Introduction.
Selling on Amazon through Fulfillment by Amazon (FBA) has opened up opportunities for people looking to run a business from home or even grow an existing one.
However, the most common question is: “What should I sell?” Choosing the right products can make or break your Amazon FBA journey.
Without a solid product, it doesn’t matter how well you market or manage your store—it’s hard to succeed.
Let’s dive into the process of finding products to sell on Amazon FBA, breaking it down step by step. By the end, you’ll have a clear strategy to discover products that are profitable and in demand.
Why Finding the Right Product Matters
The success of an Amazon FBA business starts with the product. If you pick something no one wants or that’s too competitive, it’s going to be tough to make money.
A good product strikes the balance between demand and low competition.
You also want something with a good profit margin—what’s left after all your costs, like manufacturing, shipping, and Amazon fees.
But there’s more to it than that. Picking the right product means understanding trends, customer needs, and how to stand out from competitors. It’s not just about what you sell but how well you position your product.
How Do I Find Profitable Products for Amazon FBA?
Here’s a breakdown of how to approach product research.
1. Understand Amazon’s Categories and Trends
Start by exploring Amazon’s best-sellers page. This gives you an idea of what’s currently popular across different categories. Keep in mind that some categories, like electronics, might seem profitable but can come with challenges like high competition or frequent returns.
Look for:
- Categories with steady demand (e.g., home and kitchen, toys, outdoor gear).
- Products priced between $15 and $50. These are usually affordable for customers and allow decent profit margins.
- Items that solve a specific problem or fulfil a clear need.
2. Use Product Research Tools
Amazon has millions of products, so sifting through them manually isn’t realistic. Tools like Jungle Scout, Helium 10, and AMZScout are helpful. They show data like:
- Monthly sales volume
- Competition levels
- Average reviews
- Estimated profit margins
These tools help you avoid guesswork and focus on products with real potential.
3. Check Trends with Google
Sometimes trends on Amazon mirror what’s happening outside the platform. Using Google Trends, you can track how interest in a product has grown (or shrunk) over time.
For example, if searches for “reusable water bottles” have been consistently rising, it might be worth considering.
4. Look for Gaps in the Market
A good way to stand out is by improving on existing products. Read negative reviews of popular items and see if there’s a common complaint.
Can you create a better version of what’s already selling? For instance, if customers are saying a yoga mat isn’t thick enough, you could sell one with extra padding.
5. Avoid Problematic Products
Some products can be more trouble than they’re worth. For instance:
- Fragile items: Higher chance of breakage during shipping.
- Heavy or bulky products: High shipping costs can eat into your profits.
- Electronics: Risky due to potential defects or returns.
- Restricted categories: Amazon has strict rules around certain items like supplements or cosmetics. Make sure to review their policies before selecting these types of products.
6. Calculate Costs and Profit Margins
A product might look great, but if you’re not making enough profit, it’s not worth it. Use Amazon’s FBA Revenue Calculator to estimate costs like:
- Amazon referral fees
- FBA fulfilment fees
- Shipping and manufacturing costs
A good rule of thumb is aiming for a 30-40% profit margin after all expenses. For example, if you sell a product for $30, your total costs should be no more than $18.
7. Test Your Ideas
Before committing to a bulk order, consider ordering a small batch or even creating a pre-order listing to test customer demand. This minimizes risk and lets you tweak your product or marketing strategy before scaling up.
FAQs
Q: Do I need a lot of money to start?
No, but it depends on the product you choose. Some sellers start with as little as $500, focusing on low-cost, lightweight products. Others invest thousands upfront. The key is to start within your budget and reinvest profits as you grow.
Q: How do I avoid oversaturated markets?
Use research tools to check competition levels. If a product has hundreds of listings and most sellers have thousands of reviews, it’s probably too crowded. Instead, look for niches with moderate competition.
Q: Can I sell branded products?
Selling branded products through Amazon FBA can be tricky. You’ll need permission from the brand or become an authorized reseller. Otherwise, focus on private labelling, where you create your brand.
Q: How do I know if a product is restricted?
Amazon has a list of restricted categories and products. Make sure to review their guidelines and get approval if necessary. Tools like Jungle Scout often flag restricted items during research.
Q: What’s the difference between private labelling and wholesale?
- Private labelling: You create your brand and sell unique products.
- Wholesale: You buy branded products in bulk and resell them.
Private labelling gives you more control, while wholesale can be quicker to start.
Conclusion
Finding the right products to sell on Amazon FBA takes time, research, and a little creativity. By focusing on customer needs, using data-driven tools, and avoiding common pitfalls, you can build a profitable product lineup.
It’s all about balancing demand, competition, and profit margins while staying flexible to adapt as the market changes.
What product ideas are you most excited to research and test?
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