Learn how to identify profitable products for your Amazon FBA business through systematic research into demand, competition, and profit margins.
Jens Vittrup
Amazon product research is the key to a successful Amazon business. Whether you are new to the platform or already have experience with selling on Amazon, the ability to identify the right products is crucial for your success. In this guide, we delve into the methods, tools, and strategies that can help you find profitable products for Amazon FBA.
When searching for what to sell on Amazon FBA, it is all about finding the balance between high demand, low competition, and healthy profit margins. With the right techniques, you can systematically identify product opportunities that match your business goals and resources.
Amazon product research is the process of analysing the market to identify products with the potential to be profitable on Amazon. This includes examining demand, competition, seasonal fluctuations, price points, and much more.
Thorough product research is essential for several reasons. Firstly, it helps you avoid investing in products with low demand or excessive competition. Secondly, it gives you insight into what customers are actually searching for, allowing you to tailor your products to their needs. Thirdly, it can reveal high-profit niches that other sellers may have overlooked.
Starting your Amazon FBA journey without proper product research is like sailing without a compass. You might get lucky and reach your destination, but the chances of getting lost are significant.
When conducting Amazon research to find potential products, there are several key factors you should take into account:
By systematically evaluating these factors, you can narrow your search and focus on products with the highest potential for success on the Amazon platform.
There are many different approaches to identifying how you can find best selling products on Amazon. Here are some of the most effective methods:
Amazon’s Bestseller lists provide a real-time snapshot of what is currently selling well. These lists are updated hourly and offer valuable insights into consumer buying behaviour. You can explore bestsellers within specific categories and subcategories to identify trends.
Go beyond just the main categories. Subcategories often reveal niche opportunities with less competition. Take note of products that consistently appear on these lists over time, as this indicates stable demand.
Customer reviews are a goldmine of information. Read reviews of products in your areas of interest to identify:
By addressing issues that existing products do not solve, you can find a niche with less competition and more loyal customers. This is a key strategy in effective Amazon FBA product research.
Amazon’s search autocomplete can provide insight into what customers are actively looking for. When you start typing in the search bar, Amazon suggests popular searches based on what other users are searching for.
These suggestions reflect genuine customer interest and can reveal product opportunities you might not have considered. In addition, you can use Amazon SEO tools to identify related high-volume keywords.
Platforms such as Instagram, TikTok and Pinterest can be invaluable for identifying trending products early. Follow influencers within your areas of interest, explore popular hashtags, and keep an eye on products attracting significant attention.
Consumer trends often start on social media before being reflected in Amazon’s sales data. By staying alert on these platforms, you can spot opportunities before they become oversaturated.
While manual research methods are valuable, specialist tools can significantly enhance the effectiveness of your product research. Here are some of the most popular tools used by successful Amazon sellers:
Helium 10 offers a suite of tools specifically designed for Amazon sellers. Their Black Box tool allows you to search for products based on specific criteria such as monthly revenue, number of reviews, price point and more. Other useful features include:
These tools can help you make data-driven decisions and identify profitable niches with precision.
Jungle Scout is one of the oldest and most respected Amazon research tools. Their Chrome extension provides instant insights into product performance directly from Amazon’s product pages. Jungle Scout also offers:
Jungle Scout is known for the accuracy of its sales estimates, making it a valuable tool for Amazon marketing and research.
AMZScout offers both a web application and a browser extension for product research. Their Pro Extension provides quick product analysis directly on Amazon’s website, while their Product Database lets you filter products based on specific criteria.
AMZScout also has a Product Tracker feature, which monitors product performance over time, giving you insight into seasonality and long-term viability. This is especially useful when considering what to sell on Amazon FBA and ensuring the product’s durability.
When considering the best products to sell on Amazon FBA, it can be useful to focus on certain categories that have historically proven profitable. Here are some categories that often yield good results for FBA sellers:
Home and kitchen is one of the most popular categories on Amazon, with steady demand throughout the year. Products in this category include:
These products often offer good profit margins and have relatively low return rates. In addition, many products in this category are compact and lightweight, which reduces shipping costs.
Beauty and personal care products typically have high profit margins and can often be sold in bundles to increase average order value. Popular products include:
This category enjoys a high repeat purchase rate, as customers return to buy more when the product runs out. Expertise in Amazon advertising can be especially valuable in this competitive category.
The sports and leisure category attracts enthusiastic customers who are often willing to pay more for quality products. Opportunities include:
Niche sports products can often be sold at higher prices with less competition, especially if you can offer innovative features or improved design.
Parents prioritise safety and quality highly, which often means they are willing to pay more for products for their children. Popular areas include:
This category has a constant stream of new customers, as new parents are always coming through. However, adhering to safety standards is crucial, so make sure you conduct thorough research and ensure compliance.
