As more customers shop online, selling products in 2023 means embracing e-commerce. It’s a great time to begin selling on Amazon in particular, but this means finding profitable items to offer.
The process of selecting products to sell in 2023 can be intimidating. With so many options available, and many factors to consider, it’s easy to make the wrong decisions. Taking a leap of faith without gaining knowledge of the market or demand for a product is a mistake new sellers can easily fall victim to.
Here, we will explore how to emerge successful by researching your product choices. Let’s look at the steps you’ll need to take as you choose profitable products to sell in 2023.
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How Does Product Research Work?
It’s understandable if you find the idea of doing research daunting, but it is essential if you want to sell profitable products. This is not a time to simply select items you enjoy or have a good feeling about; you must back up your decisions with data.
Before committing to selling a product you must find out more about the product niche, as well as the demand for the product, and its potential to be profitable.
Product Research Criteria
- Is the product perishable?
When a product has an expiry date, this means you will have to estimate your inventory with keen precision. If your stock levels are too high, you may not be able to sell enough of the product before the expiry date passes.
However, perishable consumables can also lead to repeat buyers since customers will need to keep purchasing the product as they use it up. - How complex is the product?
If a product is made up of many components or involves complicated mechanisms, there is a greater chance that it will break or be difficult for a customer to use. This can mean more returns, and bad reviews – and neither of these is good for your bottom line.
If you choose a product with many moving parts, such as an electronics item, make sure you have built in the capacity to cope with additional admin and faulty items. - What is the product’s selling price?
If the product’s price is too low, this can make your profit margin smaller, and decrease your ability to maneuver in the market. On the other hand, high price points may decrease the number of customers able to afford your product. Consider aiming for products with prices ranging from $20-$50 which will place you firmly in the realm of impulse purchases, but also provide you with enough of a margin to breathe. - What is the size of the product?
New Amazon sellers sometimes forget how important it is to consider a product’s weight and dimensions. As a product’s size goes up, so do the costs of storing and shipping that product. For this reason, it is advisable that unseasoned sellers begin by selling smaller and lighter items. Think earrings, not deck furniture.
How to Explore Product Ideas
Now that you know a little more about what to watch out for when selecting products to sell, how do you come up with fresh product ideas?
- Take a look at what’s trending: Find out what products people are talking about by exploring social media platforms, especially TikTok. If you can catch wind of a trending product early, this will be great for your bottom line. Beware of fads though, as flashes in the pan can mean you are left with excess stock and no buyers.
- Reflect on your own interests: If you sell products related to one of your own interests, you’ll have an edge since you truly understand what customers are looking for. Remember, you still must critically evaluate your product choices to ensure they are wise investments. Take care not to get carried away by your personal enthusiasm for an item.
- Check out Amazon’s best sellers: Amazon’s Best Sellers Rank list can give you a window into which products consumers are inspired to buy. You can explore different product categories on this list to get a more nuanced understanding of what sells. If there is a lot of enthusiasm for the type of product you are interested in selling, this is a green flag.
- Look at Alibaba: If you want to source your products at competitive prices, consider heading to Alibaba. This platform offers almost every product you can imagine, and you may discover products that you can private label to sell under your own brand. You can also explore Aliexpress, a site related to Alibaba, that caters more to individual buyers rather than bulk purchasing.
Assess your Product Ideas
Now that you have a few ideas for products to sell, it’s time to evaluate whether or not they are wise choices. Even if you are excited about a product, and have a good feeling about it, you must take the time to critically consider its viability.
Before you begin selling a product, assess the following:
- Competition: You may have found the perfect product to sell, but this won’t do you any good if everyone else is selling it too. Examine the number of sellers already offering your prospective product and ask yourself if you can stand out from the pack.
- Seasonality: Although seasonal products can be profitable, products that hold appeal all year round are a safer bet for you as a seller. If you decide to offer seasonal merchandise, be sure to order the right level of stock.
- Profitability: Consider whether you will be able to source your product for a price that allows you a decent profit margin. Don’t forget to factor in additional costs such as storage, advertising, and selling fees.
- Marketability: When you look at your product, do you have a clear vision of how you can promote it effectively? If the item does not look appealing in photos, or if it is difficult to explain what makes it useful, this isn’t the product for you.
- Demand: Finally, find out if customers are looking for the type of product you are interested in selling. Without interest from customers, your product will fall short of profitability. Using Amazon’s Best Seller Rank list can be a wise move as you decide whether a product is going to catch the interest of buyers.
Going Forward With Your New Products
Hopefully, you have gained a deeper understanding of what goes into wise product selection. As you go forward selling products in 2023, remember to keep your eye on the data, and always back up your choices with research. As you discover new products to offer this year, take note of the product’s practical attributes as well as the market demand. If you make the right selections, 2023 could be a profitable year for your business.
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