Is this the most underrated Amazon FBA product category?
Figuring out what to sell next on Amazon is the "small hinge that swings a big door". It's one of the most high-leverage activities a seller can do. And after working in 100s of different accounts in every niche imaginable I've noticed a pattern on what products do best. That's what I want to share today. When folks are just getting started on Amazon, their ideal "Amazon FBA private label" product is a mass market, consumer-facing item in a category like Home & Kitchen, Sports & Outdoors, or Pet Supplies. Like a spatula, yoga mat, or dog bowl. They're everything a PL product is supposed to be: high projected revenue, light in weight, 4x markup, non-seasonal, etc. Understandable. All the product research apps project high revenues for these mass-market products. But increasingly (and as we go deeper into the 2020s) these markets have a high barrier to entry. Incumbents with 10k+ reviews and lots of existing keyword ranking. Maybe they took investment and have money to burn on PPC. This is a "pay to play" game where the ASINs with page 1 keyword rankings make millions a month, but then sales drop off a cliff on pages 2 and 3. When folks come to me saying "it's hard to compete" my answer is: Well, it depends on what game you're playing ;) I have 2 different product categories "games" that will be very profitable (and super winnable) in the 2020s. Maybe this will help you with a future product launch. Or, gives you a new idea or two. (1) Business to Business I'm sure you've noticed that in the "Reports > Business Reports" section of Seller Central, Amazon shows you sales that you acquired via Amazon B2B customers. If you find that certain SKUs are doing well via B2B, you can lean into that. Make "bulk" bundles of your existing products so folks can buy them in higher quantities, and watch your cart values soar (this won't be relevant to everyone, but it'll help enough people that I find it worth the mention). So many businesses purchase things on Amazon because it's easy. And the prices are good. And again, you're exiting the ultra-competitive game of keyword ranking for mass-market commodities. As a bonus, if you can launch a product that businesses need to buy over and over again (recurring revenue) you can build a massive revenue base on Amazon over the years. Imagine that! (2) Industrial & Scientific I love this product category. Earlier this year, I met a brand doing upwards of 10m+/year on Amazon selling construction materials (like wiring, coils, etc.). Again, people aren't thinking about these categories as much. There's tons of room to play. Just check out these product categories from I&S: Lab Products Power Transmission Janitorial & Sanitation Digital Signage Food Service Equipment Agricultural Irrigation ^ each with dozens of juicy, "blue ocean" subcategories! Imagine the customer journey on these types of products: An individual or business needs it. They don't want to drive to a specialty store in their area to get it. So, they look online. And once you're online, where do you know and trust? Amazon. Then, they find your listing. Boom! :) So, I hope this has sparked something for you. And lastly: If you've got products that 'wow' customers, my team would like to speak to you about potentially running your Amazon ads on your behalf (which saves you time, and makes you more money). We generally do an introductory call to see if it's a fit. On the call, we will give you a free blueprint that you can apply yourself, or we can explore working together. You can book your call here:
All the best and talk to you then,