How do you find the ‘perfect’ product to sell on marketplaces such as eBay or Amazon?
Last week I pointed to several factors – proven sales, exclusivity, high profits, low competition, evergreen qualities.
Today I’d like to complete the formula, pointing to features that will help you find products that will become a regular bestseller.
#6. Passive Income
First let’s agree that we want a product that continues making money in the short or long term without any intervention on our part. The commonly quoted example is of a digital product which, once created and listed for sale, is paid for and downloaded by purchasers.
After uploading the product, you can let the listing run indefinitely, and only be involved in updating product and listings and handling the odd question from enquirers and buyers.
That is how digital products work at Amazon Kindle and Etsy, and numerous other sites, where payment is taken by the hosting company and paid to sellers at regular intervals. The hosting company tells buyers where and how to download their product and deals with after sales complications such as failed payments, delivery problems, and so on.
Similarly, if you use FBA – Fulfilment By Amazon – you can source products, package and send them to Amazon, and then leave Amazon to take payment and deliver goods to buyers. Every so often, Amazon will send money to your bank accounts.
– Find an affiliate product likely to interest people buying from you on eBay, Amazon, Etsy, and other sites. Add the affiliate website link to a compliments slip that goes inside all outgoing packages and expect it to generate passive income for you.
– Dropshipping works well, sometimes, and can be one of the most profitable of all product sourcing techniques. The process works where a seller finds a company willing to deliver goods direct to buyers. You create listings using the dropshipping company’s images and product descriptions. When a sale is made and payment passes, you send part of the money along with the buyer’s name and address to the dropshipping company which then delivers the goods. The process can be incredibly profitable with product sourcing overheads low or non-existent. But you live or die by his choice of dropshipping partners and careful planning is imperative.
#7. Maximum Return on Listing and Final Selling Fees
The lower the proportion of profits given to third party companies like Amazon, eBay, domain name and hosting companies, and so on, the greater the amount going into your bank account.
It’s no secret that eBay and Amazon take a larger share of a seller’s profits than most other third party marketplaces, while also being the world’s most effective place to auction goods (eBay) and one of the world’s largest traffic eCommerce sites (Amazon).
Much lower fees are paid to Etsy, Bonanza, and other up-and-coming and limited traffic marketplaces, but you make fewer sales for similar products on eBay and Amazon.
To maximise your costs to earnings ratio, you should keep careful records of number of sales and listing fees for various products in different marketplaces. You should list where ROI – Return On Investment – is most cost-effective in terms of money, time and effort invested against profits achieved for specific product types at separate sites.
#8. Substantial Back End Selling Potential
Back end selling describes marketing goods likely to turn a first time buyer into a regular customer and is more effective for items requiring constant replenishment or matching precise buying interests.
So someone who buys soap and likes it will probably buy the same product again and possibly purchase complementary products with the same ingredients and perfume, such as bath bombs, talcum powder, hand cream.
Much the same goes for people with identifiable long term passions, such as collecting, painting, knitting, photography, and more besides, who might continue buying from the same sellers over the lifetime of their mutual existence.
eBay provides a newsletter for sellers to send to subscribers wanting to learn about new products and special offers.
#9. Matches Trends at Major Independent Selling Websites
Tip: the fact that a major company lists a product usually means the item has been subject to extensive research and market testing, sometimes costing thousands or millions of pounds.
A good example is Not On The High Street – http://www.notonthehighstreet.com – which brokers between buyers of exclusive and unusual hand manufactured products and their creators. Some of the highest priced and most unusual products are sold at the site with new products appearing daily.
From talking to colleagues designing and manufacturing their own unique hand crafted designs, Not On The High Street is incredibly fussy about quality and only promotes goods after extensive market testing. Firms like Not On The High Street provide inspiration for our own products and designs as well as being a potential selling partner for talented makers and their agents. Find more role model sellers by Googling something like:
Highest profit private label skin creams
#10. Unrestricted All Site, All World Selling
All third-party marketplaces set their own specific rules and regulations, including what can be sold at their sites and what cannot be sold. From experience, I consider eBay the pickiest and most unpredictable of all, given they often apply reasons for banning one product to numerous other unaffected items.
Some goods, for example, are banned from sale in certain countries, such as alcohol in the Middle East and poor quality toys in most advanced countries.
The wise seller will study all potential marketplaces before introducing a product for sale and will choose goods with all site, all country marketing potential.
#11. Easy, Profitable Exit Strategy
The biggest profits sometimes come when a business is put up for sale and that’s why some businesses choose products and marketplaces reflecting a carefully planned exit strategy.
Things to consider:
– A domain name and website accompanying a high profit product or business set up is a big selling point and accounts for the major portion of resale prices. The domain name should reflect the type of products on offer and the website can be a simple link forwarding the domain name to an eBay or other marketplace venture.
– As discussed previously, it’s difficult, but not impossible to sell an eBay business and much easier to sell an Amazon based venture.
And there you have it, eleven signs of a product that could make you more money than you ever dreamed possible, with even more ideas provided in our main newsletter eBay Confidential.
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