Is Amazon FBA Too Competitive For New Sellers?

Matt Clark

If you’re a new seller, you’re probably wondering if it’s too late to make money with the Amazon FBA program. The answer is no, it’s not too late. And yes, you can make money (and lots of it) — as long as you put in the hours up front.

By investing in quality research and a quality product, you have the power to make Amazon less competitive for yourself. So here are the top five ways to make Amazon FBA a less competitive environment as a new seller.

Go for products with high demand and low competition
Stay away from fads
Don’t avoid the details
Embrace valuable Amazon tools
Tap into your network

#1: Go for products with high demand and low competition

When new sellers first start out, the hardest part is choosing a product. There are so many options and it’s tough to research products that are both high in demand and low in competition.

>>	High Demand	Low Demand
High Competition	This is hard to pull off	Waste of money
Low Competition	Sweet spot!	Waste of time

As you can see, you have to find a product that strikes a balance between two things:

People want to buy it
Not a lot of people sell it

If you can find a product that checks both boxes, you’ve hit the jackpot.

#2: Stay away from fads

This might seem counterintuitive based on the first tip, but it rings true time and time again. Things like fidget spinners and Beanie Babies® are flashes in the pan.

Fad products are great for quick short-term growth, but they don’t have any longevity. And if your goal is to start a business that doubles as an asset and earns passive income … then this isn’t the way to get it.

Instead, choose a product with staying power — and one that you can build a brand around (i.e. private label or white label). This way you’re not stuck with a ton of inventory you can’t move when the fad finally fizzles out. Our advice is to stick to product categories that already have traction on Amazon.

Then build a solid brand, and create your own amazing success story.

#3: Don’t avoid the details

For this third tip, there are three things to remember:

Product listings

Write compelling, descriptive text that outlines the features and benefits of your product
Include information a buyer would want to know before making a purchase
Don’t forget to write a compelling product title

Keywords

Use an Amazon keyword research tool
Identify long-tail keywords (i.e. “blue expandable garden hose” instead of “garden hose”)
Pepper your product listings with keywords but avoid overuse or “keyword stuffing”

Photos

Take well-lit, high-quality photographs of your product
Include details like dimensions if appropriate
Post as many photos as Amazon allows

If you nail these, you have an automatic advantage over your competition. Many Amazon sellers don’t take the time to create strong product listings. So with a little research and elbow grease, you can get your product ranking higher than theirs.

#4: Embrace valuable Amazon tools

A lot of new sellers avoid investing in Amazon tools because they feel it’s a waste of money. But we promise you, no matter which one you subscribe to, it’s worth it (but we recommend Zoof if you aren’t sure which tool to choose).

Seller tools give you access to data and insights you simply can’t get from browsing Amazon. For example, if you register with Zoof, you get tons of tools like:

Keyword research
Product research
Product listing optimization
Competitor analysis and monitoring
Reverse ASIN lookup
Rank tracking
Product alerts
And more

There’s no way you could accomplish this all by hand. And even if you could, you’d spend 24 hours a day trying to get it all done. So spend the few extra bucks a month — you’ll be thankful you did (and your Amazon competition won’t be).

Try Zoof for free with a 14-day trial.

#5: Tap into your network

This one seems like common sense, but it’s worth talking about:

When you are a new seller,

ask your friends and family members for Amazon reviews.

This can’t be stressed enough. Amazon reviews are worth their weight in gold. And it’s how you stand out from the competition. It makes perfect sense when you put yourself in your customer’s shoes.

If you have the choice between three very similar products at identical price points, which one do you buy? Like most buyers, you probably choose the one with the highest rating, and highest number of customer reviews.

So tap into your personal and professional network, and ask them to purchase your product and leave a stellar review. It’ll boost your chances of beating out the competition on Amazon.

Discover how to beat out the Amazon competition

Amazon is an intimidating place for new FBA sellers, but it doesn’t have to be. Here’s a quick recap of everything you learned in this guide to make it less competitive:

Research products with high demand and low competition
Stay away from fad products. Invest in long-term opportunities instead
Invest in your product listings, keyword research, and product photos
Spend the extra few bucks on Amazon research tools
Tap your friends and family to make those first few sales and ask them to leave reviews

It’s never too late to start your own FBA business. And all you need is some hard work in the beginning to launch an Amazon brand that sets you up for life. So be sure to check out our blog to learn more about building a successful business, earning passive income, and setting yourself financially free forever.