Hey there, Mark Mason here from the frozen tundra of Dallas, Texas, bringing you Episode 252 of the Late Night Internet Marketing Podcast. In this episode, we dive deep into the intricacies of sourcing products for Amazon FBA. I share key strategies to ensure profitability, from understanding market demand using tools like Jungle Scout, assessing competition, to calculating profit margins accurately. Remember, it's all about selecting products that sell well while maintaining a good profit margin. Check out my checklist at latenightimcom/amazon for more insights.
- Market Demand: Utilize tools like Jungle Scout to gauge if products are selling well on Amazon.
- Competition Analysis: Understand the number of sellers versus product demand; this ratio is crucial for inventory turnover and profitability.
- Profit Margin Calculation: Deduct costs like Amazon fees and product sourcing from the selling price to ensure a viable profit margin.
- Supplier Reliability: Ensure you're working with trustworthy suppliers to maintain a steady product supply.
- Inventory Turnover Rate: Be wary of slow-moving products; your capital shouldn’t be tied up in stagnant inventory.
- Amazon Compliance: Stay within Amazon’s rules, especially for restricted categories or high-liability products.
- Seasonality and Trends: Be cautious of seasonal products and fleeting trends that can affect sales consistency.
- Scalability and Adjacent Products: Look for opportunities to scale and expand within the niche.
- Winning the Buy Box: Focus on maintaining strong seller metrics and competitive pricing to win the buy box.
- Google Analytics Setup: Highlighted the importance of setting this up correctly for long-term tracking and analysis.
Resources and Links
- Jungle Scout for market research: latenightim.com/jungle
- Product Selection Checklist: latenightim.com/amazon
- Aiden's Case Studies for FBA Products: latenightoffer.com