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Identifying Good vs Bad Products on Amazon

When it comes to winning on Amazon, the golden ticket is discovering top-notch products that not only drive your business's growth but also fatten your wallet. Sounds simple, right? Let's dig into this and understand how to filter the good from the bad.
Quick Jump

Understanding what makes a product shine and steering clear of potential pitfalls can still be quite the puzzle. It’s essential for every aspiring Amazon seller to know of the clear red flags when looking at a listing and filter out the good from the bad.

So, let’s explore the key factors when evaluating a product…

  1. Return On Investment (ROI)
  2. Sales Per Month (SPM)
  3. Profit Per Unit (PPU)
  4. Competition
  5. Red Flags

Return On Investment (ROI) and Profit Per Unit (PPU)

Imagine it as the captain of your ship – it charts the course of your business growth. It’s all about how much cash you pocket in comparison to what you’ve shelled out, presented as a percentage. Here’s the magic number: 30%. Profit per unit follows this lead. Sure, high individual profit is a thumbs-up, but if those pricey items dent your ROI, it’s like chasing glittering gold while sailing towards an iceberg. Remember, Amazon’s a numbers game, not a few-item extravaganza

Sales Per Month (SPM) and Competition

Picture this as the engine propelling your business forward. Even if your products pack a punch in profits, if they sit untouched on the virtual shelf, it’s like watching paint dry, your money sits there stagnant – it’s not working for you like we want it! Aim for at least 50 monthly sales – that’s your benchmark. Competition tags along here, your listings might generate the correct sales volume, but if that’s all eaten up by competition, you’re left with a tiny slice of the pie – we need a healthy balance! Striking that sweet spot between strong monthly sales and healthy competition is going to become easier and easier as your journey unfolds. Remember, an overcrowded listing can deflate prices and race us all to the bottom; knowing when to jump in with the crowd is the key here./

Red Flags

Red flags – these really are your ‘make or break’! Ever heard of “private label” or “trademark/IP issues”? These are the product landmines we dodge at all costs. They often look tempting, however, no matter how great they might seem, they won’t do you any favours! Spotting these listings is a skill in itself and might take some practice, however nailing that skill can keep your Amazon business charted on the right course. Making too many mistakes here can lead to your Amazon account being deactivated and, for an Amazon seller, that’s the one thing we want to avoid!

So there you have it – your treasure map for navigating Amazon. Find the balance, heed the signals, and let the journey begin!