Kitchenware belongs to one of the most popular categories on Amazon. Many people believe that ware starts with a cup and a plate but cooking goes before eating. Therefore, pots and pans will always be at the top of the ladder. For our manufacturers of kitchen utensils, Internet shops in Europe and America are a great way to strike gold.
Let’s continue our topic about products for sale on Amazon in the Kitchenware niche.
We will try to answer such questions: What are the services to collect information? How to estimate your competitors? How to predict future sales and profits on US/EU websites?
Trends in search queries indicate that the demand for these products is constantly growing:
In this article we will pay attention to the pans selling, because this product does not have a large drop in demand, like pots. Seasonality affects pans only before two US holidays: Thanksgiving Day and Christmas. In November and December, the popularity quickly increases several times and after that quickly subsides.
We also check other combinations of search queries:
- buy a pan,
- pan amazon,
- pan ebay.
The trend analysis service also showed that since 2012 this category on Amazon has overtaken eBay in popularity. In the next article we will tell how to choose a store for the sale of pans and related products to America. You can keep in mind these query options and use them in the names and descriptions of your goods.
Let’s suppose that you are a manufacturer of non-stick pans of your own design. Sales in the retail network are going well, but you are interested in the opportunity to expand market outlet and increase your number of sales.
Analyzing product demand
More than 200 000 products are represented on Amazon now if you type «Pans» in the search box:
Amazon itself gives us tips on popular categories and properties of goods that need to be used when promoting your product. Attentive user will notice that pans of one manufacturer may be displayed in several categories. Given that the seller, adding a new product, can specify only one category for his product. This becomes possible thanks to the Amazon algorithm, which, if necessary, shows the product in several categories.
Most products are in the price range of less than $50 and 10% discount.
Pans price on Amazon
Experience gained working with American online stores suggests that the price for a similar product may vary from $15 to $75. So, for the first listing on Amazon and sales testing, you can list the goods in different tray settings. The peculiarity of the product allows you to form positions according to several characteristics, manipulating the total cost. For example, there may be such variations: a frying pan without a lid, with a lid, with adjustable handle, with multicolor handles.
Check the price of popular pans on Amazon. Top sellers trade in the range of $20-35. In a bad season, leaders manage to keep their sales at more than 2000 sales per month. The minimum is set at the level of 200 sales.
Thus, we can estimate the approximate monthly turnover and, knowing manufacturing and delivery costs, offer a customer a competitive price. It depends on the peculiarities of your production and desirable margin.
The cast-iron frying pans, popular in Ukraine, are not less popular on Amazon. However, leading positions were taken by the goods produced by the store itself. At the same time, unlike products with a ceramic coating, a minimum of 200 sales per month is achieved easier. Competition on American Amazon based on reviews, one of the most important factors taken into account by customers, is still weak.
Ware dimensions and weight –– the third most important item of our study
Dimensions and weight of a packed pan or a whole set directly affects the cost of delivery, warehousing and shipping to a buyer. Check our previous article on how to calculate expenses working with Fulfillment Amazon. Consider this item calculating the total cost of your product.
Let’s take a closer look at the leaders in the pans niche on Amazon and estimate the level of competition for market entry.
Without any programs, Amazon gives us some tips for analyzing the competition in the pans niche, namely:
- «Bestseller» products –– here you will actually find a product that is best sold in a particular category;
- quantity and quality of reviews –– we advise you to pay attention to products with a large number of reviews –– those with more than 500 will be your main competitors;
- BSR (Best Seller Rank) — the smaller BSR, the better. Products with the lowest BSR are bought more often than the products with the highest BSR.
The best product in the category «Standard Hangers» has BSR 48 in «Home and Kitchen». Always try to keep the BSR of your product below 5000 in the general category.
In the category «Cookware & Baking Pans» among top 20 best products labeled «Bestseller» the worst BSR is slightly more than 1000 and less than 50 reviews. This is your main competitor in this category. By placing a similar product in this niche, you can earn from $ 9,000 per month. And at worst, you can expect 150 sales per month.
A review of popular products showed that pans are bought more often from those sellers who offer faster delivery within 1-3 days (or through Amazon). This factor is called the “local seller” effect –– fast delivery as an alternative to going to the local store. Some sellers work with Fulfilled by Amazon and give most of their profits to Amazon through this program, but we offer the best delivery option of your goods directly to the buyer!
It is not profitable for companies engaged in the production of pans in Ukraine to send one item at a time. Shipping by Ukrposhta will cost even more than the pan itself and can reach $100.
Our batch shipping service offers a price of $1/kg. Learn more.
Conclusions about the prospects of selling pans on Amazon Analysis of the niche in the category «Home and Kitchen» showed that selling pans on Amazon is promising, both in terms of the number of sales and a possibility to combine sets based on one main bowl. But the main condition for maintaining a competitive price will be the cost of delivery. Also, there is a large selection of additional goods to create interesting sets in this niche.