07 Feb How to Find Profitable Products to Sell on Amazon
As you’re (probably) well-aware, Amazon is the most popular site for online shopping. Millions of people around the world visitors the Amazon Marketplace every day, with many of these visitors spending upwards of $1,400 a month! Long story short, Amazon represents a fantastic opportunity for anyone looking to make some money online.
However, there’s a problem—in order to make money on Amazon, you need to be able to spot (and source) products with potential. The Amazon Marketplace has around 1.9 million active sellers, all of whom are scouring sites like Alibaba and AliExpress to find their next FBA bestseller. That’s a lot of people to compete with when it comes to Amazon product sourcing!
Don’t feel discouraged, though. Finding profitable products to sell on Amazon isn’t as difficult as I’ve been making it out to be, IF you stick to a few proven strategies. By following the tips below, you can quickly and easily find products that are in high demand and have a high potential for profit.
Let’s get started!
What makes a product, profitable to sell on Amazon?
A word of warning before we start: not every Amazon FBA product is a winner. Some products just don’t sell well! There’s nothing worse than choosing a product you think will do well, only to find yourself paying long-term storage fees for unsold stock a year down the road. In order to avoid this fate, it’s important to understand Amazon product sourcing best practices.
Here are some things you should be looking for:
- High Demand: You to be selling products on Amazon that will… well, sell! That means looking for products that have around 300 sales per month (or 10 days per day). This isn’t a hard-and-fast rule, but it is a recipe for success!
- Few Reviews: Products and sellers on the Amazon Marketplace are partially ranked based on relative customer feedback (i.e., comparing the reviews of sellers within a niche). If a top sellers have thousands of reviews, your 100 review product isn’t going to get much attention. In order to hold your own, we recommend looking for niches where the top sellers have less than 200.
- Markup-able: Markup-able technically isn’t a word, but it does capture an important trait of a successful Amazon FBA product. You need to be able to sell products for more than it cost to buy them. In order to make the endeavor worth your effort, we recommend looking for products that can sell for 4X the sourcing cost.
- Low Weight: Heavy items are more expensive to transport and store. To lower your expenses and increase your profit margins, try to find lightweight objects. We recommend starting with products that weigh less than 5lbs.
- Small Size: Bigger products also cost more to ship, and since they take up more room on the shelf, you’ll get charged more for storage. If you want to keep your costs low, look for smaller items. We recommend starting with products that are smaller than 18” X 14” X 8”.
How To Find Profitable Products?
Now that we have that background out of the way, let’s go over a few ways to find profitable Amazon products to sell:
1) Check Out Amazon Best Seller Lists
One of the best ways to find profitable products to sell on Amazon is by checking out the Best Sellers lists. These lists are based on the volume of sales, so you can see what people are buying the most. This is a great way to get ideas for products to sell on Amazon.
If you want to go deeper with your onsite research, you can use Amazon’s Best Sellers Rank (BSR) ranking system. Each item is assigned a value based on the amount of items in a certain category to show vendors where it ranks in terms of sales volume. While BSR can’t be used as a direct predictor of sales success, it does indicate a product’s popularity. That means you can use it as a rough indication of potential daily sales for a product.
Note: Targeting items that rank in the top 10% of a category with a huge number of items is far more useful than comparing ranks across categories (which all have their own supply and demand ecosystems).
2) Perform Keyword Research
If you want to develop an Amazon FBA strategy that’s sustainable, flexible, and profitable, you’ll probably need to do some keyword research. This will help you determine the best keywords to use for your listings, as well as which products people are searching for (both on Amazon and the internet at large).
To do this, we recommend using automated tool like Merchant Words or in-depth research with usable keywords using managed services for Amazon Sellers. These tools can give you an idea of how competitive a market is, what the search volumes are, and which keyword combinations are likely to be successful.
Keep in mind that many of these tools come with a monthly fee after a free trial, but you may just find that they’re worth the cost!
3) Use Amazon’s “Frequently Bought Together” Feature
Amazon’s “Frequently Bought Together” feature makes recommendations based on a customer behavior, search, and purchase history. If you’re not familiar with this feature, it essentially recommends additional products that a customer might want to add to their order.
Here’s an example:
As you can see, the recommended items stick within a single niche and are more-or-less complimentary to one another. This is a great way to discover products that may have earning potential on Amazon. The algorithm is essentially telling you:
a) That people are interested in the recommended products
b) That the algorithm is predisposed to recommend the products in question.
Both of those are good things if you want to find products to sell on Amazon!
4) Use Product Reviews To Identify Market Gaps
Once you’ve decided on a potential product or niche, take a look at the reviews sections for high ranking results—there’s a lot you can learn! Consider the amount of reviews first. If a niche has tons of reviews, there are a few things you can learn:
- Demand is high.
- Earning potential is high.
- Competition is high.
Likewise, if there aren’t many reviews, it might indicate that the opposite is true.
Amazon reviews are a goldmine for market insights. Many consumers will go into great detail about the benefits and drawbacks of a product, as well as where specific sellers fall short. Take advantage of this free data on your customer’s pain points and learn from other merchants’ mistakes to produce something that goes one step further than the competition.
In the article, I’ve given you a few simple tips for finding profitable products to sell on Amazon. You don’t need any experience or knowledge about what sells well—you just have to follow these easy steps and find something that is in high demand with a lot of potential profit! Finding a product to sell is first step, once you have found an item, the next step is create a well optimized Amazon product listing. With hard work and a little luck, you’ll be making your first sales soon enough!