In this edition of the series on “What to Sell on Amazon”, here are few Amazon FBA product ideas that we would be covering in this blog post. We would summarize the verdict first and then follow with detailed explanation

  • Magnetic photo frame – Not Recommended
  • Wine Gift Bags – Not Recommended
  • Beach towel wrap kids – Recommended
  • Plastic dessert plates – Not Recommended
  • Dining chair pad cushion – Great Business to be in ; Highly Recommended

Let’s take a deep dive on all the above products now.

Please use the following links to download and review profitable keywords.Please not along with this blog,we compile list of keywords and products ideas and publish it to our readers.

Amazon FBA Keyword ideas 08/06/2019

List of Best selling Product Ideas

Magnetic photo frame

Magnetic photo frame is an amazing way to capture memories. The product is being used by people of all sorts of demographics.

Quick spy search shows average sales of 6085 units which is reflection of high demand of the product and average price of $17.22. Following is the summary of search results:

 

We looked at different search line items – prices vary as the quantity is different in each of these. Hence, we picked one of these to delve deep:

 

 

The price of set of 25pack of magnetic photo frame is approx. $18.99. The size of frame is 4 X 6 inches. . Hence the price of 1 magnetic photo frame (4 X 6 inch) is $0.76.
It would be worthwhile to see actual realization price for the product. Hence, I summarized the pricing part below:

Product Magnetic Photo Pocket Picture Frame (pack of 25)
Price $18.99
FBA Fulfilment fee $5.15
Referral Fee (15%) $2.85
Price Realization $10.99

How much does it cost from manufacturers?
We looked at alibaba.com to identify results of similar product. The price ranges from $0.61 to $0.66 subject to minimum order quantity of 100 pieces, which is equivalent to 4 sets of 25 packs pf magnetic photo pocket picture frame.

How much profit can it make?

Base Case
Sales Price for 25 packs $18.99
– FBA fulfillment fee $5.15
– Referral Fee (15%) $2.85
Net Realization price for 25 packs $10.99
Net Realization price for 1 pack $0.44
Cost for 1 set(min) $0.61
Net profit Margin for 1 set -$0.17
Net profit Margin for 25 packs -$4.25
Net profit Margin (%) -$22.4

 

Verdict: Despite good demand, the product doesn’t lead to profitable business owing to higher cost of the product. So this is not recommended.

Wine Gift Bags

Next in line is gift bags for wine for special occasions. These paper bags are often laminated inside making them extra durable with an elegant finish and it comes with a strong ribbon handle.
Quick Spy search of wine gift bags tells that there is an average sale of 3850 which can be considered as reflection of moderate demand.

Average price is ~$12.25 and following is the list of major search results.

 

The prices of above item vary a bit and that’s primarily because of different pack size and material of construction. Hence, we looked at the specific result and initiated the research. I have selected 6th option as this is close to average sales price. You can look at the product and price below for this item:

Product Wine Bag (10 pack)
Price $11.99 Price for selected items are considered;
FBA Fulfilment fee $5.27 FBA fulfilment fee has been considered for the selected item
Referral Fee (15%) $1.80 15% of price has been attributed to referral fee as per FBA Calculator
Price Realization $4.92

 

FBA fulfilment and Referral fee is approx. ~59% of the sales price. Let’s dig deeper into cost if there is possibility to make profile by selling this product. We looked at Alibaba.com to understand wholesale cost of bow tie set for boys and we got following comparable items

 

 

As the prices of 10 pack of wine gift bags after deducting FBA fulfilment fee and referral fee i.e. $4.92. It would be $0.492 per pack. This is still higher than maximum price listed which is $0.30. Even at this cost, we could be able to make $1.92 for pack of 10 wine gift bags. This is 16% of sales price. The margins may be even higher if we could get lower cost of product by ordering more.

Verdict: Considering moderate demand and limited potential to make margin, this seems to be okay –okay product. This is a profitable business but not highly recommended.

3.Beach towel wrap for kids

The summer is here and who doesn’t want to spend his day on the beach with kids who can be quite energetic. We are discussing quick dry travel beach towel. Sand doesn’t stick to it and large size of beach towel could cover entire body easily.

What I could infer from this are as follow:

  • Average sales of 5394 units is resemblance of good selling product
  • Average Price of $20.14: For such 100% Cotton, high latitudes original ecology long-staple cotton, soft and comfortable, superabsorbent towel which are generally around 76*127cm and are being used by children, the price ranges here from $13.89 to $23.95. So let’s go with the average of all these sales – $20.14 which looks roughly in center of distribution of prices through all means.
  • FBA fees are ~ $7.45. For a product priced at $19.99, which is closer to average price, the FBA fulfillment fee of $7.45 is pretty much on a higher side. This is approx. 37% of average product price. Isn’t that too high?
  • Referral fee of $3.02, which is 15% of the product price will also be part of structure which will be taken away from seller’s topline. Total FBA + Referral fees is then whopping $10.47.

