What To Sell On Amazon? Finding the Best Products for Your Business
Amazon sells approximately 400 million products. Beginners or even experienced merchants have some difficulties in searching through this giant market and coming up with the best product to invest their time and effort.
For beginners, selling on Amazon is the first step to learn more about the eCommerce world. And choosing the product to sell is the first preparation step to start with this platform.
In this guide, we’ll show you What to Sell on Amazon: How to Find The Best Products For Your Business?
Ready to get started? Let’s dive deep right now!
Table of contents
- What is Amazon?
- Why should you sell on Amazon? Is selling on Amazon profitable?
- Which types of products are profitable on Amazon?
- How to figure out what to sell on Amazon?
- What are the best products to sell on Amazon FBA?
What is Amazon?
Amazon is among the most popular online marketplaces, which is used by both individuals and businesses. The site is available several different countries and languages. Amazon enables users to sell and display their products for sale in line.
The headquarters of Amazon is located in Seattle, Washington. The organization has individual websites, software development centers, customer service centers, and fulfillment centers in many different countries in the world.
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Why should you sell on Amazon? Is selling on Amazon profitable?
Third-party Amazon sellers are increasing in number, and witnessing constant increases over time. Third-party sellers made up for 3% of Amazon sales in 1999, while this percentage gradually escalated up to 58% in 2018.
From these statistics, it’s obvious that third-party sellers are contributing a large number of sales for Amazon. These numbers are even incredible as Amazon’s first-party sales had grown from $1.6 billion in 1999 to $117 billion in 2018.
Whether you are an ambitious beginner who prefers doing it on your own or you want to delegate and utilize the services of others, selling your own brand on Amazon still gains you profit. You can choose to manage the shipping, customer service, and other tasks by yourself, or use Amazon FBA and let the team handle all the details of the sale.
Which types of products are profitable on Amazon?
Amazon itself arranges a list of current best-sellers, from toys to books to video games, and the list is updated every hour. Here are some top profitable products on Amazon:
Books is an amazingly popular category on Amazon, especially as physical book chains keep going out of business. You’ll see new releases and best-sellers, older classics, all usually sold for no more than $20. As a seller, books are considered a potential choice as you can typically purchase them in bulk and then sell them on Amazon for a profit.
Clothing, Shoes and Jewelry
It’s undeniable that Clothing, Shoes and Jewelry category is a popular one. However, it’s also oversaturated with items. Therefore, it’s vital that you make sure you can sell something special and unique, and for a reasonable price. People don’t go to Amazon for high-cost brand products - instead, they expect the discounts. Reduced prices will encourage customers to buy more and more.
Electronics is another category on Amazon that shows competitive prices on some of the world’s most common electronics. It’s also a promising category if you can purchase electronics in bulk.
Toys and Games
Toys and Games is another choice for you when you look for profitable products to sell on Amazon. You can try selling this category in the first place.
Besides, there are also several categories with good performance on Amazon. Here are three common categories sold on Amazon and the Marketplace:
- Home and kitchen - 64.3 million items sold
- Clothing, shoes and jewelry - 33.4 million items sold
- Tools and home improvement - 11.1 million items sold
It’s clear that the more common the product category, the more extreme the competition. It’s critical that you seek your niche to make sure you will not compete with the 300,000 other finding results for “white t-shirts.”
How to figure out what to sell on Amazon?
It’s essential to note that you’ll need to conduct your research on shipping costs and Amazon seller fees, so you know how much you’ll invest depending on your product. This information can narrow your decision, for example, a two-pound product will be light and easy to deliver, which can help reduce your shipping costs.
In addition to weight, you’ll need to consider items that aren’t easily breakable when you’re delivering them.
Moreover, most items on Amazon fluctuate between $10 and $50, so you’ll need to pick up items you can sell for low prices, while still gaining a profit.
Here are some methods to figure out what to sell on Amazon:
Manually research on Amazon.com
When you manually conduct research on popular products on Amazon, you can define which product you would like to sell and you’ll want to begin with the best-selling products of Amazon in a specific category. When you already discover a category, and sub-categories, you can narrow down on a niche.
As you check out the best-sellers list of Amazon, you might consider the “Customers also bought” section to have ideas for the same products.
When you create a list of products, check Google keyword planner to know if those items have search volume, which shows a level of demand. In another way, you can utilize Sellerapp’s product intelligence tool, particularly for Amazon. Sellerapp provides a seven-day free trial, which enables you to start investigating popular items on Amazon through keywords to narrow down your list further.
Use a chrome extension to search items in a niche market
Jungle Scout and Unicorn Smasher are common chrome extensions that assist you in doing keyword research on Amazon, which provides you monthly sales volumes on items, shows products with poor competition, and enables you to save items and track them later. Undeniably, thanks to Jungle Scout’s analytics, you can narrow down fast and effectively on an item or an industry where you could excel. Nevertheless, Jungle Scout is comparatively expensive, especially if you’re beginners.
Although Unicorn Smasher doesn’t have some of Jungle Scout’s significant features, it’s a useful free choice to collect estimated monthly sales and monthly sales revenue for Amazon items.
Look for a gap in the market
You might bump into a gap on Amazon via simple organic search, for example, when you search “women shoes” there are more than 100,000 findings, but when you search “women running shoes pink” there are only 1,000.
This is a simple example; however, sometimes you have to narrow down your item search to look for a place to create an impact on Amazon. Many people are already selling shoes, but there might be a specific style, color, or sort of shoes that is missing on the website.
