How to Sell Seasonal Products on Amazon and Make a Quick Profit!
Christmas or US Independence Day might be holidays for others, but FBA sellers don’t take time off. Last-minute purchases are hectic! People running around from pillar to post, hunting for gifts, decorations, or holiday-related products is quickly being replaced by the ease of online shopping. Nowadays, the Internet is an online shoppers oyster, as they browse through everything from Amazon’s top selling products to hobby and vocational products, as well as seasonal products with ease. Here, we will guide you through how to sell these types of products, making a few quick bucks in the process.
The first thing you should remember it that this niche is made up of high risk products to sell on Amazon. But, the higher the risk, the higher the reward! The investment might be lower compared to other areas of business, and when considering the ROI, they are normally quick selling products that have higher returns. Taking these point into consideration, the advantages of a seasonal product can often outweigh the disadvantages of selling.
So, advantages of seasonal products are:
✓ Low investments
✓ Quick profit/returns
And disadvantages/risks are:
✓ Not suitable for long-term profit
✓ Higher risks
Risks are especially high for products that have a selling season that lasts only a few weeks (about 1-4 weeks) per year. For example, Halloween, Christmas, Easter, and similar holidays have these short seasons. Risks are high as it is quite difficult to predict the inventory. This can possibly lead to missing potential profits by not stocking enough (not a terrible problem to have), or it can lead to having “deadstock,” i.e. unsold items/blocked money/investments (that’s a big problem!).
This picture shows trends for highly seasonal product such as “Christmas lights”. Demand starts growing in the middle of October, reaches its peaks in middle of December and falls down by January. So, Christmas lights sellers have only 6-8 weeks a year to earn potential profits off of these items.
Some seasonal products have a longer selling cycle, risks for these are lower. For example, these can be winter, spring, summer or autumn products, e.g. bikini, trekking boots and inflatable swimming pools for summer or ice-skating shoes, gloves and thermals in winter.
Another example of seasonal product. This picture illustrates trends for “inflatable swimming pool,” which has a considerably higher demand in summer season. The demand starts growing in the middle of May and falls by the end of August. So, there are only about 3 months a year to make a good profit.
How to Plan Such Seasonal Sales?
The predictability of a season, holiday, or any annual event can help you plan your marketing efforts as well as your budget. It is a creative process that involves a lot of imagination since you have to predict what designs and products will be in demand. It is also important to have a pricing plan. Checking Google Trends or AMZScout for peaks can help you with these.
This example shows the price history for winter gloves. As we see, the FBA seller sells it for $10 during the season (October to February), and reduces the price to $7 during the off-season (April to September).
This example shows the price history for a Christmas light set. The seller increased the price up to $15 in December to maximize the profit, while regular price is about $8.
What Is It Important to Know Before Selling Seasonal Product?
Once again, selling a seasonal product is risky. Remember that and try to be on the safe side. Think ahead about an exit strategy, i.e. what to do if the product is not completely sold out. Here are two options:
✓ Selling on a discount
✓ WIthdrawing the stock and keeping it until the next year
Before Launching a Seasonal Product…
Smart Amazon sellers prepare their seasonal products well ahead of the start of the season. They keep it ready for purchase online so once they step into the season, the business goes red hot!
So, before the demand goes up it is important to:
✓ Prepare your listing. Make sure to use suitable keywords, take care in writing a good description, and prepare quality images.
✓ Make sure stock is ready before the demand goes up. Make sure your product is delivered to the Amazon fulfillment centre in advance.
✓ Take care of customer reviews. It is required to prepare and have good and sufficient number of reviews before the demand peaks. This guarantees that your product will come on the first page. Thus, skimming a piece of the fattiest sales :)
A good piece, but the last piece of advice! Don’t choose a seasonal product as your first product! Use seasonal products only when you are sure how, and want to make a quick profit. Good luck!