Okay, that’s sound like an Amazon’s favorite product where they take FBA fees and Referral fee making approx. 52% of product price. Doesn’t sound like a profitable product but let’s look at the cost side to see if we can really make anything.

Let’s see how much it cost to manufacturers.
We looked at Alibaba.com to look at the price of 100% polyester travel/sports towel microfiber, cotton printed beach towel with size of 70 X 140 cm to 75 X 150 cm. We had a couple of options but after looking at different specification, the closest one looks to be approx. ~$2.

Sales Price for 1 piece $20.14
– FBA fulfillment fee $7.45
– Referral Fee (15%) $3.02
Net Realization price $9.67
Unit Cost for 1 piece $2
Other associated cost (10%) -$0.2
Net profit Margin for 1 piece -$7.47

If we sell this product at $20.14, we are expected to get a profit of ~37% which is great. This product is low cost item when it comes to manufacturing. And if we could sell 1000 sets per year we would get profit of $7470 per annum from this and who knows we can see more in a year as I am taking a pretty conservative estimate as this product sells well all around.

 

Verdict: Nice business to be in as it has good profit margin; it would generate good profit in lesser time as this need only limited time & money in advertising.

Plastic dessert plates

Plastic dessert plates are used in houses for serving dessert during all the party places and this really adds flavor to the party be it birthday, wedding anniversary, marriage ceremony, school party etc.

Now let’s look at some number to see how this fare from business perspective. Quick spy search gives us the below result:

 

1. Average sales of product is 5325 and average price is approx. $24.86. Average sales value shows that there is a decent demand.

2. All the options have approx. 100 pieces and Average FBA fulfillment fee of $6.43 (this is calculated basis on the average of FBA fees of top 3 items). This means Amazon takes 25.8% as FBA fees

3. In additional referral fee would be 15% of the product price that would be additional $3.73. Hence FBA fulfillment fee and referral fee together takes away ~40.8% of the price of the product.

We looked at Alibaba.com to look at the price of plastic dessert plate:

Well the wholesale cost ranges from US$ 0.14 to US$ 0.17 depending upon the size of order quantity. Let’s take the most conservative estimate of 0.17 per piece. Even for this price, we would need to order minimum 1000 pieces.

Sales Price for 1 pack (100 piece) $24.86
– FBA fulfillment fee $6.43
– Referral Fee (15%) $3.73
Net Realization price for 1 pack $14.73
Net Realization price for 1 piece $0.1473
Cost for 1 piece -$0.17
Net profit Margin for 1 piece -$0.0277

OMG!! We would be incurring loss of USD 2.27 per pack of 100 piece. This business would be profitable only if we secure cost of $0.14 per piece, which is possible if the minimum order quantity of 4000 pieces, that is, 4 packs of 100 pieces.

 

Verdict: Not recommended both profitability and demand point of view

Dining chair pad cushion

Wooden chairs have hard seats that are comfortable for a short period of time. If you want to make your dining experience more comfortable, then you should think about investing into this chair pad. Adding cushioned comfort to your existing chairs is quick and easy with this memory foam chair pads from Ellington Home.
Quick spy search of dining chair pad cushion shows an average sale of 6035 units and average price of $39.55. The sales quantity depicts high demand of the product.

 

In the above search results, we have second options showing price of close to average price considered. FBA fulfilment fee of this option is $12. 54. And one pack has four quantity. We will take this as reference for FBA fees.

How much does it cost from manufacturers?

Looking at alibaba.com to identify results of similar product.

Wow this is same product and is sold in set of 2 pieces. Cost ranges from US$3.84 to US$4.00 subject to different order quantity. This is equivalent to range of $1.92 to $2.00 per piece. Let’s consider both to find out the profitability of the product.

How much profit does it make?

Best Worst
Sales Price for 4 Piece $39.55 $39.55
– FBA fulfillment fee $12.54 $12.54
– Referral Fee (15%) $5.98 $5.98
Net Realization price for 4 pieces $21.03 $21.03
Net Realization price for 1 piece $0.25 $0.25
Cost for 1 piece $5.26 $5.26
Cost for 1 piece $1.92 $2.00
Net profit Margin for 1 piece $3.34 $3.26

That’s great margin. The margin ranges from $3.26 to $3.34 per piece. This is equivalent to $13.04 to $13.36 for pack of 4 piece. The average margin would translate to ~32-33% of sales price.

 

Verdict: That’s great business to be in owing to higher margin and high demand of the product.

Conclusion

It is all about how you optimize your listing so that the customers know what they are buying. You certainly need to work on your product reviews as well to reduce your return rates. When you have mentioned everything about your product, the chances that the customer claiming ‘it is not what I ordered’ will ultimately reduce.

Use ProductSpyPro to find killer products to sell in amazon. We save time and deliver product research reports to your inbox so that you can spend time in improving your business and less time in spending time in using variety of tools available in the internet.

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