One of the biggest challenges Amazon sellers face is finding the right products to sell. Amazon is a huge marketplace offering endless possibilities, but where and how do you find products that will stand out? And how to make sure they will generate profits?
In the post, we’ll provide a comprehensive solution to this challenge by guiding you through proven strategies and tools to discover profitable products.
Note. The way you find products for Amazon depends on which business model sellers use: wholesale, online arbitrage, dropshipping, retail arbitrage, or private label. In each case, the approach is essentially different. This post will be most useful for wholesale and online arbitrage sellers, and dropshippers.
How Finding Products to Sell on Amazon Works?
Finding the right products to sell on Amazon is crucial for your success as a seller. The process involves several strategic steps to ensure you choose products that not only have high demand but also offer good profit margins and minimal risks.
Below are the key steps that will clarify how this process looks like. The more detailed overview of each step will be given further in the post.
Steps to finding products to sell on Amazon
Step 1. Choose a product category
Start by selecting a product category that interests you and aligns with your business goals. It’s essential to choose a category you are passionate about because it will keep you motivated and more
knowledgeable about the products you’re selling. Additionally, some categories are more competitive than others, so it’s vital to weigh the pros and cons of each.
Step 2. Find a product
Once you’ve chosen a category, the next step is to find a specific product within that category. There are various strategies you can use.
- Supplier to Amazon / reverse sourcing
Look for suppliers and research their price lists to find profitable deals. This involves approaching suppliers and negotiating bulk purchase prices. This method is mostly used by wholesale sellers.
- Amazon to supplier / direct sourcing
Research popular products on Amazon and find their suppliers at a lower price. This strategy involves finding deals where you can buy low and sell high, capitalizing on price differences across various platforms. This method is mostly used by online arbitrage sellers and dropshippers.
- Competition research
Analyze the competition to identify gaps in the market. Look for products that have high demand but limited availability or identify which popular brands your competitors sell that you don’t and add them to your store. This method can be used by all sellers.
Step 3. Check selling eligibility
Before you invest in inventory, check if you can sell the product on your Amazon seller account. Some products and categories require approval from Amazon due to restrictions, safety concerns, or brand registry requirements. Make sure you understand Amazon’s guidelines and obtain any necessary approvals to avoid account suspensions.
Step 4. Do product research
Conduct thorough product research to ensure the product is in demand, profitable, and free of selling risks. This includes the following key parameters.
- Demand analysis
Use product sourcing tools to check the product’s sales volume and trends. Ensure there is a steady demand for the product.
- Profitability check
Calculate potential profit margins by considering the cost of goods, Amazon fees, shipping costs, and any other expenses. A profitable product should have a healthy margin after all costs are deducted.
- Risk assessment
Investigate any potential selling risks such as intellectual property complaints, restricted categories, or flags like meltable, large and bulky, etc. Ensure the product complies with Amazon’s policies and regulations to minimize risks.
How to Choose a Product Category for Amazon?
When deciding what to sell on Amazon, selecting the right product category is crucial. Below you can find several tips on how to choose a category that aligns with your goals and brings profits.
Consider category popularity
Some categories are inherently more popular among buyers due to the nature of the products. For example, electronics and clothing are everyday essentials that people frequently purchase.
Here are some of the most popular categories among Amazon sellers according to Jungle Scout research.
10 top Amazon categories
- Home & Kitchen (35%)
- Clothing, Shoes & Jewelry (20%)
- Toys & Games (18%)
- Health, Household & Baby Care (17%)
- Baby (16%)
- Electronics (16%)
- Sports & Outdoors (16%)
- Books (14%).
Evaluate the competition
High-demand categories like electronics and clothing also come with intense competition. Assess the level of competition in each category to determine if you can effectively compete or if a niche category might be a better fit.
Assess your interest and knowledge
Choose a category that you are passionate about and knowledgeable in. This will keep you motivated and better equipped to understand your customers’ needs.
Check for restrictions and requirements
Some categories on Amazon have specific restrictions or require approval to sell. Make sure you are aware of any requirements and that you can meet them before choosing a category. Additionally, ensure you can sell in a specific category on your account.
