Testing New FBA Inventory: A Step-by-Step Guide

Adding new products to your Amazon FBA (Fulfilment by Amazon) inventory can be a lucrative opportunity, but it also comes with risks. To minimise those risks and maximise your chances of success, it’s essential to follow a structured testing process. In this blog post, we’ll walk you through the step-by-step process of testing a new product before fully committing to it in your FBA inventory.

Step 1: Market Research and Product Selection

The first step in testing a new product is thorough market research and product selection:

  • Identify a Niche: Choose a niche or category that aligns with your expertise and interests.
  • Competitor Analysis: Analyse competitors in that niche to understand their product offerings, pricing, and customer reviews.
  • Market Trends: Identify emerging trends, seasonal patterns, and demand fluctuations using tools like Profitl.

Select a product that has the potential to fill a gap in the market or outperform other sellers and which has the potential to be profitable to you.

Step 2: Source a Limited Quantity

Rather than diving in with a large bulk purchase, start by sourcing a limited quantity of the new product. This reduces your upfront investment and risk. Consider:

  • Ordering a Small Batch: Place an initial order for a small quantity of the product. We’d suggest 10 units is a good test shipment size.
  • Testing Suppliers: If sourcing from multiple suppliers, assess their reliability and product quality.
  • Testing Variants: If applicable, consider testing different variants or versions of the product.

By sourcing a limited quantity, you can gauge demand and assess the product’s performance without a significant financial commitment.

Step 3: Launch a Limited Test Campaign

Now it is time to sell the new product on Amazon as part of a limited test campaign:

  • Set a Limited Timeframe: Specify a fixed duration for the test campaign.
  • Monitor Performance: Track sales, customer reviews, and product feedback during the test period.

A limited test campaign allows you to assess the product’s market reception and identify any potential issues.

Step 4: Evaluate Performance

After the test campaign concludes, evaluate the product’s performance based on key metrics:

  • Sales Volume: Assess how well the product sold during the test period.
  • Customer Reviews: Analyse customer feedback and ratings to identify areas for improvement.
  • Profitability: Calculate the product’s profitability by factoring in all costs.
  • Return Rate: Examine the product’s return rate and reasons for returns.

Evaluate whether the product meets your profitability and customer satisfaction criteria.

Step 5: Adjust Your Strategy

Based on your evaluation, decide whether to continue with the product:

  • Success: If the product performed well and meets your criteria, consider scaling up your inventory.
  • Improvement Needed: If the product shows potential but requires improvement address customer feedback and your own notes on the product and relaunch.
  • Failure: If the product did not meet expectations, consider discontinuing it or exploring other product opportunities.

Step 6: Inventory Expansion (If Applicable)

If you decide to continue with the product, gradually expand your inventory:

  • Order Larger Quantities: Place larger orders based on the demand observed during the test campaign.
  • Optimise Inventory Management: Use tools like Profitl to manage your inventory efficiently and avoid stock outs or overstock situations.

Scaling up your inventory should align with the product’s proven demand.

Concluding thoughts

Testing a new product for your Amazon FBA inventory is a strategic process that involves careful research, limited sourcing, and thorough evaluation. By following these steps and utilising tools like Profitl for market research and competitor analysis, you can make informed decisions about which products to add to your inventory, minimise risks, and increase your chances of success in the competitive Amazon marketplace. Remember that patience and data-driven decision-making are key to successfully introducing new products to your FBA inventory.

We want to help you to succeed and reach your FBA goals. That’s why we made Profitl. Profitl determines the best FBA deals wherever you are – in-store or online – through two solutions for one monthly price. Scan any item and analyse the data in a split second. Profitl supports you so you can create an incredible business. Check out our website here

If you are interested in learning more about Amazon FBA check out our Youtube channel. It is a great place to learn more about how Amazon FBA works and how to grow your business.

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