Friday, March 27, 2020

How to find a potentially popular Chinese product to sell on Amazon

In 2020, according to Jungle Scout’s data, Amazon.com has over 166 million products listed across 20 categories. Most of these products are ranked using “Best Sellers Rank (BSR)”, which can help 3rd party Amazon sales to find potential popular and profitable products from China to sell abroad on Amazon. 

So what is Amazon Best Sellers Rank? 

An Amazon Best Sellers Rank (BSR) is a number that nearly every product in its multi-million product catalog is awarded once the item has had at least one sale. For that reason, the BSR is a good indicator of how well a product is currently selling on Amazon. 

As per the article "Amazon Best Sellers Rank: Everything You Need to Know to Succeed in 2020", the lower the product's BSR, the better its sales. However, the BSR only applies to how a product sells in a particular category. In other words, products don’t have an overall BSR, comparing their sales to every other product on Amazon. But, since many products sell in multiple categories on Amazon, it is possible for an item to have more than one BSR. Particularly when you take into account that nearly every department and sub-category on Amazon has its own individual best sellers ranking system.

How is Amazon's BSR calculated? 

Below are a couple of factors speculated, given that Amazon does not reveal exactly how the BSR is calculated. 

- Current and historic sales
- Product price changes and promotions
- Competitive products 

Where to find the Amazon BSR for a product? 

Find the product and scroll down to the product details portion of the page. See the screen below:
You can go the the best selling products page and then click on a particular department to find top products on Amazon. 

How do you determine what sort of products to sell on Amazon using BSR? 

  1. Check the product’s Best Sellers Rank on Amazon using the methods described above.
  2. Estimate the average monthly sales for the product on Amazon to get an idea of how often the product sells. You can use the Sales Estimator.
  3. Calculate the cost to sell the item. This includes the cost of the product itself, any relevant fees, the cost to store the product if it takes a while to sell.

Here is the opportunity to find a similar product in China with lower costs! 

Amazon offers the sellers with substantial help through its BSR page as described above. This page shows the products based on their categories & sub-categories. After having a quick search at the listing products, the sellers can determine what items are sold the most. In addition, the BSR page offers what the competitors is doing regarding the key issues such as low seasonality, legal problems, price range, lightweight, and improvement room. After reviewing the key issues, the sellers can get a good sense about what products are selling the most and what the customer comments and ratings are. The seller can then do a keyword search on different apps such as Pinterest, Shopify stores, e-bay, and AliExpress’s weekly best-sellers list.

Once the sellers determined which products are likely to make profit. Based on selection of products, thousands of qualified manufacturers can be found on Chinese website, Alibaba or TMALL.

How to find Chinese Manufacturers

Everyday, Chinese companies received huge amount of email and messages asking for samples. So, the seller first needs to test how fast the Chinese company will respond to the sample request message. Why it is important? After the seller on amazon ordered the products, any delay in shipment or production results in the deliver schedule change. The customers on amazon will not get the items they ordered on time, which could easily ruin the product. 

In the first email, the seller needs to tell the Chinese company the purpose of the first order purpose is to test the quality and asks for a price quote, number of units to be ordered and a delivery procedure, in order to demonstrate the sellers' seriousness. 

After receiving the price quotes from different Chinese manufacturers, it is time to pick one or two manufactures with good price. And then, the seller can send first order message to China. The message should include the instruction where the deliver location is, what is the deliver day,  and how the money will be paid.

When the first order arrives at the warehouse or the seller's home, the seller has to inspect all unit for quality level and defects. After reviewing the quality level, deliver time, and how quick respond, the seller can make decision whether to continue purchasing units from this Chinese supplier.




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