Do you know product research is one of the most important steps in setting up your Amazon business?
Though simple formulas are available to guide you to a winner, eventually getting one is not as easy. If you’re a beginner, the more reason to be extra cautious.
One small blunder during product research may lead to big losses. Here are a few of the mistakes you should avoid:
1. Failing To Differentiate
With more sellers on Amazon, there’re plenty of similar listings for the same product. If buyers can’t distinguish your product from the many others available, it may lead to fewer sales.
To stand out from the crowd, product differentiation is the way to go. Pick a product you can uniquely modify to your advantage.
At one point, Amazon’s private-label business model was easy. You could simply pick a popular product, slap on a label, ship it to a warehouse, and began collecting your money. Not anymore. Differentiating is now a necessity.
2. Not Factoring In Amazon Fees
Setting up a business requires a financial investment. A big fraction of capital for Amazon business is needed upfront. Before settling on a product, factoring all costs at the beginning enables you to keep afloat until you break even.
The most obvious expenses are manufacturing and shipping costs. Failing to factor in Amazon fees is a common mistake especially among newbies. Use the FBA calculator and key in a similar product’s ASIN to get the amount you’ll need to pay for Amazon fees.
Determining your Amazon fees also gives you a better estimate of your potential profit margin. This will help you decide if the product is worth your while or not.
3. Selling Patented Products
Patented products are a no-go zone. The penalties could cost you your Amazon account and hence your whole business.
For beginners, figuring out if a product has a patent may not be so obvious. A few red flags to pick are products having strangely low competitors and yet pretty high demand. This should make you tread carefully.
To confirm if there’s a patent, look up the item on USPTO. A better way is to get a patent lawyer to look it up for you. You can easily find one on Fiverr to conduct the search and give you a comprehensive report.
4. Selling Breakables
Breakables are obviously not forbidden on Amazon, but for first time sellers, products that easily break may not be your best option.
Breakables include items made of glass, products with several moving parts, and electronics. Chances of these items getting damaged during shipping are high. This may result in an increased number of returns, hence dropping your revenue.
Before opting to sell breakables, ensure you get a reliable supplier, quality products, and have proper packaging to avoid breakage during shipping.
Learn From Your Mistakes
At the end of the day, if you make any errors in your product research, the best thing is to not give up. Assess what went wrong, pick yourself up, and try again. The road to success is never without challenges.