Find Products to Sell on Amazon: A Beginner’s Guide
Step 1: Understand Amazon’s Product Landscape
Research Amazon’s Best-Selling Categories
To begin, navigate directly to Amazon’s “Best Sellers” page. You can typically find this by searching “Amazon Best Sellers” in your web browser or looking for a direct link on the Amazon homepage, often under “Departments” or “Shop by Category.” Once there, systematically browse through the top-level categories such as “Home & Kitchen,” “Electronics,” “Toys & Games,” “Pet Supplies,” etc. Pay close attention to the subcategories within these broad headings. For instance, within “Home & Kitchen,” you might find “Kitchen & Dining,” “Bedding,” or “Bath.” The goal here is to identify broad areas where sales volume is demonstrably high. Note down 3-5 categories that pique your interest or align with existing knowledge you possess.
Analyze Current Market Trends and Niche Opportunities
After identifying best-selling categories, delve deeper into current market trends. Use resources like Google Trends (trends.google.com) to search for keywords related to the categories and products you’ve identified. For example, if “Home & Kitchen” is a category of interest, search for terms like “air fryer,” “smart thermostat,” or “meal prep containers” to see their search volume trends over the past year or five years. Look for terms with consistent or upward trends, avoiding those in sharp decline. Simultaneously, explore niche opportunities by looking for underserved segments within popular categories. For instance, instead of just “coffee makers,” consider “single-serve espresso machines for camping” or “cold brew coffee makers with built-in grinders.” Read product reviews on existing best-sellers to identify common complaints or desires that current products don’t fulfill, as these often point to niche gaps.
Step 2: Utilize Product Research Tools
Leverage Amazon’s Own Tools (e.g., Best Sellers Rank)
Amazon’s Best Sellers Rank (BSR) is a crucial indicator of product popularity. When viewing any product listing on Amazon, scroll down to the “Product information” or “Product details” section. You will find the BSR listed for the specific category and often for several subcategories. A lower BSR (e.g., #1 vs. #100,000) indicates higher sales volume within that category. Aim to find products with a BSR consistently below 50,000 in their primary category, as this suggests a healthy sales velocity. Also, look at the “Frequently bought together” and “Customers who bought this item also bought” sections on product pages. These provide insights into complementary products and potential bundles, revealing additional product ideas or market needs.
Explore Third-Party Product Research Software
To gain a more comprehensive view, invest in or trial third-party product research tools. Popular options include Jungle Scout, Helium 10, and Viral Launch. These tools offer advanced features such as estimated monthly sales volume, revenue, average selling price, number of sellers, and keyword search volume. For example, using Jungle Scout’s “Product Database,” you can filter products by specific criteria like “minimum monthly sales (e.g., 300 units),” “maximum BSR (e.g., 75,000),” “number of reviews (e.g., 50-500),” and “product weight.” This allows you to quickly identify products that meet your desired sales volume, competition level, and shipping cost parameters. Most tools offer free trials or introductory pricing, which is sufficient for initial exploration.
Step 3: Evaluate Product Viability and Profitability
Assess Competition and Demand for Potential Products
Once you have a list of potential products, rigorously assess their competitive landscape. Search for your chosen product keywords directly on Amazon. Analyze the first 1-2 pages of search results. Count the number of competing products with a high number of reviews (e.g., over 1,000) and a strong BSR. Look for products that are highly differentiated or where you can offer a clear value proposition (e.g., better quality, unique features, lower price). If the top 10 results are dominated by established brands with thousands of reviews and very low prices, it may be too saturated. Conversely, if you see a mix of established and newer sellers, or products with moderate review counts and decent BSRs, it could indicate a less competitive environment. Demand is indicated by the BSR and estimated sales data from third-party tools; generally, aim for products with at least 300-500 estimated monthly units sold.
Calculate Profit Margins and Sourcing Costs
This is a critical step. For each potential product, estimate all associated costs. This includes:
- Unit Sourcing Cost: Obtain quotes from suppliers (e.g., on Alibaba.com or by contacting manufacturers directly). Request prices for various order quantities (e.g., 100, 500, 1000 units).
- Shipping Cost: Factor in freight from the supplier to your warehouse or Amazon FBA center. Obtain quotes from freight forwarders or estimate based on product weight and dimensions.
- Amazon Fees: Use Amazon’s FBA Revenue Calculator (sellercentral.amazon.com/fba/revenuecalculator) to estimate referral fees, fulfillment fees (pick & pack, weight handling), and storage fees. You will need the product’s estimated dimensions and weight for this.
- Marketing & Advertising Costs: Allocate a budget for Amazon PPC (Pay-Per-Click) advertising, typically 10-15% of your target selling price initially.
- Miscellaneous Costs: Consider packaging, inserts, photography, and potential return costs.
Subtract all these costs from your target selling price to determine your net profit per unit. Aim for a minimum net profit margin of 25-30% after all expenses, as this provides a buffer for unexpected costs and allows for sustainable growth.
Step 4: Validate Your Product Idea
Conduct Small-Scale Market Testing
Before committing to a large inventory order, perform small-scale market testing. This can involve ordering a limited quantity (e.g., 50-100 units) from your chosen supplier to test product quality and initial market reception. Alternatively, consider launching a “test” listing on Amazon with a small initial inventory. Monitor sales velocity, customer questions, and conversion rates closely. Another method is to run a small Google Ads or Facebook Ads campaign driving traffic to a simple landing page that gauges interest in your product concept, perhaps offering a pre-order discount. This provides data on actual customer interest and purchasing intent without significant upfront inventory risk.
Gather Customer Feedback and Refine Your Product Choice
Once you have initial sales or interest, actively solicit customer feedback. For products sold on Amazon, closely monitor customer reviews and seller feedback. Pay attention to common themes, both positive and negative. If customers consistently praise a feature, highlight it in your listing. If they frequently mention a flaw, consider how you can improve the product with your supplier for future iterations. For test campaigns, send follow-up surveys to those who expressed interest or made a small purchase. This direct feedback is invaluable for refining your product, its features, its marketing message, and even its pricing, ensuring it truly meets a market need before you scale up your operation.
FAQ: How do I find products to sell on Amazon?
You find products by researching best-selling categories, analyzing market trends, using product research tools like Jungle Scout or Helium 10, assessing competition and demand, calculating profit margins, and finally, validating your idea through small-scale market testing and customer feedback.
FAQ: What is a good Best Sellers Rank (BSR) on Amazon?
A good BSR generally indicates strong sales. Aim for products with a BSR consistently below 50,000 in their primary category. Lower numbers (e.g., #1, #100) are better, indicating higher sales volume within that category.
FAQ: How much money do I need to start selling on Amazon?
The initial investment varies widely depending on the product. It includes product sourcing costs, shipping, Amazon fees, and marketing. While some start with as little as $500-$1,000 for very low-cost, small items, a more realistic budget for a sustainable FBA business often starts from $2,000-$5,000 or more to cover initial inventory, tools, and marketing.
FAQ: Can I sell products without a brand on Amazon?
Yes, you can sell products without a registered brand on Amazon by listing them as “Generic” or “No Brand” if they don’t have a specific brand name. However, establishing your own brand through Amazon’s Brand Registry offers significant advantages in terms of protecting your listings, accessing enhanced content features, and building customer loyalty.
