Amazon trends for Q1-Q2 of 2022. Prepared Remarks:

Amazon trends for Q1-Q2 of 2022. Prepared Remarks:

Operator

Good day, everyone, and welcome to the Amazon.com Q2 2022 financial results teleconference. Today's call is being recorded. For opening remarks, I will be turning the call over to the director of investor relations, Dave Fildes. Please go ahead.

Dave Fildes -- Director, Investor Relations

Hello, and welcome to our Q2 2022 financial results conference call. Joining us today to answer your questions is Brian Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2021.

Our comments and responses to your questions reflect management's views as of today, July 28, 2022, only and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings. During this call, we may discuss certain non-GAAP financial measures.

In our press release, slides accompanying this webcast, and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our results are inherently unpredictable and may be materially affected by many factors, including uncertainty regarding the impacts of the COVID-19 pandemic, fluctuations in foreign exchange rates, changes in global economic conditions and customer demand and spending, inflation, regional labor market, and global supply chain constraints, world events, the rate of growth of the Internet, online commerce and cloud services, and the various factors detailed in our filings with the SEC. This guidance also reflects our estimates to date regarding the impact of the COVID-19 pandemic on our operations, including those discussed in our filings with the SEC.

What should i sell on Amazon. What to sell on Amazon: criteria

When you’re about to choose products you want to sell on Amazon:

#1. Look at the top selling products for each category and find trending products.

#2 . Go for items with high demand (or some demand): an item doesn’t have to be selling massive amounts per day. However, at a minimum, any product you plan to sell should achieve at least 10 sales per day.

#3. Avoid being too trendy or seasonal so you have consistent sales throughout the entire year. Selling products in demand 24/7/365 will help you achieve sustainable growth.

#4. Avoid picking heavily-saturated markets, consider international markets .

#5. Find a niche with consistent demand: in general, buyers often don’t just ‘browse’ on Amazon, but look for something specific, e.g. “Cookbooks for instant pot cooking” is more specific than “Cookbooks”. You can use a chrome extension to research products in a niche market, e.g. Jungle Scout to see monthly sales volumes on products or products with low competition.

#6. Consider products with low competition that could indicate an untapped market (selling products with big-name brands can mean too much competition). There might be high demand for a product, but not many sellers are offering it. Why not swoop in and offer a really good version of that item?

#7. Leverage existing product reviews, e.g. the number of reviews could indicate how often a product has been purchased or how long a product / listing has been up. A small number of reviews that are in the 4-5 star range could mean that that product is emerging as a top seller (there’s potential and likely little competition).

#8 . Consider products that are inexpensive to acquire/make.

#9. Test product quality before you invest. Check samples from your suppliers. This is extra important on Amazon FBA.

#10. Pick products that are easy to ship: be careful about items that are fragile, breakable, perishable or prone to damage.

#11. Learn about shipping costs and Amazon seller fees so you can narrow your decision, e.g. a two-pound item will be lightweight and easy to ship, which can help lower your shipping fees.

#12. Consider creating your own brand. Private label products can be less expensive to purchase compared to big names so you can make more profit on them. You also have control over how you market and present the product (however, you still need to design your own logo, packaging and build a customer base).

Amazon Product ideas 2022. How to Find Profitable Products to Sell on Amazon?

As you know, there are more than 350 million products on the Amazon marketplace. About 50% of the eCommerce worldwide market belongs to Amazon. But, finding products among all of these that could be sold quickly is challenging. Although Amazon is accessible, it is crucial to have a suitable strategy to successfully sell on Amazon FBA Business .

When you are looking for lucrative products, you need to consider the below points:

1) Use Searching Tools

One of the best ways to find profitable products is using search tools or software. Choosing the right tool to help you find online arbitrage deals is critical. The available tools for Amazon product research are:

• Helium 10

This tool is the right one if you want to grow your Amazon FBA business. You can optimize your online arbitrage sourcing list. Besides, it can identify trends, find high-ranking keywords, spy on competitors.

