Why can't I find anything profitable to sell on Amazon?

by 23 replies
30
I have been a merchant fulfilled seller on Amazon and seller on Ebay for the last 3 quarters, and have been selling different merchandise on and off.

I go to garage sales, thrift stores, library sales, online sourcing, and wholesale sourcing - but can't seem to find anything that is profitable.


I sometimes spend whole entire days scanning, and finding nothing. I have been to thrift stores, and most of the books are worth a penny and have really high sales ranks, with 570 different sellers competition. Only a few out of a hundred are worth a little more, and when I do find some books that are profitable, they usually only sell for 1 to 2 dollars profit.

All these retailers and sellers do is sell items exactly at a price where you can't make a profit .They are smart. They probably look up the price, and they know that people like Amazon sellers wanna make a profit, so they jack up the price to stop them from doing so.
#ecommerce sites, wholesaling & drop shipping #amazon #find #profitable #sell
  • Try finding items that don't have a million search results or sellers. Then you are buying from the wrong people or looking at the wrong items to buy. If you can't find an item you want to sell at a good price then forget that item. In reality people will buy anything and there are tons of products to make money on.
  • [DELETED]
  • A few things.

    Get into the higher dollar products.

    Look at less competitive niches where there is a demand

    Develop your own products
    • [1] reply
    • This is good advice - especially the "develop your own products" bit! Just remember to trademark a brand, though, otherwise Amazon sellers may "piggyback" on your company's product listings.

      Alternatively, look away from Amazon and start a standalone website where you can charge as much or as little as you like without having to worry about what other Amazon sellers are charging.
      • [1] reply
  • Bundling is also a way to get away from the crowd and get better prices. Bundling is putting compatible products together, say a shampoo and conditioner, multiple flavors of a food product, etc. But before you do that, make sure to read up on what Amazon allows.

    Also, just keep scanning and checking everything! It takes some time to get in the groove and start finding product.
  • I manufacture personalized gifts and wedding favors. I need someone to sell on ebay/amazon for me. Let me know if you are interested.
  • [DELETED]
  • This is why I went private label. I work with products that sell for $15-$30. My margins are usually around 50%, and I never have to fight for the buy box. I resell a few items here and there, but they are few and far between.
    • [1] reply
    • To start private labeling you have to find a product that you can buy direct from a manufacturer. Buying locally is sometimes an option but for major profit margins, you should look overseas.

      A margin of only 50% suggests that you are buying from a wholesaler, but you can bypass wholesalers and go direct to the manufacturer. That is where the big profit margins are.

      China is not the only country where you can find high profit margin products. Although most of my students do buy from China, I also encourage people to consider other countries. See the thread Importers should consider countries other than China
      • [1] reply
  • private labeling is really the best way to go. 6x-20x markup is easily achievable.
    • [1] reply
    • Those margins are available if you buy direct from manufacturers overseas.

      Private label is all the rage at present, but it's nothing new. As a manufacturer in the 1970s and 1980s I provided private label products to people who sold retail to consumers. I only ever sold B2B, so the consumer market was of no interest.

      All of my export products went out under my label, and I would not allow my agents in other countries to private label because I was building my reputation.

      For local business, my company would do a production run, and one product went out to quite a few customers all with their own labels. They were all competing against one another with the identical product. To avoid that you need to find unique products rather than follow the crowd looking for hot sellers. The easiest way I know to do that is to search for products in countries other than China.

      When I began importing in 1987, the bulk of my products were made specifically for my business and all carried my label. I built a huge business operating in 4 countries through franchisees, and I could not have done that if I had copied other people's hot selling ideas.
  • Listen to those who are saying private label is the way to go. Retail arbitage is a hobby IMO. You cannot scale that. Let's say you found a goldmine of products, what happens if you break your leg or suffer a setback? You would certainly lose money. The only way to scale this is to hire more people. Online arbitrage is a bit better but the margins would still make it hard to scale. Owning the buy box w/ PL, setting your price, and dealing with manufacturers would get you good margins. Reading Importexport's book on china sourcing and a PL course should help you. Honestly, there's enough info on youtube that covers the PL process where you may not need a course. It's all good though, I too have just started my PL journey but I stand by this method.
    • [ 1 ] Thanks
  • One simple suggestion is to find new products that you can source from ebay and sell via FBA on Amazon for a good profit. It can help you make some easy money. If you do this in addition to private labeling you should be doing OK.
    • [1] reply
    • Yes, you are right. I am completely in favor of you. Apart from this, you can also take an assist from eCommerce platform support service, where you can get the valuable information how you can get more profit by eCommerce business.
      • [1] reply
  • My first major success was private-labeling a product.