Profitability potential
Calculate potential profit margins by considering the average selling price, costs of goods, and Amazon fees. Some categories might have higher selling prices, but also higher costs and fees.
How to Search Products to Sell on Amazon?
After you decide on the category to sell in, you start looking for specific products. Some of these methods require using product sourcing tools.
One of the best product sourcing tools is Seller Assistant. This is a comprehensive product-sourcing software that helps Amazon sellers quickly find high-profit deals. It combines two extensions: Seller Assistant Browser Extension, and IP-Alert Chrome Extension by Seller Assistant, Amazon seller tools: Bulk Restrictions Checker and UPC/EAN to ASIN converter, and features: Side Panel View, FBM&FBA Profit Calculator, Quick View, Seller Spy, Stock Checker, IP Alert, and Restrictions Checker.
Here are several effective strategies to identify profitable products.
Method 1. Competitor analysis
Analyzing your competitors can provide insights into successful products and market gaps you can fill.
Identify successful sellers in your niche and use Seller Assistant’s Seller Spy to monitor their activities. Add your competitors to Seller Spy and download the file where you can see which new products your competitors start or stop selling and how they price them. You can then add these profitable products to your inventory.
Method 2. Supplier price list research
This method works well for wholesale sellers. Wholesale sellers approach brands they want to sell or brands’ distributors and get price lists of the product they sell with hundreds or even thousands of products. Supplier price lists are a great source of new product ideas, but identifying profitable deals can be challenging.
Use Seller Assistant’s Price List Analyzer to automate this process. Upload your supplier’s price list, and the tool will generate a report highlighting high-margin items along with valuable metrics like ROI, BSR, Buy Box price, and Amazon fees. This helps you quickly spot profitable products to sell.
Method 3. Scraping product ideas
This method is ideal for online arbitrage sellers or dropshippers without existing suppliers. To find the products, you can parse product data from any supplier or e-commerce website.
Then, upload the data to Seller Assistant’s Price List Analyzer to evaluate product profitability. This allows you to filter out and identify the most profitable leads to resell on Amazon.
Method 4. Amazon to supplier / direct sourcing
Amazon itself provides several valuable sources for product ideas. You can look for popular and profitable products on Amazon and then find their match at the supplier with Seller Assistant’s Quick Links.
Places to look for popular products on Amazon
Shows the most popular products on Amazon, highlighting items in high demand.
Displays products with the biggest sales increases in the last 24 hours, helping you find trending products.
Lists the newest products added to Amazon, allowing you to discover new and innovative items.
Features products frequently added to wishlists, indicating high customer interest but not yet widely purchased.
Method 5. Specialized marketplaces
Platforms such as Etsy, Kickstarter, and Indiegogo often highlight creative and trending products that haven’t reached mainstream markets. These sites are ideal for finding innovative product ideas that can be adapted for Amazon. They offer a lot of new, creative, and niche products that could cater to a specific audience on Amazon.
Method 6. Regional and local brands
Smaller, regionally-based companies produce goods on a smaller scale compared to large manufacturers and often focus on quality and uniqueness. Providing unique items that are not widely available, helping sellers stand out in the crowded marketplace. However, you must carefully research the selling potential of these products and start small.
This method is ideal for new sellers looking to differentiate themselves with unique products and those targeting niche markets where customers value the story and origin of their purchases.
How to Check Selling Eligibility?
Next important step is to check if you can sell the product you find on your Amazon seller account. You must do it before buying a product because you may not be eligible to list products on Amazon.
You can check your selling eligibility with Seller Assistant’s Restriction Checker for individual products and with Bulk Restriction Checker for multiple products at a time.
Restriction Checker
The Restriction Checker feature helps you determine if you can sell a product on your account or it is restricted.
A green open lock icon indicates the product is sellable, a red closed lock means approval is needed, and a red closed lock with an exclamation mark signifies that the product cannot be sold on your account. The lock icon appears on the Amazon product and search pages, and on a supplier website side-by-side and allows you to see what you can or can’t sell.