• AMZScout

It is possible to use it through the Chrome Extension or a web app; it just looks like Jungle Scout. It contains profit, BSR, monthly sales, potential product score, current inventory levels. In addition, you can analyze the competitors at multiple levels.

• SellerApp

Here, the data is provided to you from reliable sources. You can use instant insights, intuitive features, more clever shortcuts.

• IO Scout

You can do product research with this tool. This Chrome Extension gives you different statistics such as estimated sales, seller details, fees, etc.

• Keepa

It is an elegant and modern Amazon price tracker. It alerts you as the price drops. You also have access to comprehensive price history graphs and provide you with a massive update for the product database.

• AMZBase

To find products for selling on Amazon, you can use this free tool. The quickest way to reach the title description and ASIN of listings on Amazon is using AMZBase. Also, it helps you to calculate your potential profits and FBA fees.

• CamelCamelCamel

To get Amazon product ideas , CamelCamelCamel is the best price tracker. You can track the prices of your desired products without having an account, but if you wish, the tool alerts you, you need one. Additionally, you can have a Wishlist for selected items and check their price history.

2) Choose Low Competition Products

It is essential to find the products that not many people sell them. Because you want to get to the top of the rankings, choosing low competition products makes it more accessible.

3) Select High Demand Products

The number of sales of each product depends on the product category and its consumption. For example, the number of phone purchases is very different from the number of foods and groceries. However, if a product has at least 300 monthly sales, it is a good option. It means that it has ten sales per day.

4) The Product Weight Should be Below 5 lbs

You should pay more for storage and shipment of the heavy products. Shipping products from a far distance, especially from China, has more concern. Your profit margins will increase by reducing this cost.

5) The Product Size Should be Below 18” x 14” x 8

The cost of Amazon FBA service for large size items is really high. Don’t forget to consider the product’s size, and choose small ones.

6) Everyday Use Items Are the Best Option!

You will sell well if you opt for products with daily tend.

One of the ways to find the product with the above specifications and high profit is using the trends that we will discuss in the following.

Best food items to sell on Amazon. What Products Sell the Best on Amazon?

Amazon is a price-driven marketplace, meaning that people visit the Amazon site to find cheap prices on the products they want and need. So, if your price or price range isn’t the best one out of a group of the same products, you won’t be getting the sale and you’ll be stuck with inventory.

Certain items will sell better on your site while others will get the most sales by using the Amazon online marketplace. So, what products are the best items to sell on Amazon? There are two types of products that are best sold on Amazon:

#1 When Brand Differentiation Doesn’t Matter and You Have the Lowest Price

If you have brand generic products that you can offer at the lowest price, you should sell these items on Amazon. It’s not a product brand name that attracts the sale, it’s the price tag. With this type of product listing you’ll be going head-to-head with other sellers and the lowest price usually wins.

This is the main theme of Amazon. If customers want an original brand name purse, they’ll shop on that seller’s website to get it. On the flip side, if they’re shopping for a basic brown crossbody purse where brand name doesn’t matter and price does, Amazon is where they’ll go. If you offer a brandless purse, your best bet is Amazon.

#2 When You Have a Validated Differentiated Product Idea

If your product idea is unique, you’ll see Amazon product sales take off. This happens when sellers see a market need and create a feature that no one else has, or is marketing the product strongly . With the right Amazon promotional strategy, you’ll be able to get traction with an original product idea.

If the products you choose to sell on Amazon fall within one of the two categories listed above, you have a product area that has a good chance of being successful through this online marketplace. And, if your products sell, you’ll make money and empty your inventory, which are pretty good goals to achieve with any business, especially an online business.

Best replenishable items to sell. How To Find Your Next Best Selling Product On Amazon With A Real World Example

When I first started selling on Amazon, I placed a huge emphasis on replenishable products. That strategy has proven well as there are no clearance items in inventory as that requires too much time and energy. My first thought in the beginning was to purchase products that are consumable to be a replenishable. Don’t fall into that trap. Selling on Amazon has a reach to customers that few can match.

The mindset to you need to take is that a replenishable SKU is Amazon’s best seller’s rank. Below will be a quick and dirty guide with a real example that you can use every year of how you can find a SKU that you can restock and know that it will sell successfully.

