Is it profitable to open a store on Amazon? How to choose products?

As the Amazon platform continues to grow, more and more people are starting to open stores on Amazon. After opening a store on Amazon, all merchants have to do is operate and promote the store, just to make money. Is it profitable to open a store on Amazon now? Let's find out together.

Is it profitable to open a store on Amazon?

When opening an e-commerce store and doing business, it is taboo to be too "optimistic". The optimism here refers to the financial aspect. Many sellers pay attention to market trends and immediately invest a large amount of money in a business opportunity, but forget to evaluate the risks. Once most of their funds are invested in one SKU or a series of categories, there will be a lack of follow-up funds for other operations. If something unexpected happens, it is easy to "capsize".

On the contrary, if you split the available funds in your hands into multiple parts and use them reasonably, it is equivalent to using small amounts of funds for trial and error, which can accumulate experience and better understand the market rules. With past experience, the risk will be much lower when you expand the scale of investment step by step in the future.

How to choose products?

1. Don’t follow the trend when selecting products. Different fields and different groups of people have best-selling categories. Before you have sufficient control, you should start with the rigid needs of consumers and focus on a single or several categories. Blindly distributing multiple SKUs will often result in heavy losses.

2. Be clear about your available funds when selecting products. Once you blindly choose products with high prices and long sales cycles, it is easy to break the capital chain during the operation process or run out of stock in the store.

3. Refuse to speculate. Simply put, although some products are very popular, they may be suspected of infringement.

4. Be cautious when choosing popular products. The simplest example is the three hot products in the Guangdong market: mobile phone cases, data cables, and chargers. Although the sales volume is there, the competition is great. Every year, the sellers who lose money on these products are at least 500 if not 1,000. Find out your own strengths and weaknesses before making a decision.

5. Cyclical and seasonal products should be stocked in advance. Because these products are time-consuming, if you are slow to stock up and miss the golden period of sales, the goods are likely to pile up and become unsalable.

By understanding the above content, everyone should know whether opening a store on Amazon can make money. In fact, judging from the current situation, more and more merchants are opening stores on Amazon, so the competition is very fierce. Under such circumstances, it is not easy to make money.

Recommended reading:

What are the fees for Amazon Business Purchasing? Introduction to the basic costs of opening a store

How to open Amazon Business Purchasing? What is the activation process?

How to write the registration address for Amazon in the United States? Introduction to the registration process