Becoming an Amazon “Best Seller”
Being recognized as an Amazon seller is easy because that mostly involves filling out some online forms and clicking a few buttons. Maybe a little tedious, but those are just basic stuff to do. I mean, more than 2,000 new sellers join the Amazon FBA business daily, how much easier can it get?
Becoming an Amazon “Best Seller”, however, is a whole different ballgame. So much more effort and strategy go into identifying a profitable product, in a profitable category and then building a sustainable and successful business from it.
Success itself is such a nuanced term, especially when used with an Amazon FBA seller. Despite significant disruptions due to supply chain issues and the effects of the COVID-19 pandemic, 76% of Amazon sellers still managed to be profitable in 2022. Now, even a profit of $25 after selling 25 units of a product priced at $25 is still what it is – a profit. And such a seller will be counted among that 76%. For an ambitious Amazon FBA seller, that’s too crowded a statistic to be part of and be satisfied with. But that’s where the going gets tough because standing out from that crown is hard. Very hard – but superlatives just feel too good not to try.
The New Release, The Amazon’s Choice, The Best Seller – the sweet feeling that comes with knowing you’re the “best” at whatever you do must be ego-boosting. Only now, you don’t have to do much talking. The yellow-like icon on the top left of the product’s logo does all the magic. Buyers love it. They see it and they go: “hey look! This product has that badge of awesomeness, I’ll buy this instead.” Amazon rewards you for being a key cog of the machine which generates the company’s $470 billion revenue with even better rankings, and you get a slice of the pie commensurate with your “Best Seller” status. Success begets success on Amazon.
Now, let’s see how you get that much coveted “best” seller badge.
What is the Amazon Best Seller Badge?
Amazon's definition is very succinct, so let’s reproduce it here.
"Our most popular products based on sales. Updated hourly."
The only way to get an Amazon Best Seller badge is to sell the most products within your category in a particular marketplace over a period. Once a product qualifies to be a best-seller, Amazon gives it a yellow badge on the top left corner until the next hourly update. In general, there are 100 best sellers in any category. Certainly possible to knock out one off that list, no?
At least, our remit is clear: sell more products than everyone else. And we have a hundred attempts to do that.
All About the Product
The product you choose to sell is the centerpiece of your Amazon FBA business and all other things revolve around it. How to sell on Amazon doesn’t deviate from everything you learn from economic 101: a low-competition and high-demand item is the winning product. That may be a simple statement to make but implementation often requires the use of Amazon automation and research tools to get right.
There Has To Be (High) Demand for a Winning Product
Let me tell you an open secret: the best sellers on Amazon don’t sell a product because they like it, and the same goes for the niche as well. They sell whatever they sell because people are searching for it. Once the search volume for a product in a particular niche is high, you then have a fighting chance of breaking into that market.
A search volume of 5,000 is the minimum you should target before launching a new product. That gives you a good chance to generate sales and move up the ladder.
Minimal (Or No) Competition for a Winning Product
Okay, to be frank, you’d have to be a certified genius to come up with a product with not a single competition on a platform like Amazon. I mean, there’s actually a gift of NOTHING (empty) as a product people sell.
Therefore, you should set the bar slightly lower and aim for products that have low competition. Even if you think you have such a great product that news of it will spread across the platform, you should realize there are equally good products that have been on the market for longer than yours and are run by highly skilled sellers too.
High-demand niches dominated by products with less than 50 reviews boost your chances of generating more sales than those with hundreds and thousands of reviews.
Setting Smart Profit Margins...
When it comes to profit, the right numbers depend greatly on the cost of running your business operations and the market you focus on.
Where we want to specifically bring your attention to is the minimum profit margin to target. We have seen Amazon Fulfillment and referral fees hike by up to 12% just this year. For that reason, targeting a minimum profit margin of at least 15% to 20% will ensure you're able to keep your business afloat without having to make up the balance by charging more from your customers.
...and Sale Price Points
Amazon is a serious business that takes its toll on you financially. To really maximize your chances to make more sales, it’s hard to not carry out any sort of advertising campaigns, or do Amazon automation. This costs more to implement.
Hence, you need to target a profitable price point for your products. There’s a strong case for picking items you can sell above $25 to help you earn higher profits. However, higher-priced items (say $100) are harder to sell in large volumes, especially for a new seller.
Starting with products that sell a little lower is not a bad thing. In fact, most sellers on Amazon price their products between $11 and $25. What you need is a sale price point where customers buy your product in droves.
Other Tips to Set You on Your Way to Become an Amazon Best Seller
Automate your Amazon Business Processes: Your time and energy are mostly wasted on passive and repetitive tasks like order fulfillment to demand, monitoring inventory levels, and tracking sales. Automating those will free you up to focus on more crucial business strategies and directions you need to drive.
Provide a Unique Experience: Take advantage of the emotive part of your customers and offer transparent and personalized service. Establish a connection built on trust and value with your buyers and they will return to your store again.
Leverage the Power of Product Descriptions: Writing quality product descriptions is both an art and a science. Keep the description short and to the point. Focus on selling a product’s benefits and not its features. Keep the product title short, and use bullets point for product details.
And remember: choose your words intelligently. They have the power to move hearts and
Finding a profitable product is the biggest challenge for every new seller on the Amazon FBA program. That's why so many expensive FBA research tools are so popular and used by both new and established sellers. But then, you are already off to a great start because you know the characteristics of a winning product.
However, a winning product alone won’t get you the Amazon Best Seller Badge. You need to bring your dedication, commitment, and unbridled salesmanship to the fore to put yourself in that conversation.
If that brings you ever so close to the ultimate price, then and only then, you absolutely go for it and bring that yellow badge home.