Around the world, millions of entrepreneurs are making money selling products on Amazon, and 73% of them use Amazon FBA for their fulfillment. It’s an efficient way for small businesses and startups to launch businesses and products that compete with established companies. If you’re considering starting an e-commerce business that sells products on Amazon, you may be wondering how to find the right products. Here is a brief guide to finding products to sell on Amazon FBA.
How to Choose Which Products to Sell on Amazon
Before choosing specific products and looking for suppliers, you must consider what type of products you want and how you will do business. Here are the most important criteria for choosing which products you will sell on Amazon:
Niche
Your niche should be a product, service, or industry in which you are an expert and offer unique value to your customer. If you carry products available elsewhere, consider how you will compete with other businesses: Will your price or service be better? Will you have unique products or services or unique bundles and promotions? To compete on Amazon, your business has to stand out, so research your niche carefully and figure out what sets you apart.
Profit
You will need to purchase products at a price that will allow you to sell them at a profit. Your profit needs to be large enough to cover all your business expenses, including the cost of your own time and labor, while still being low enough to compete with other businesses in your niche. Calculating all your overhead and expenses will allow you to determine how much you can spend on products and how much profit you can expect from selling on Amazon.
Scalability
There are two crucial aspects of scalability. If your business is successful, you will need to fulfill more and more orders: how quickly can your suppliers scale up and deliver more products? For example, if you sell handmade quilts, there is a limit to how many you can make in a year and, therefore, a limit to the size and scale of your business. On the other hand, scalability will allow you to increase your offerings and grow your business if your business plateaus. Are there related products in your niche that fit into your product line and will enable you to grow? For example, if you sell comic books, your customers may also be interested in action figures.
Practicality
It’s important to consider practicality in your Amazon products. Products, especially large, heavy, or fragile items, are difficult to ship and prone to problems and complaints. Items especially expensive, rare, or need to travel exceptional distances may require special shipping procedures and insurance. Consider the kinds of products people look for and buy on Amazon and how to easily fulfill orders with minimal disruptions.
How to Find Products to Sell on Amazon
Once you have considered your business plan, including costs and prices, it’s time to start looking for the specific products you might sell on Amazon FBA. Some of the best ways to find products for your Amazon business include:
Research Google Trends
Google Trends is an excellent tool for showing you what products people are looking for, as well as other important information like the specific words and keywords they use, regions where the products are more popular, and search frequency over time. Go to Google Trends and look up your niche and your products. Don’t forget to look at “related queries” for more ideas.
Research Social Media
People often use social media to share the products they are interested in. Pinterest and TikTok are especially powerful for identifying products that are trending and in high demand. Search for your desired niche or product; note how many people are talking about it and what they say. Social media is also a powerful way to identify people’s thoughts and feelings, which can help you identify an opportunity for an unmet need or competitive advantage related to your product.
Research Amazon Trends and Best Sellers
Many times Amazon itself is a great way to identify desirable products. Amazon Best Sellers show you what products are selling and their categories, subcategories, and related products. Amazon trend reports are another great way to review what is currently popular on the platform, so you can assess opportunities and competition.
Research Other Online Marketplaces
While Amazon is the biggest online marketplace in the world, it isn’t the only one. Other marketplaces, like Etsy, eBay, or AliExpress, may have popular products that are less common on Amazon or appeal to a different audience. If there is an online specialty marketplace for your niche or your customer, research your products on that marketplace. The more information you obtain about what products people want, what price they are willing to pay, what features they require, or what they don’t like about the current offerings, the better able you will be to find the right products for your Amazon store. This research is also integral to the foundation of your marketing plan, so it’s vital for your business in more ways than one.
Conclusion
Choosing products to sell on Amazon FBA is a balancing act between the products that meet your business's needs and those that meet your customer's needs. Fortunately, a vast range of methods and tools will help you identify those products and set your business apart from the competition. The more time you spend planning and researching, the more informed your business plan is, and the greater your chances of success. Take your time, consider all your options, be informed before launching an Amazon FBA business, and set yourself up for success!