How To Know What To Sell On Amazon FBA

Introduction.

If you’re looking to start a business on Amazon FBA (Fulfillment by Amazon), one of the biggest questions is: what should you sell? Picking the right products is crucial to success on Amazon, but it can feel overwhelming.

With so many options, it’s easy to get stuck trying to figure out what’s going to sell, what’s too risky, and what will be profitable.

Choosing the right product can mean the difference between a steady income and a pile of unsold inventory, so making a thoughtful choice is worth it.

In this guide, I’ll walk you through what to look for, the tools you can use, and the factors that can make a product successful on Amazon.

Why Is It So Important to Choose the Right Products for Amazon FBA?

Picking the right product is the first step to setting up a profitable Amazon FBA business. Unlike a traditional retail business where you have a storefront and can sell multiple products, selling on Amazon means relying on your product listing and reviews.

You won’t have that face-to-face interaction with customers, so your product choice, listing, and reviews carry most of the weight in making sales.

With Amazon FBA, you’re paying for storage, fulfillment, and shipping services, which makes it easy to scale up.

But that also means having products that sell quickly to avoid fees on unsold inventory. Knowing what to sell helps keep costs low and boosts your chances of making a profit.

How Do I Choose Products for Amazon FBA?

1. Understand Market Demand.

It’s essential to find products with demand. Without demand, your products will sit in the warehouse, gathering fees. Tools like Jungle Scout, Helium 10, and AMZScout can help you track demand, competition, and profitability.

2. Look for Low Competition.

High competition can make it hard for new sellers to stand out, so it’s wise to start with products that aren’t too saturated. Look for products with a moderate number of reviews, where there’s demand, but the competition isn’t too intense.

3. Aim for High-Profit Margins.

Amazon FBA fees can eat into your profits, so look for products where you can sell at a markup. Ideally, aim for a 30-50% profit margin, so that after all costs, you’re left with a healthy return.

4. Consider Size and Weight.

Smaller, lighter items are often cheaper to store and ship, helping you keep fees low. Bulky items can quickly eat into your margins with storage and shipping fees.

5. Avoid Seasonal Items (for Beginners).

Unless you’re an experienced seller, seasonal products (like Christmas or Halloween items) can be risky. They can bring big sales for a short period, but if you can’t sell everything, you’ll be stuck with excess inventory for the rest of the year.

6. Check for Amazon Restrictions.

Amazon has restrictions on certain categories and products (like food or beauty products). Before you decide, make sure your product is not restricted or requires special approval.

Pros and Cons of Selling on Amazon FBA

Pros:

• Convenience: Amazon handles storage, shipping, and customer service, so you can focus on your product and listing.
• Prime Eligibility: FBA items are eligible for Amazon Prime, which can boost your sales, as Prime members are more likely to buy FBA products.
• Scalability: With Amazon handling logistics, it’s easier to scale your business quickly compared to traditional eCommerce.

Cons:

• Fees: FBA comes with various fees (storage, fulfillment, etc.) that can eat into your profits, especially if products don’t sell quickly.
• Inventory Risk: If your product doesn’t sell, you’ll face storage fees, and potentially, unsold stock.
• Competition: The marketplace is crowded, and competing with other sellers (and sometimes Amazon itself) can be challenging, especially if they undercut your price.

Common Mistakes New Sellers Make (And How to Avoid Them)

1. Focusing Only on Popular Categories: Many new sellers jump into high-demand categories like electronics or beauty, which are also highly competitive. Try finding a niche or subcategory where there’s demand but less competition.
2. Skipping Product Research: Taking shortcuts with product research can lead to poor decisions. Invest time in researching demand, profit margins, and costs to make sure your product has a real shot at success.
3. Ignoring Hidden Costs: It’s easy to underestimate Amazon fees, especially storage fees. Use an FBA calculator to estimate all costs, so there are no surprises.
4. Choosing Products Based on Personal Preference: Just because you like a product doesn’t mean it’ll sell well. Base your decision on market data, not personal opinion.

FAQs

Q: How do I know if a product is profitable?

A: Calculate all your costs (product cost, shipping, FBA fees) and compare them to the potential selling price. Tools like Amazon’s FBA calculator can help estimate profitability.

Q: Can I sell branded products?

A: Yes, but be aware of Amazon’s brand restrictions. Some brands require permission, and selling without it can lead to issues with your account.

Q: Should I focus on trendy products?

A: Trendy items can bring quick profits but can also become obsolete quickly. For a long-term strategy, aim for evergreen products that have steady demand over time.

Q: How much inventory should I start with?

A: It depends on the product, but many sellers start with a small batch to test the market before ordering in bulk. This minimizes risk if the product doesn’t sell as expected.

Q: What is a good profit margin for Amazon FBA?

A: Aim for at least a 30% profit margin after all fees to ensure you’re making a worthwhile return. Anything lower can be risky due to fees and price competition.

Conclusion

Starting an Amazon FBA business can be incredibly rewarding, but success often starts with choosing the right product. From understanding demand and competition to managing fees and avoiding common mistakes, careful planning is essential to build a profitable and sustainable FBA business.

So, what product ideas are you considering for your Amazon FBA journey? Or if you’re still searching, what are the biggest challenges you’re facing in picking the right one?