How to Find Products to Sell on Amazon: A Complete Guide

Step 1: Understand Amazon’s Product Landscape

Research Amazon’s Best-Selling Categories

Begin by exploring Amazon’s own “Best Sellers” pages. Navigate to amazon.com/Best-Sellers/zgbs. This page is updated hourly and provides a real-time snapshot of what’s currently popular across various departments. Click into different categories like “Home & Kitchen,” “Pet Supplies,” “Electronics,” or “Sports & Outdoors.” Pay attention to sub-categories as well. For instance, within “Electronics,” look at “Headphones,” “Wearable Technology,” or “Camera & Photo.” Identify categories with consistent sales volume and a diverse range of products, rather than those dominated by a single brand or a few SKUs.

Further refine your research by using tools like Jungle Scout’s Opportunity Score or Helium 10’s Cerebro. While these are paid tools, they offer free trials or limited free access that can give you insights into category performance, historical sales data, and the number of competing listings. Look for categories where the top 10-20 products consistently generate significant monthly revenue (e.g., over $5,000 per month per product) but aren’t entirely saturated with thousands of highly similar, low-priced listings.

Analyze Competitor Products and Pricing

Once you’ve identified a few promising categories, dive deeper into specific product listings. For each potential product idea, open at least 5-10 top-selling competitor listings on Amazon. Examine their product titles, bullet points, descriptions, and images. What are they doing well? What are their weaknesses? Read customer reviews, especially the 3-star and 1-star reviews. These often highlight common pain points, missing features, or quality issues that you could address with your own product.

Pay close attention to pricing strategies. Note the average selling price of similar products. Calculate the estimated Amazon fees (refer to Amazon’s FBA Revenue Calculator or a third-party tool like Jungle Scout’s FBA Calculator for this). Understand the pricing tiers and how they affect profitability. For example, a product selling for $15 might have very thin margins after Amazon fees, while a similar product at $30 could be highly profitable. Look for products where there’s a clear value proposition, not just the lowest price.

Step 2: Identify Promising Product Niches

Utilize Product Research Tools

Leverage dedicated Amazon product research tools to uncover hidden gems and validate demand. Popular choices include:

Jungle Scout: Use its Product Database to filter products by criteria like price, sales, reviews, and weight. The Opportunity Finder helps identify niches with high demand and low competition.
Helium 10: Black Box is excellent for finding products based on specific filters (e.g., monthly revenue, number of sellers, review count). Cerebro helps analyze competitor keywords, and Magnet assists with keyword research for your own listings.
Keepa: Essential for viewing historical sales rank, price fluctuations, and buy box changes. This helps you understand product seasonality and long-term demand stability.

When using these tools, focus on metrics like:

Monthly Sales Volume: Aim for products with at least 300-500 units sold per month by top competitors.
Average Selling Price: Generally, products priced between $20-$70 offer a good balance of perceived value and manageable FBA fees. Avoid very low-priced items unless you can achieve extremely high volume.
Review Count: Look for products where the top sellers have a moderate number of reviews (e.g., 50-500) rather than thousands. This indicates there’s room for a new seller to compete without being overwhelmed by established brands.
Weight and Dimensions: Lighter, smaller products incur lower FBA storage and shipping fees. Avoid oversized or heavy items for your first product unless you have significant capital and experience.

Evaluate Product Demand and Profitability

Beyond raw sales numbers, assess the underlying demand. Are sales consistent throughout the year, or are they highly seasonal (e.g., Christmas decorations)? Use Keepa to examine historical sales rank data for at least the past year. A stable, low sales rank (e.g., consistently below 50,000 in its main category) indicates strong, consistent demand.

To evaluate profitability, you need to estimate all costs involved. This includes:

Product Cost: The price you pay your supplier per unit.
Shipping Cost: From the supplier to Amazon’s fulfillment center (FBA) or your warehouse. This can be significant for international shipments.
Amazon FBA Fees: Referral fees (percentage of sale price) + fulfillment fees (per unit, based on size/weight) + storage fees (monthly, based on volume).
Marketing/Advertising Costs: Budget for Amazon PPC (Pay-Per-Click) campaigns to launch your product.
Returns/Refunds: Factor in a small percentage for returns.

Use Amazon’s FBA Revenue Calculator or a similar tool to plug in these numbers. Aim for a net profit margin of at least 20-30% after all costs. If the margin is too thin, the product might not be viable, even with good sales.

Step 3: Source Potential Products

Explore Wholesalers and Manufacturers

For established products or brands, wholesalers are a good starting point. Websites like Faire, Alibaba (for bulk orders), and local trade show directories can connect you with distributors. For private label or custom products, direct manufacturers are ideal. Alibaba.com is a popular platform for finding manufacturers, especially in China. Use the “Suppliers” tab and filter by “Trade Assurance” and “Verified Supplier” to reduce risk.