    The secret to doing this - before sourcing a product - is to do the niche research.

    Many times people research a product, specifically, which is great and all, but it doesn't give you the power to be MAJORLY successful.

    Case in point: I recently read an article about piano retailers. They are going out of business left and right. They cite: "Kids would rather do other activities - many electronic - other than take up piano.

    (In my opinion, it's not the kids choosing other activities, it's fewer parents FORCING their kids to learn the piano. When I took piano, that was exactly how it was. No one wants to practice when they're 3-27 years old.)

    There are sill a few piano retailers that are doing decent, though. They offer lessons AND sell other products. 100% of all kids today are wanting to take up guitar. So, they started selling guitars, amps, pedals, etc.

    If you sell pianos as a product, you'll eventually die out. It is more difficult than selling in the 'musical instrument' niche.

    Adapt, or die.
    • [ 1 ] Thanks
    • [1] reply
    • Thank you for sharing that. What you said is very powerful... your first MAJOR success.

      The more I play this retail game the more I realize it's the people higher up the supply chain making the money. A manufacturer told me If I made a $5,000 purchase I can get an extra dollar off the product price. LOL what!?! So they make a $2,500 dollar profit that I pay the shipping for and I get an extra %5 margin on my sales that aren't even guaranteed?

      The more I play the rat race the more I think of private labeling my own product.

      Okay- could I ask you a question, good Sir?

      What exactly does niche research as you define it entail?

      For example, are you looking at demand, highest markup potential, ease of advertisement, product SIZE to reduce shipping?

      And, should we truly be "passionate" about a product we choose, or can it be impersonal so long as it makes the most profit?

      Lastly, what are the most effective uses of time and minimal risk strategies for implementing one's own brand?

      Thank you
      • [1] reply
  • I would like to add- I only have so many hours in the day. I am spending most of it selling other people's products- making THEM successful, and have to pay the bills with what I have leftover.

    If you had a $5,000 credit line and 1 month to private label your own product before ending up on the streets homeless and starving, WHAT would you do?
    • [1] reply
    • Finding a product or niche is not a set formula. Usually if a product has low demand it will have lower competition and allow for a higher markup. If a product has high demand there will be more competition and usually push the price down. I have products in both these areas and have made both successful. For the size you just need to be aware of how this affects the landed cost of the product so you will still have a acceptable margin.

      I am not passionate about my products but I have developed a high degree of knowledge around them.

      Starting with something smaller that you can airship over be the least risk. If you have large products that need to be shipped via container you will run up say $3500 for shipping the container and trucking. Potentially more if there is customs exams ( more trucking fees ). Port delays like we have had on the west cost recently ( delayed my container an additional 3 weeks :S ). Then if you don't sell as fast the storage will be a lot more expensive at hundreds of dollars per month.

      Choosing something small that you can airship when starting out will have less risk.

      With a $5000 credit line that has to be paid in a month it is not going to happen. If you have custom packaging or anything that needs to be manufactured specifically for you its going to be 30-45 days to get the product made. Unless the product is already made and they just need to slap on a sticker I can't see it arriving any sooner then 2 weeks after paying. You probably won't sell everything in the remaining 2 weeks either......

      You really don't need $5000 to get into private labeling, it can be done for much less with the right products. You need to find something that fits your budget and can work into your time and eventually grow as you reinvest your profits into more product.
      • [ 1 ] Thanks
  • The 1 month is a time frame for research, design, and sourcing a manufacturer. The credit line is no interest for 15 months.
Join the discussion

Next Topics on Trending Feed