levels. With its dashboard and inventory features, you can easily monitor your daily sales and stock depletion dates for each product. This information is invaluable for making informed decisions about reordering.

6. Seasonality: Adapting to Fluctuating Demand

Account for seasonal fluctuations in demand when reordering. Avoid basing reorder sizes on peak seasons, as excess stock can tie up cash and incur additional storage fees. Adjust your reorder size according to your product’s typical sales patterns throughout the year.

7. Holiday Delays: Factoring in Festivities

Stay informed about local public holidays as well as your supplier’s holidays, such as China’s Lunar New Year. Factories may close or operate slowly during these periods, so adjust your lead times accordingly when reordering.

8. Lead Times: Monitoring Supplier & Shipping Dynamics

During peak seasons, both supplier and shipping lead times can increase. Check with your supplier a month before reordering to verify whether lead times have changed, and be prepared to adjust your reorder schedule if needed.

Conclusion

CashCowPro is an invaluable tool for tracking product sales and inventory forecasting. To optimize your inventory management, maintain a buffer stock in Amazon’s warehouse and stay up-to-date on sales trends, supplier lead times, and seasonality. With these expert tips in mind, you’ll be well-equipped to maintain a consistent stock level and keep your Amazon FBA sales soaring.

Amazon’s search engine considers various factors when ranking products, such as sales velocity, historic sales, and conversion rates. If you’re new to Amazon, focusing on improving your conversion rate is crucial for success. In this blog post, we’ll explore several strategies to boost your conversion rate, which in turn will enhance your search ranking.

1. Leverage Social Proof

Social proof, such as recommendations or endorsements (preferably with photos), can significantly impact a buyer’s decision. Highlight your product’s previous success or improvements, and engage influencers to promote your product. Additionally, social proof on Amazon often comes in the form of reviews.

2. Acquire Reviews

For newcomers, getting reviews can be challenging. However, Amazon offers two programs to help: the Early Reviewer Program and the Vine Program. Enroll in these programs to obtain valuable reviews, and make use of the ‘Request a Review’ button in Amazon Seller Central. Including a review request with your product is also beneficial, but follow Amazon’s guidelines carefully.

3. Optimize Your Product Listing

Ensure your product listing is of high quality, with relevant keywords, convincing feature and benefit statements, and answers to common customer questions. Don’t overlook essential information like dimensions or color options, and emphasize safety for products intended for children or pets.

4. Use High-Quality Photos

Photos play a vital role in attracting customers. Utilize all available photo slots, include at least one lifestyle photo, and showcase relevant infographics for your product. High-quality images can significantly enhance your listing’s appeal.

5. Engage with Customers

Promptly and thoughtfully respond to customer inquiries, providing detailed and helpful information. Building a reliable knowledge resource and demonstrating genuine care for customers can strengthen trust in your brand, increasing the likelihood of a purchase.

6. Utilize A+ Content

A+ Content, also known as Enhanced Brand Content, allows you to showcase your brand story and product features using rich media elements like images, videos, and comparison charts. This enhanced content can make your product listing more engaging and informative, increasing the chances of conversions. Make sure to optimize your A+ Content for both desktop and mobile users for the best results.

7. Offer Competitive Pricing and Promotions

Customers often compare prices and promotions when shopping online. By offering competitive pricing and attractive promotions like discounts, free shipping, or bundle deals, you can entice potential buyers to choose your product over competitors. Monitor your competitors’ pricing strategies and adjust yours accordingly to stay ahead of the game.

8. Monitor and Optimize Your PPC Campaigns

Sponsored products and pay-per-click (PPC) advertising campaigns can help improve your product visibility and increase conversion rates. Regularly monitor and analyze your PPC campaigns to identify high-performing and low-performing keywords. Allocate your advertising budget effectively by focusing on the keywords that drive conversions and sales. Additionally, optimize your ad creatives and targeting options to reach the right audience and maximize return on ad spend (ROAS).

By implementing these strategies, you can improve your conversion rate and, in turn, boost your Amazon search ranking. Remember to always stay relevant and ensure your content aligns with the keywords that brought customers to your listing. By doing so, you’ll increase your chances of turning browsers into buyers.

Amazon’s mission is to be “the most customer-centric business on earth”. That’s been key to their success; they learn from their customers. You, too, could probably benefit from leaving products and sales on one side for a moment, and starting to think like your customers.

For instance, think about why your customer has headed to Amazon in the first place, instead of shopping ‘bricks and mortar’.

•      Do they want to get a better price? Or to get a multi-pack?

•      Are they shopping for a specialized product that the stores don’t stock?

•      Do they want to see the full range of what’s available?

•      Do they want to do without the hassle of bricks and mortar shopping, for instance if they need a new pair of jeans that’s the same as they had before?

•      Do they want a bundle of products rather than just one item?

For instance if someone’s getting started out in a new hobby, if they have a friendly local craft store they might go there. But otherwise they might go on Amazon to see if there’s a “Get started painting” or “Beginner decoupage” kit they can order. Or if someone has a new puppy, they can go to Pets R Us, but they can also order everything on Amazon, and it’s less hassle, plus they can see the customer reviews.

Once you’ve thought about why your customer went online, you can tweak your offering to suit. For instance, for specialized products, how can you help them make their purchasing decision? What kind of information will be important to your customers? What do they need to know to make sure they’re getting the right product? If you sell a widget, you might have a video showing “how to measure your XYZ so that you know you’re getting the right size widget”.

Think about why your customer is getting this product on Amazon. They’re not looking for your product or ASIN, most likely, they’re looking for an idea they have in their mind. They want to fix a problem, to suit a mood, to find a present for someone or to treat themselves.

So they may not look for “yourproductname” as a keyword. They’re looking for “help, my tap’s dripping” or “that shocking pink handbag my friend’s got” or “what can I get my Dad for his birthday that’s not predictable?” Some customers will look for dehumidifiers, others will search for “stop damp and mold”.

And once they’ve got your product, what are they going to do with it? Can you help them get more out of it? So for instance if you sell a special lens attachment for phone cameras, have a short video showing clearly how to attach it, and with some ideas for the kind of photos your customers might want to take with it. Or with a set of barbecue skewers, you could include some recipes, maybe with some vegetarian and vegan recipes and a couple of salsas to go with the barbecues.

Another way you should think like a customer is to think about the unboxing experience. What is the customer going to feel when they open up the package? How can you present things to help or delight them? How can you exceed expectations? How can you minimize returns? You might include a small thank you slip as part of the package, or instructions for how to put the product together. For an art or aromatherapy bundle, including a simple leaflet with some ideas for using the different products will not add much to your cost but can really improve your customer’s experience.

This may not help you sell, but it really will help improve your reviews. And in the long run, that will also benefit your bottom line!