shipping containers

What Are The Best Products to Sell on Amazon FBA?

There's been a long-standing feud between the two types of Amazon sellers. These two types of sellers have completely different philosophies and sometimes things can get ugly.

In this article I'm going to detail these two types of sellers, and at the end of it I will give my opinion as to which one is right. Which type of cellar are you?

Buy low, sell very high

The first type of seller is the one that buys very low priced items that have large margins. These are the garage sale folks, the thrift shop scavengers, and sometimes the online arbitrage guys.

Their goal in life as an Amazon seller is to find something as cheap as possible that can sell for a huge margin. They are totally fine with having to wait five months in order to make hundred dollars off of an item that they bought for $.50. To them, it's all about finding the best deal at the best price.

Low margin, fast return on investment

The other type of seller is the one that doesn't necessarily care too much about the margins being huge, but worries more about how fast their money is going to turn. This means that even though they might be spending $20 sourcing a product that's going to sell for $35, they know that they are going to make a few dollars almost as soon as it hits the Amazon fulfillment center.

Of course, the margins don't have to always be super low, but the main goal of this type of Amazon seller is to get their money back as quickly as possible so that they can reinvest it back into the business.

Which way is the right way?

I write, so I'm good to give you my quick opinion on which of these two sellers are more correct in their sourcing and selling.

Drumroll please…

Who has the correct sourcing method? The answer is, neither.

Yup, you heard me right, neither of them have the correct sourcing method.

Here's a question, what are the best products to sell on Amazon? The answer is everything and anything.

Your sourcing and your selling should be extremely diversified. To be stuck in one method is to put all of your eggs into one basket. You see the problem with trying to buy super low and sell super high is that you are going to eventually run out of capital to use. That's because all of your product is still at Amazon waiting to be sold. Sure it's nice having $10,000 worth of product at Amazon waiting to be sold, but if it's going to take 6 to 12 months to sell all of it how are you going to have enough capital to buy more product in the meantime?

Likewise, if you are always focusing on trying to get quick wins then you are going to miss out on some pretty lucrative slow turning items. While it's nice getting your cash back quickly sometimes it's also pretty awesome to get a large cash infusion when your $500 book sells.

My point is if you are currently doing only thrift stores, garage sales, and other slow turning sourcing methods – you need to start looking at something that's going to help with learning how to do fast turns.

Also, if you are only focusing on fast turning items you need to start allocating a part of your budget toward some of the slower moving but higher-margin items so that you aren't constantly having to work in order to get the cash return.

The key to any good business is diversification of assets. If you can start doing some private label, or get exclusive rights to another product that would be awesome to. You have to start getting in the mindset of mitigating risk through the diversification of your sourcing and your selling. Far too often I see individuals overextending themselves during the fourth quarter because they rely solely on one type of sourcing method.

Don't be that guy. Start diversifying everything that you do today.

Updated December 2015:  If you are into online arbitrage (buying from one site and selling it for a profit on Amazon) or even thinking about getting into private label, you may want to check out MooFlip.  they have vendors that do product research for you ahead of time so all you have to do is buy what they've already researched, buy the physical products, and then sell those products on amazon for a profit.  It's a great time saver.  You can check out MooFlip by clicking here.

About The Author

Dean Soto

Founder of the Online Empire Academy and creator of Wooshmetrics.com

0 Comments