Amazon is the world’s largest online retailer with product sales worth $108.35 billion in 2017. Over 50% of total sales on Amazon is done by third-party sellers on Amazon’s marketplaces that are live on all of their websites. Doing business on Amazon is profitable for sellers, which is underlined by 140,000 Amazon sellers with a revenue above $100,000/year in 2017.
In November 2000, Amazon US was the first marketplace to be introduced to Amazon, allowing customers to buy items offered by third-party sellers alongside Amazon’s offerings. Today, millions of sellers with product listings on the platform. Amazon US had 368 Million products on December 1, 2016.
Sell on Amazon US
With a continuous influx of new sellers, it is getting more difficult to find products with few competitors. Algopix’s Amazon US product research tool offers you insights into your competition level for products, so you can find the right product for your business. Algopix provides valuable insights that helps you effectively position your business on Amazon to stand out from competitors, pricing your products correctly, and ultimately winning the Buy Box Offering.
Strict performance targets like a late shipping rate below 4% makes using Fulfillment by Amazon (FBA) inevitable
FBA allows you to offload your warehouse operations to Amazon in exchange for certain fees. Almost 70% of Amazon’s top sellers are using FBA, which makes it an important competitive must-have. The fees not only shrink your margins, but are difficult to calculate when offering different products with different size measures. Algopix’s Amazon US marketplace research provides you detailed information about any costs related to a product, be it marketplace fees, shipping fees, or FBA fees.
Around 33% of all Amazon top sellers are based in China. For Amazon US, this share is expected to be even higher
Chinese manufacturers used to be merchants’ best friends for providing products in demand for a reasonable price. However, in the past years, more and more manufacturers started selling directly to consumers in the US. Because they cut out the middleman, i.e. the retailer, they can offer the products for much lower prices than other competitors. This leads to lower profit margins for sellers, making the sustainment of a profitable business more difficult than it is now. Algopix Amazon US seller tool calculates the expected profit for you based on the purchasing price you provided and the full expenses related to selling your product. This helps you find products with a big enough profit margin. Furthermore, Algopix’s Amazon US product research offers insights into a product’s sales volume and gross merchandise volume for the past month,giving you an estimate of how often the product will sell. This information helps you make an educated product sourcing decision where you only take in the most promising products.
Using Algopix Amazon US seller tool
Amazon’s introduction of FBA in September 2006 allowed sellers from all over the world to expand to new markets without needing their own warehouse. In the following years, more and more sellers discovered the US marketplace as a profitable option to sell their products. Assessing the potential of different markets is even more important in a globalized world, like the one we’re living in. Algopix greatly facilitates assessing new markets by offering insights into seven different marketplaces across the world. You can determine the product demand level, expenses for selling in this country, estimated profit, a product’s sales volume and gross merchandise volume (GMV) for the past month, and competition level before committing to a new market.
There are hundreds of products that sellers have to go through to find one or two that are worth selling
Amazon sellers on average have close to 200 products listed, which shows that having a few products for sale won’t make it a profitable business. As a seller,you get price lists from manufacturers containing hundreds of products you have to assess. Researching one product at a time is a waste of time and resources, which is why Algopix’s Amazon US market research supports bulk analysis of up to 200 products at a time. This allows you to speed up your sourcing efforts.