The Importance of Sourcing the Right Product From the Start for Amazon Sellers
How important is it to source the right product for Amazon sellers? Let’s put it this way: not having the proper (or enough) data at the outset, can easily be the difference between success and failure. And wouldn’t it be a shame for a product to fail just because of the lack of proper data?
Sourcing the right product is a bit like taking out a brand-new sports car for a spin: if you don’t pick the right tires, the right engine oil, lube, gear…eventually one or more will blow up and you’ll be forced to make a pitstop and make adjustments, slowing you to a halt while your competitors speed away with earnings that could have potentially been yours. The last thing racers want is for their cars to stall because their car wasn’t prepared enough, and so right out of the gate, they’re falling behind. As an Amazon seller, you want to get off to a good start, otherwise, it can get frustrating and a bit messy, trying to correct what did not go right.
Until recently, sellers did not have many options when it came to understanding what are the best and most important factors in deciding which products to source and where. However, a new generation of product research and analysis tools (such as Algopix) can significantly make the process of sourcing easier, less stressful and time-consuming.
Important data that matters as you begin selling on Amazon
As a seller, there are two main metrics that should interest you: product insights, and expenses: You want to know what type of product is worthwhile for businesses to sell and where, at what price, how identical products are selling, at what price and profit (if any) in global Amazon, eBay and Walmart market places. You also want to know all your expenses and how they break down. The more data you have about the products you wish to sell and where, the more focused sellers can be on selling and save valuable time and money on dead-end marketplaces. Using a cutting-edge set of algorithms, Algopix can help sellers extract vital and relevant data for their Amazon business.
A tool that can definitely help sellers make better sourcing decisions is Algopix’s Sales Estimator, which provides insights on both the monthly sales volume (i.e., units sold) and the Gross Merchandise Volume (GMV) for any product on eBay, Amazon, or Walmart, broken down by marketplace. Using the Sales Estimator, sellers can discover what products are popular in international marketplaces, and reduce the risk associated with international expansion. Sellers can Increase the sales volume by analyzing competition and optimizing pricing strategy
Who are you competing against? What product they are selling, and at what price point? What is their rating? The grass may not always be greener, but it sure can help to know what they’re selling.
Algopix also provides the data that truly matters for online sellers including a detailed expenses breakdown, recommended selling price (not the lowest price or average price), competitive analysis and a smart ‘recommendation engine’ to help make quick buying decisions. Algopix is also the only solution that offers a truly in-depth analysis for multiple products at once via the Multiple Product Analysis features.
Additional vital data such as high-profit opportunity expected profit after all expenses are deducted, and a recommendation whether a product can be successful in a given market, are all accessible instantly via the Algopix user Dashboard.
Product Demand level
Knowing the demand level for your product in Amazon marketplaces can be an invaluable tool in determining where and when to market it. Such data in advance, retrieved from actual sales on several international Amazon marketplaces as well as from search engines, can help save you time, money and effort.
In the excitement of one’s decision to become a seller, sometimes a few things become lost…such as expenses, which include: buying costs, shipping, marketplace fees, taxes, etc. Knowing these in advance (as Algopix can provide, calculating it for you), is a big boon to sellers.
Every marketplace has its own tax or VAT setup. For example, in Europe, you have EU countries and non-EU countries, with different taxation methods, which can affect your bottom line. Knowing in advance how much you have to expend, before beginning to sell on a marketplace, can help you decide whether it is worthwhile for you, financially, to enter that market.
Trend Search results
When researching for a product to market, Google trends analysis provides you with additional valuable insight as to how the product is trending, and where.
Start off in a better position
‘Armed’ with all this data, sellers are equipped to source products better suited to them and the marketplace they wish to sell, reducing the valuable time required to invest in research, extracting this data, manually.
Sell products that you have an interest in
That’s why it’s not simply a luxury, but a necessity – to have a product research & analysis tools at your disposal that can extract these invaluable metrics, mentioned above. As an Amazon seller, it’s crucial for you to source the right product for you when you start out selling. What products do you have an affinity to? When you start selling on Amazon, you want to have everything in place: the right product to sell, the right measurements, the correct shipping methods, the right price, etc. Platforms like Algopix exist to make a seller’s life simpler.