What to Sell on Amazon

One of the first challenges for any aspiring Amazon seller is deciding what to sell. Amazon’s massive marketplace offers countless opportunities, but choosing the right products can make or break your success. Whether you're looking to launch a side hustle or scale a full-fledged ecommerce business, understanding which products perform well and align with your goals is critical. In this comprehensive guide, we’ll explore how to choose profitable products, key product categories that thrive on Amazon, and strategies for conducting product research to give you an edge in this competitive marketplace.

1. Understanding Amazon's Product Categories

Amazon’s product categories are incredibly diverse, ranging from everyday household goods to niche and luxury items. Here are the key categories that tend to perform well:

• Electronics: Items such as headphones, phone accessories, smart devices, and gaming equipment are among the best-selling products on Amazon. Keep in mind that competition is fierce in this category, so differentiating your product or finding a sub-niche can be key to success.

• Beauty and Personal Care: With an increasing focus on wellness and self-care, beauty products like skincare, hair care, and cosmetics are hot sellers. Products that are eco-friendly or feature organic ingredients are particularly appealing to today’s consumers.

• Home and Kitchen: From kitchen gadgets to home decor, this category includes a wide range of items that customers frequently purchase. Products such as storage solutions, cooking utensils, and small furniture items are especially popular.

• Clothing and Accessories: Fashion is a growing category on Amazon, particularly for casual wear, fitness apparel, and accessories like belts, bags, and hats. Private label brands often find success in this space, especially when targeting specific styles or trends.

• Toys and Games: This category is especially popular during the holiday season, but sells well year-round. Items like puzzles, educational toys, and tech-driven toys (such as drones) tend to do well.

• Books: Originally an online bookstore, Amazon continues to dominate in book sales. Self-published authors have also found great success selling ebooks and physical copies through Amazon’s Kindle Direct Publishing (KDP).

• Health and Wellness: From vitamins and supplements to fitness equipment, this is a booming category. Products that cater to specific health trends, such as vegan supplements or workout gear, can attract dedicated buyers.

Choosing the right category for your products involves understanding demand, competition, and what differentiates your offerings. The best product ideas often come from a blend of current trends and meeting unmet needs in the market.

2. Criteria for Choosing Products to Sell

Selecting a product to sell on Amazon isn’t just about what’s popular—there are strategic considerations that can increase your chances of success. Here are the most important factors to consider when deciding what to sell:

• Profit Margins: The higher the profit margin, the more room you have to cover costs such as Amazon’s seller fees, advertising expenses, and shipping. As a general rule, aim for products that can offer at least a 30% margin after all expenses.

• Demand: Research how frequently the product is searched for on Amazon. Use tools like Amazon’s Best Seller Rank (BSR), Google Trends, and keyword research tools to gauge the popularity of different products.

• Low Competition: While high-demand products are attractive, too much competition can make it difficult to break through. Look for product niches where demand is high, but there’s relatively less competition. A helpful indicator is the number of reviews on top-selling products—if there are few reviews, it might be a less saturated niche.

• Size and Weight: Products that are small and lightweight are easier and cheaper to ship, which translates to better profit margins, especially if you’re using Fulfilment by Amazon (FBA). Large or heavy items can increase shipping and storage costs, eating into your profits.

• Branding and Differentiation: If you’re selling a common product, think about how you can brand or modify it to stand out. For example, creating bundles, adding unique features, or improving product design can set your listing apart from competitors.

• Replenishable Products: Consumable products that need to be reordered frequently, such as vitamins, beauty products, or office supplies, can provide a steady stream of repeat business.

By carefully selecting products that meet these criteria, you can maximize profitability and reduce the risks associated with selling on Amazon.

3. Conducting Product Research

Effective product research is essential for discovering the best items to sell. Fortunately, Amazon provides a wealth of data that can help you make informed decisions. Here are some of the best ways to conduct product research:

• Amazon’s Best Sellers List: This list, broken down by category, shows you what’s currently trending on Amazon. While it may seem obvious to sell the top items, this can also give you insight into the kinds of products customers are interested in and where there may be opportunities to enter the market.

• Amazon Product Reviews: Reviews not only tell you how well a product is performing, but they also provide invaluable customer feedback. Look for complaints or suggestions in the reviews—these can help you identify ways to improve your product offering or find gaps in the market.

• Amazon FBA Tools: Tools like Jungle Scout, Helium 10, and AMZScout offer insights into product demand, sales trends, and competition. These tools can help you estimate monthly sales, track keyword performance, and even calculate potential profits.

• Competitor Analysis: Look at your competitors' listings to understand what’s working for them—and what’s not. By identifying gaps in their product offerings, branding, or customer service, you can position your own products to stand out.

• Keyword Research: Use keyword tools like Ahrefs, Google Keyword Planner, and Amazon’s own search bar to find popular search terms in your chosen category. Keywords can help you identify product opportunities and optimize your listings for maximum visibility.

By combining these research methods, you can gather a comprehensive picture of what products are selling well and how you can enter the market effectively.

4. Private Label vs. Arbitrage vs. Dropshipping

When deciding what to sell on Amazon, it's important to consider the business model that best suits your goals. Here are three popular methods:

• Private Label: This involves sourcing generic products from manufacturers, then branding and packaging them under your own label. Private label products give you the most control over your business, allowing you to create a unique brand. This method often requires a larger upfront investment, but the long-term potential is high.

• Retail Arbitrage: Retail arbitrage involves buying discounted products from retail stores and reselling them on Amazon at a higher price. While it’s a quick way to get started, margins can be lower, and it can be difficult to scale.

• Dropshipping: With dropshipping, you list products on Amazon without holding any inventory. When a customer places an order, the supplier ships the product directly to the customer. While dropshipping requires minimal upfront investment, it can be difficult to maintain quality control and customer satisfaction.

Each model has its pros and cons, so it's essential to choose one that aligns with your resources, risk tolerance, and long-term business goals.

5. Niche Markets: A Hidden Goldmine

Niche markets can often be a hidden goldmine for Amazon sellers. Selling in a niche market means targeting a specific, often smaller, group of customers with specialized products. While the audience might be smaller, niche markets tend to have lower competition and can offer higher profit margins.

Examples of niche products that do well on Amazon include:

• Eco-friendly products: Items like biodegradable kitchen supplies or reusable grocery bags.

• Hobbyist supplies: Crafting kits, specialist tools, or model-building supplies.

• Pet accessories: Customized collars, grooming kits, or unique pet toys.

• Outdoor gear: Camping, hiking, or cycling equipment that appeals to dedicated enthusiasts.

By focusing on a niche, you can establish yourself as an authority within that space and build a loyal customer base over time.

Conclusion

Deciding what to sell on Amazon requires careful thought, planning, and research. From choosing the right product category and business model to leveraging powerful research tools, success on Amazon depends on understanding your market and delivering value to your customers. By considering factors like profit margins, demand, competition, and scalability, you can make informed decisions that maximize your chances of long-term success.