Besides, you can search for a gap in the market by viewing customer reviews in your product market niche. Even if there are many items similar to yours, you might see that customers are discontent with the current brands and want something you can offer.
Choose products that have less competition
If you’re planning to sell an item that has 100,000 search results, it’s likely going to be very challenging to get the spotlight against the competition and get the sales you want. Luckily, it’s quite simple to look for a niche within a larger market that doesn’t have too much competition, which makes sure customers more easily found your item. Moreover, these customers are likely more ready to purchase your item, because they necessarily search a more targeted keyword.
For example, given that you would like to sell cookbooks, the when you search “cookbooks,” it shows more than 70,000 results.
Instead, you can try the term “Cookbooks for instant pot cooking” which has only 3,000 results. Your item not only has more chances to become a best-seller in this category but it’s a more specific keyword as well. If someone searches “Cookbooks” they could mean something like “Easy cookbooks” or “Winter cookbooks”. Meanwhile, if someone searches “Cookbooks for instant pot cooking”, they would be more content with your item.
Look for categories with at least three results with Best Seller Rank (BSR)
Amazon’s Best Sellers Rank (BSR) includes both recent and historical sales of a product, therefore, a high BSR shows that the item is in demand, which is important. Nevertheless, if you find just one item in a category with high BSR, and none of the other products are best-sellers, it’s not a positive sign.
For example, given that you would like to sell sports items, but you find “soccer balls” has only one product with a high BSR. Conducting more research, you find “basketballs” as a category has numerous best-selling items on the first page.
This is a positive sign. That means there is not one “best” item, and shows a user’s willingness to check many different items before buying one.
Eventually, you would like to see that an item has high BSR as it symbolizes a demand for that item. However, you also want to see numerous products with high BSR in that category, which indicates that your product still has chances to succeed.
Choose a product sold from $10 to $100
If you are just starting out, the ideal price range of items for you to sell is no more than $100. A lot of sellers do well with expensive products. It seems a good idea to choose a higher priced product as you can earn more money theoretically.
However, let’s put yourself in customers’ shoes.
When you sell something more than $100, you’re out of the “impulse buy” category. Now you’re discussing things like sofas, TVs, laptops and so on. And you’re more likely to talk to your friends or your spouse, find good reviews about that product, watch more videos on Youtube, etc.
Nevertheless, if you’re purchasing something that costs about $30, you’re not spending so much time conducting that research.
The lower the price of the product is, the less likely consumers will want to get more information about it. Plus, customers are more ready to make a purchase as long as it satisfies their needs.
When picking a product, seek a product that costs $10-50 to sell and concentrate on selling in large quantities.
No dominant brand(s) in the market
Brand recognition is really significant, particularly in some industries.
You may not remember what brand of napkin you bought last, but you definitely still remember the brand you purchased your last car.
Brand dominance can be a beneficial factor on Amazon. If you utilize Jungle Scout to assess sales numbers on grass seed indicates that Scotts Turf Builder gains $100,000 a month and the no-name brands gains $2,000. That’s a sign that customers are brand loyal in this category.
A lot of FBA courses suggest that you sell an item that could fit inside a shoebox. This is because your shipping and fulfillment fees for that product are going to be lower, compared to selling something heavy and big.
Numerous heavy and oversized items perform very well on Amazon. Nevertheless, it’s important to know the dimensions and weight and which tier you’re in before you decide to make a purchase.
Here’s the table of Amazon categories based on size:
To get what your FBA costs are, you should utilize Amazon’s calculators and add a product that is very similar to yours in regard to size and weight.
If there are margins for an oversized product, don’t hesitate to go for it. It’s typically a little riskier as you’re going to pay more to purchase inventory, but the payoff can be much more if it’s effective.
Choosing something small and light is ideal, but you have to ensure it meets all these other criteria regarding competition, sales rank, and sufficient margin.
What are the best products to sell on Amazon FBA?
Product that is small, lightweight and has 100 reviews
Seek products that have small size and weight, which can support shipping. It’s easy and cheap to import them. When you have already sourced such products, search for another significant factor, which is “reviews”. Choose some products that have 100 - 120 reviews.
Products that vary from $25 - $50
As mentioned earlier, products between this price range are going to create better sales. The reason for this is that they include some direct costs such as the costs of the products sold, advertising fees, and Amazon seller fees. Nevertheless, any products above $50 would be different regarding sales. Your conversion rates, plenty of buyers viewing your products, and the possibilities of purchase - drops.
Product that is easy to manufacture
Obviously, you’ll not want to experience any problems in manufacturing and controlling quality. Therefore, find products that can be simply manufactured and durable. Stay away from electronics, glass, crockery or complicated items that are beyond your knowledge.
Product that can be sold year round
You should never choose seasonal seasonal, because they will generate some sales for you only at the specific season. Look for products that can be sold all year around.
Product that has a chance to improve
Find some product listings of your competitors and read through the reviews. Take notice of the negative reviews. Attempt to dodge those mistakes while selling your own items and provide more professional customer service than your competitors.
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We hope that this post What to Sell on Amazon: How to Find The Best Products For Your Business? can help you understand the real science behind choosing successful products. Amazon is a giant e-commerce marketplace; therefore, there are numerous profitable chances out there for merchants.
To grab that golden chance, it is essential to conduct proper research to figure out the most appropriate product to sell. Moreover, an impressive purchasing experience can get customers to return to you for more. It’s not about the number of sales you generate per day. It’s about the number of customers that come back to you. That helps you gain more success as an Amazon seller.
Share with us if you have other great ways to explore what to sell on Amazon. Tell us in the comment section. Thank you for reading!