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The success rate for the first- time sale on Amazon is about 15 percent, and that will jump to about 50 percent in the long run. There are many factors to be considered apart from the product itself during product selection process. If you don’t find the right products to sell, you won’t be able to meet the requirements of your customers who often have many other options. Below are dos & don’ts during products selection of Amazon dropshipping.

1. Take full advantage of software tools

Use software and apps to help you. If you have good insight, it is possible to search for suppliers manually, but that is not sustainable in the long run. It is crucial to choose the right dropshipping products with the help of some softwares, such as AmazeOwl, amz. One, AMZScout, Helium 10, Jungle Scout Web App, etc.

2. Select products by evaluation

When looking for potential dropshipping products, you can filter by evaluating quantity and quality.
For quantity: Select products with reviews but should not be excessive. Because a small number of reviews means the product may be on the rise of sales, but too many means you will face fierce market competition. There’s a browser extension called Amazon Sort which helps you rort products by number of reviews.
For quality: Avoid any products with a rating below three stars, which may cause many problems in sales. Moreover, avoid products with five-star ratings, which can often be false.
When you look at reviews from other sellers, please check whether the negative reviews are of the same aspect. If so, it’s a strong signal that the quality of that product need to be improved before selling.

3. Place products in the best selling position

The sales ranking of products indicate their popularity on Amazon. Avoid products that rank too high in sales, or you will face fierce competition in the market.
It is suggested to sale a product whose rank is within 100 thousand, but do not choose a product that rank too high. Be sure to keep in mind, the ranking of sales vary by categories. For example, a product with a rank of 100 in one category may may as more popular as a product with the same rank in another category, because its popularity is related to the number and ranking of other products in that category.

4. Know the number of sellers in the category

Another factor need to be considered is how many sellers you will be compete with. Categories such as electronics and clothing enjoy the largest number of sellers, therefore, they tend to be the most competitive items. If you have a small start-up budget, aim at a smaller niche market with fewer competitors. There are three general advantages of niche market for most of sellers.

*Fewer competitors: Your may face relatively little direct competition when selling niche products. This is true even if selling unique products on Amazon and Wal-mart.
Take physical retail stores for example: Wal-mart sells bicycles, but there are also many successful specialized bike stores. There is mainly because Wal-mart tends to sell in expensive bikes, while specialized stores offer high-quality products. Walmart is not a bicycle specialist, and in most cases they don’t help fix bikes, but local stores do.

*More content marketing: If your business utilize content marketing, it will be easier to position your company as a leader or expert in your field.
Take the local bike stores and large department stores as an example, local bike stores have more bike knowledge than department stores so that they can position themselves as bike experts.

*Search engine optimization (SEO): The survival of new e-commerce companies often depends on SEO. General keyword phrases can be more difficult to rank than long tail keywords or niche phrases. As a result, it’s easier for niche products to drive traffic.

5. Focus on the cash rebate of certain products

As an easy way to get fund without extra cost, cash rebate is popular on credit cards. Buyers often get a cash rebate in return if paying by credit cards, and some websites and stores are likely to follow suit. So if their product meets your requirements, you can take them into consideration. They provide cash rebate so you can generate additional revenue. more income.This is an easy way to get funding at no extra cost.

6. Skip the products that are under brand restrictions

Products that are under brand restrictions are not necessarily banned from Amazon, but sometimes you need to apply before sell on the platform. While this is not entirely discouraged, it is recommended to focus more on products that are easier to get started with.
Here are a few products that under brand restrictions:
Apple, Beats by Dre, Columbia, Kong, Microsoft, Rosetta Stone, PetSafe, Yeti, etc.
Unauthorized sellers who profit from registered well-known trademarks may encounter a lot of trouble for violating the brand awareness and brand value. Cause it is closely related to brand image, such as harry potter, Disney and Pokemon GO, etc.

7. Do not compete with brands

Finally, avoid dropshipping products which are already registered, because those brands are allowed to be the only authorized sellers on Amazon, which does not contribute to your business.
Even if a brand is not the only authorized seller on Amazon, you still have to compete with their resources, sales history and popularity. Moreover, it is rather difficult and fierce to competing and winning customers’ hearts for their high consumer loyalty and satisfaction.

Related Entries:
https://source.cjdropshipping.com/2019/07/05/how-to-select-profitable-niches-for-dropshipping/

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