When contacting suppliers, be clear about your requirements:

Minimum Order Quantity (MOQ): Start with a manageable MOQ, perhaps 100-500 units for your first order.
Unit Price: Negotiate based on quantity. Get quotes for different MOQs.
Production Time: How long will it take to manufacture your order?
Payment Terms: Typically 30% upfront, 70% upon completion or before shipment.
Shipping Options: Air freight is faster but more expensive; sea freight is slower but cheaper.
Customization Options: Can they add your logo, custom packaging, or make minor product modifications?

Consider using a sourcing agent, especially if you’re new to importing or dealing with overseas manufacturers. They can help with supplier vetting, quality control, and logistics.

Consider Private Labeling and Dropshipping

Private Labeling: This involves putting your own brand name and logo on a generic product manufactured by a third party. It allows for brand building, higher margins, and less direct competition than reselling. This is the most common and recommended method for new Amazon sellers. Focus on finding a product that can be improved slightly or bundled uniquely to differentiate it from competitors.

Dropshipping: With dropshipping, you don’t hold any inventory. When a customer orders, you purchase the item from a third-party supplier (e.g., AliExpress) who then ships it directly to the customer. While it has low upfront costs, dropshipping on Amazon can be challenging due to strict policies regarding seller of record, shipping times, and customer service. Amazon generally requires sellers to be the seller of record on all invoices, and long shipping times from overseas suppliers can lead to customer complaints and account suspension. It is generally not recommended for beginners on Amazon FBA.

Step 4: Validate Product Viability

Order Samples and Assess Quality

Before placing a large bulk order, always order samples from 2-3 different suppliers. This is a critical step. Do not skip it.

Examine the product thoroughly: Check for build quality, materials, functionality, and finish. Does it match the supplier’s specifications and your expectations?
Test packaging: Is it durable enough to withstand shipping? Does it present your brand well?
Compare samples: Evaluate which supplier offers the best balance of quality, price, and communication.
Identify potential issues: Are there any common complaints from competitor reviews that your sample also exhibits? Can the supplier address these?

If the samples are not satisfactory, do not proceed with that supplier. It’s better to spend a few hundred dollars on samples than thousands on unsellable inventory.

Calculate All Associated Costs and Margins

This is where you finalize your financial projections. Create a detailed spreadsheet that includes every single cost associated with getting your product from the factory to the customer’s door and then some.

Product Cost Per Unit: Final negotiated price with your chosen supplier.
Shipping Cost Per Unit: Freight (air/sea), customs duties, import taxes, drayage (transport from port to FBA warehouse). Get definitive quotes from freight forwarders.
Amazon FBA Fees Per Unit: Referral fee, fulfillment fee (pick and pack, shipping), monthly storage fee. Use the Amazon FBA Revenue Calculator with precise product dimensions and weight.
Packaging Costs Per Unit: If you’re doing custom packaging or inserts.
Inspection Costs Per Unit: If you hire a third-party quality inspection service (highly recommended for overseas orders).
Marketing/Launch Costs: Budget for initial Amazon PPC, potential external promotions, photography, and listing optimization.
Contingency: Add a 5-10% buffer for unexpected costs (e.g., returns, damaged inventory, price changes).

Once you have all these costs, subtract them from your projected selling price to determine your gross profit per unit and then your net profit margin. Ensure this margin is healthy enough to justify the investment and cover potential advertising spend. If the numbers don’t look good, go back to Step 2 or 3 and refine your product idea or sourcing strategy.

FAQs

Q1: How much money do I need to start selling on Amazon?

A1: The initial investment can vary significantly, but a realistic budget for a private label FBA product typically ranges from $2,500 to $7,000 for your first product. This covers inventory (MOQ), shipping, initial Amazon fees, professional product photography, and a budget for initial Amazon PPC advertising. Smaller, lighter products will be on the lower end, while larger or more complex items will require more capital. It’s crucial to have enough capital to order at least 2-3 months of inventory after your initial launch.

Q2: How long does it take to find a product and launch it on Amazon?

A2: The entire process, from initial product research to having your product live and selling on Amazon, can take anywhere from 3 to 6 months. Product research itself can take 2-4 weeks. Supplier communication, sample ordering, and production can take 4-8 weeks. Shipping from overseas by sea freight takes 4-6 weeks, while air freight is 1-2 weeks. Finally, Amazon’s receiving process can add another 1-2 weeks. Planning is key to managing these timelines effectively.

Q3: Should I start with a single product or multiple products?

A3: It is highly recommended to start with a single, well-researched product. This allows you to learn the Amazon selling process, understand FBA logistics, master listing optimization, and manage PPC campaigns without being overwhelmed. Once you have successfully launched and scaled your first product, you can then leverage that experience and capital to expand into related products or new niches. Trying to launch multiple products simultaneously as a beginner significantly increases complexity and risk.

Q4: What are the biggest risks when selling on Amazon?

A4: The biggest risks include selecting a product with insufficient demand or too much competition, underestimating total costs leading to thin margins, quality control issues with your supplier resulting in bad reviews and returns, intellectual property infringement (unknowingly selling a patented or trademarked item), and Amazon account suspension due to policy violations. Thorough research, due diligence on suppliers, and adherence to Amazon’s terms of service are crucial to mitigate these risks.