By Si Martin
Size matters! Why you’ll only see small products in ProfitSourcery
When you’re getting started selling on Amazon, one of the first questions you’re going to ask is: “what products should I be selling?” Well, good news! ProfitSourcery answers your question by showing you a daily list of products that can sell well on Amazon, and for a decent profit margin. If you haven’t got started yet, you can try it for free for 7 days to get used to it.
Even if you’re not a ProfitSourcery user, if you’re selling on Amazon, it’s worth considering the size of the products you’re selling.
Once you sign-up and login, you’ll see your dashboard of daily product opportunities. Each product you see is currently selling well on Amazon, in terms of markup and Sales Rank.
But you’ll notice one thing – all of the products in the dashboard are relatively small.
Don’t worry, it’s not an oversight, we’ve done some research and figured out that smaller products are just a smarter option, whether you’re getting started or you’re already selling on Amazon.
Here’s what we’ve set as our parameters in product selection:
- Maximum weight: 7500 grams
- Maximum longest length: 100cm
- Maximum volume: 100,000cm3
There are some practical reasons behind these choices. If you’re fulfilling (packing and posting) your orders yourself, you’re going to be storing your stock in your house until it sells, and if you’ve got large items in your inventory, you’re going to start running out of space pretty quickly.
What’s more; the cost of posting out big, heavy packages to customers can quickly stack up – a cost which you may have to pass on to your customer. Customers are often put off by high shipping costs, plus Amazon considers your total asking price when allocating the Buy Box – this means your shipping cost is included.
Not to mention just the practicality of you having to lift and transport big packages – running an online store shouldn’t need to involve heavy lifting!
What could be a mild frustration can become a costly outgoing if you decide to make the most of Amazon’s FBA (Fulfilment by Amazon) service. If you haven’t already, check out our blog post on what FBA is and why you’d want to use it.
In a nutshell, FBA shares Amazon’s first class customer service and, perhaps most importantly, warehouse storage space with Amazon sellers. You ship your products off to Amazon’s warehouse to be stored until a sale is made. Once someone’s placed an order, Amazon will pack and post out your product to the customer.
Of course, this great service comes at a price. The fees for FBA are based primarily on (you guessed it!) weight and size. Here’s how Amazon puts it:
UK readers can see the full fee breakdown here.
The long and short of it (no pun intended) is that the larger an item is, the more you’re going to pay in FBA fees.
You pay a storage fee charged per cubic metre/foot per month, so obviously having a bigger product is going to take up more space and therefore cost more in storage fees.
You’ll also pay a fee for the cost of handling and transporting your products, which is based on the dimensions (length, width and height) and weight of your product. By limiting the length and volume of products in the ProfitSourcery dashboard, the fees should stay pretty reasonable on the products we surface.
When you’re sending your products to Amazon to be stored in the warehouse, you send over boxes with a maximum weight of 15Kg, so we set our weight parameter to be 7.5Kg, meaning you should be able to fit at least 2 units per box you send to Amazon. This will keep costs of sending your products to the Amazon warehouse down, as well as the handling fee.
ProfitSourcery is all about making selling on Amazon easier and more profitable, which is why we decided to limit the size of products we surface in the dashboard. By limiting the size of products you see, we’re saving you from paying too much in fees or postage costs.
Don’t forget, if you want to make the most of the products we show to our customers, you can get started for free with a 7 day trial today.