When conducting your Amazon FBA product research, there are certain product features that can make a significant difference to your success. Here is what you should look for:
Smaller and lighter products are generally more profitable for FBA for several reasons:
A good rule of thumb is to aim for products that can be shipped in a small or medium-sized parcel and weigh under 2 kg. This maximises your profit while minimising logistical complications.
The ideal price range for Amazon FBA products is typically between 15-50 EUR for several reasons:
Of course, there are exceptions to this rule, but for most new sellers this price range is a good starting point. Remember to consult with Amazon consultants if you are unsure about the optimal pricing strategy.
A healthy profit margin is essential for long-term success. When evaluating potential products, you should aim for:
Use Amazon’s FBA calculator to estimate your fees and profit margin for potential products. Do not underestimate the impact of Amazon Seller Central fees in your calculations.
Products with clear opportunities for improvement give you a competitive edge. When analysing reviews of similar products, look for:
Being able to offer a product that solves existing issues not only gives you an advantage over the competition, but can also lead to better reviews and higher conversion rates.
Although there are many strategies for finding profitable products, there are also pitfalls you should be aware of. Here are some common mistakes to avoid:
High demand often also means high competition. Many new sellers focus only on products with high monthly sales figures, but this can be a mistake. Products with moderate demand but low competition can often be more profitable in the long run.
Instead of chasing products with 1000+ monthly sales, consider products with 200-500 monthly sales but fewer competitors and higher profit margins. These “hidden gems” can provide more stable revenue with lower advertising costs.
Many products have significant seasonal fluctuations in demand. Launching a seasonal product at the wrong time can result in a slow start and excess stock.
Use tools such as Google Trends or Helium 10’s Trendster to analyse seasonal patterns for potential products. If you decide to sell a seasonal product, plan your launch strategically to maximise sales during peak season.
Just because a product has high sales does not mean it is easy to capture a share of the market. Assess the competitive landscape thoroughly by analysing:
If the first 10 search results all have 1000+ reviews and optimised product listings, it can be difficult to break through without significant investment in Amazon agency services or extensive PPC campaigns.
Different product categories have different legal requirements and restrictions. Certain products require certifications, compliance, or approvals in order to be sold on Amazon.
Before investing in a product, thoroughly research all legal requirements and Amazon’s own restrictions for the product category. Categories such as toys, electronics, and cosmetics often have stricter requirements, which can increase your startup costs and complexity.
Now that you have a thorough understanding of the principles and tools for Amazon product research, it is time to develop a structured approach. Here is a step-by-step guide to getting started:
Start by setting clear criteria for your potential products based on:
Having these criteria clearly defined from the outset helps you focus your research and avoid wasting time on products that do not suit your needs.
Use Amazon’s bestseller lists and research tools to generate an initial list of potential products. In this phase, you should focus on quantity over quality and compile a broad list of options.
Be sure to look at different categories and subcategories, as niche categories often have less competition. Also note products that appear in the “Frequently bought together” and “Customers who bought this also bought” sections.
Now it is time to delve deeper into each potential opportunity. For each product, you should analyse:
This process narrows down your list to the most promising options. Taking part in an Amazon course can provide you with valuable insights during this analysis stage.
For the products that perform best in your analysis, it is time to research suppliers and precise costs. Contact potential suppliers on platforms such as Alibaba or via industry conferences to get:
Then calculate your total costs, including product, shipping, customs, Amazon fees, and advertising to confirm that your profit margin requirements can still be met.
Once you have narrowed it down to a few strong candidates, consider ordering samples to assess quality and functionality. Based on your testing, you can:
Remember, product research is a continuous process. Even after launching your first product, you should continue to explore new opportunities to expand your product line.
The Amazon marketplace is constantly evolving, as are the methods for effective product research. Here are some trends shaping the future of Amazon research:
AI-powered tools are becoming increasingly sophisticated at predicting product trends and consumer behaviour. These tools can analyse vast amounts of data to identify emerging trends before they reach the mainstream.
By integrating data from social media, search engines, and Amazon’s own marketplace, these AI systems can give sellers a competitive advantage in identifying new product opportunities early in their lifecycle.
Consumers are increasingly environmentally conscious and seeking sustainable products. This creates opportunities for sellers who can offer:
Incorporating sustainability into your product strategy can both differentiate your brand and appeal to the growing segment of environmentally conscious consumers.
As AR technology becomes more widespread, the way consumers shop is changing. Products that can be visualised in the home via AR apps may have a competitive edge.
This creates opportunities for products that have traditionally been challenging to sell online, such as furniture and home décor. Sellers who can offer AR-compatible product visualisation can potentially achieve higher conversion rates.
To maximise your chances of success with Amazon FBA, remember these key strategies in your product research:
Amazon product research is not a one-off effort, but a continuous process. The most successful sellers are constantly seeking new opportunities and adapting their strategies to changes in market trends.
By systematically applying these strategies, you can identify profitable product opportunities and position your Amazon FBA business for long-term success. Remember, thorough research at the outset can save you costly mistakes later and set you on the path to a thriving Amazon business.
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