Bulk Restriction Checker
The Bulk Restriction Checker tool enables you to check restrictions for up to 5000 ASINs at once. By uploading a list of ASINs, you can receive a detailed report outlining any restrictions, making it easier to manage large inventories efficiently.
In the Bulk Restriction Checker, a green open lock icon shows the product can be sold, a red closed lock signifies that approval is required, and a red closed lock with an exclamation mark indicates the product cannot be sold on your account.
How to Research Products for Amazon?
Once you find products to sell and ensure you can sell them, you must verify if they will make good deals. This involves researching factors such as competition, demand, and profitability.
The ideal tool for selecting high-profit products for your Amazon store is Seller Assistant. It helps you identify profitable deals directly on Amazon product and search pages, while also enabling thorough research on supplier websites.
Here are some tips to help you choose products that will generate revenue and avoid potential issues.
Product research tips
Select products with high demand
Use Amazon’s Best Sellers Rank (BSR) to gauge sales. A lower BSR indicates higher sales volume. Utilize Seller Assistant to find out the BSR with one click and see how many products were sold in a specific period by examining BSR drops.
Check if you can win the Buy Box
Most sales on Amazon occur through the Buy Box (Featured Offer). Winning a significant percentage of the Buy Box is crucial for increasing sales, which you can achieve by setting a competitive price. Seller Assistant displays the average Buy Box price, the minimum FBA, and FBM Buy Box price.
You can check the Buy Box share by seller with Seller Assistant’s Offers feature. It also alerts you if Amazon holds the Buy Box, which is challenging to compete with.
Avoid high competition
Steer clear of products offered by many FBA sellers or where the Buy Box price is low. Use Seller Assistant to determine the number of FBA and FBM offers. Competition is high if the number of sellers exceeds 15.
Estimate potential sales
Apply Seller Assistant to estimate the number of product units you can sell. It will show you the potential sales figures.
Check products for restrictions and IP complaints
Some products are restricted on Amazon or may have intellectual property (IP) issues. Verify that a product is allowed on Amazon and free of IP complaints before selling.
Seller Assistant’s IP Alert feature indicates products and items with IP complaints. Items with IP alerts are marked with a red triangle. It also specifies the particular problem with a product.
Restrictions Checker shows product restrictions:
- Ungated products are marked with a green open lock.
- Restricted products have a red closed lock.
- A red closed lock with an exclamation mark means you cannot sell the product on your account.
Calculate your profit
Use Seller Assistant’s FBA & FBM calculator to estimate your profit and profit margin for each product. This helps you decide which products to sell and how to price them. Enter the cost of goods (COG), logistics costs, including shipping and prep services, to accurately calculate profit, ROI, and margin.
What Is EcomBalance?
EcomBalance is a monthly bookkeeping service specialized for eCommerce companies selling on Amazon, Shopify, Ebay, Etsy, WooCommerce, & other eCommerce channels.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
And here’s some free resources:
- Monthly Finance Meeting Agenda
- 9 Steps to Master Your Ecommerce Bookkeeping Checklist
- The Ultimate Guide on Finding an Ecommerce Virtual Bookkeeping Service
- What Is a Profit and Loss Statement?
- How to Read & Interpret a Cash Flow Statement
- How to Read a Balance Sheet & Truly Understand It
Conclusion
Finding the right products to sell on Amazon is a critical step toward building a profitable business. By leveraging a variety of strategies, from analyzing competitors and supplier price lists to exploring niche marketplaces and using Amazon’s own resources like Best Sellers and Movers & Shakers, you can identify profitable and in-demand products.
With Amazon seller tools this process is essentially simplified. Seller Assistant is one of the best tools to help find and research products to sell on Amazon. It helps you identify products for Amazon and assess their demand, competition, profitability, and potential risks quickly and accurately.
With thorough research and the right approach, you can confidently select products that will drive sales and help you stand out in the competitive Amazon marketplace. Start implementing these strategies today to discover winning products and take your Amazon business to new heights.