Finding The Product

It’s very simple 2 step process that you will see below.

Look at the number of reviews and buy box. There’s over 100 reviews so we know the product sells which establishes the rank and will not wildly fluctuate:

So we see the rank is 2,709 which is very good. The closer it is to 1 the better the rank is. With 120 reviews, we know that rank is pretty stable. What makes this product not as great is the number of sellers at 39. In addition, the going price for the buy boxes as of writing is terrible at $9.06.

Wrapping Up

The return on investment is estimated to be 9.5%. For my own standards it is far too low and I would not invest in the girl scout cookie thin mints. There are many people that do not mind a 10% ROI, but that’s not my cup of tea. The prices are expected to bounce back up with a rank like that, but given the sheer number of sellers and checking the inventories of all the stores in front, it would take a while before the price would recover.

Take this template and find your self a good ranked, moving product and before you know it, you’ll have yourself a replenishable SKU.

Rare items to sell on Amazon. Where to find used products to sell on Amazon

If you’ve been following Jungle Scout for a while, you know we often refer to selling books on Amazon as one of the best ways to get started in ecommerce with little to no money.

In 2022, books still comprise one of the most popular categories on Amazon . Selling used books is easy — many people have them lying around their homes, collecting dust.

Interested in learning more about how to sell used books on Amazon? Check out our YouTube video on how to do it!

Check Thrift Stores and Garage Sales

You can also find an abundance of used books for very cheap — as low as $0.25 apiece — at thrift stores, book sales, library sales, and estate sales. You’d be surprised at how much some used books are worth. A book that you purchase for cents on the dollar can sell for $25, $50, even upwards of $100 on Amazon.

Other used items to look out for when you’re thrift shopping include consumer electronics like VCRs, DVD players, and corded phones. Many consumers love these old machines and are still willing to pay for them.

Just make sure the items you purchase are in good, working condition. Thrift stores often sell items that wouldn’t be acceptable to sell as used on Amazon. If the item is missing parts or doesn’t work correctly, do not list it on Amazon.

Follow our detailed retail arbitrage guide and our How to Sell on eBay guide to learn more about valuing items you find at retail stores to resell on Amazon.

Best items to sell on Amazon fba for beginners. Profitability

For every product you’re evaluating, think: can I source and ship this to Amazon for substantially less than it’s selling for?

Generally, you can consider the “rule of 3’s” to estimate this. Each product’s sale is broken up into ⅓ for fees, ⅓ in landed costs, and ⅓ for you. (So, if the product sells for $15, you should expect to profit $5.)

Costs

Landed costs

The collective costs to produce and transport your product to Amazon’s warehouses:

Cost of inventory
Any preparation or inspection fees
Shipping
Duties

Amazon’s fees

Referral fee: Essentially Amazon’s “commission” for each item you sell on the platform, this is typically a flat 15% which you pay when a product sells

Selling plan fee: For professional Amazon sellers, a monthly fee of $39.99; for individual Amazon sellers (those who typically sell fewer than 40 units per month), a $0.99 per sales transaction (but no monthly fee)

Fulfillment fee: For FBA sellers, this per-product fee covers Amazon’s cost for packaging and shipping products, and it varies based on weight and dimensions of your product and which marketplace you’re selling in
Storage fees: FBA sellers pay either a monthly storage fee or long-term storage fees

Revenue

Of course, your take of any sale will depend on how much you can buy the product for, and what fees come out along the way.As a general rule, you want the product to sell for $20-$70 to allow for healthy profit margins. Below $20, profit margins are minimal and possibly not worth your effort. Above $70, some customers are often unwilling to spend higher amounts on a brand they don’t recognize.Simply calculate your profits by subtracting fees and costs from your potential revenue.

Jungle Scout Tip

We recommend using Extension to find out exactly what your profits and Amazon fees are for a certain product. Simply use the Extension on a product listing that is similar in weight and dimensions and click on “Net Price.” From there, you can enter your selling price and your product cost, and Extension will break down all selling fees and show you your profit.